Warren Buffett, commonly known as the Oracle of Omaha, is a familiar name to many when thinking of the financial world.
Of course, many mimic his portfolio moves.
One of his purchases in particular, Occidental Petroleum OXY, has gained widespread attention over the last year amid volatile energy prices.
And it seems that the Oracle of Omaha can’t stay away from the stock; Berkshire has been buying more OXY throughout May, now holding roughly 2.2 million shares, reflecting a 25% stake in the company.
In addition to OXY, two other stocks that the legendary investor has placed big bets on include Coca-Cola KO and Apple AAPL.
For those interested in investing like Buffett, let’s take a closer look at each.
Occidental Petroleum
Buffett’s been in the headlines numerous times over the last year regarding his OXY purchases. Still, it’s worth noting that the Oracle of Omaha said there were no plans to fully acquire the company at the latest annual shareholder meeting,
OXY posted lighter-than-expected results in its latest release amid falling energy prices, with the company falling short of the Zacks Consensus EPS Estimate by roughly 16% and posting a negative -3.7% revenue surprise.
Zacks Investment Research
Image Source: Zacks Investment Research
Of course, the favorable operating environment has allowed OXY to reward its shareholders nicely, growing its dividend payout by nearly 40% just over the last year. Berkshire owns roughly $10 billion of OXY preferred stock, which pays an 8% dividend yield.
Zacks Investment Research
Image Source: Zacks Investment Research
Apple
Buffett has stated many times that he’s attracted to the mega-cap giant due to a simple fact – brand loyalty. Apple consumers tend to trade old Apple products for new ones, establishing a loyal customer base.
The company posted solid results in its latest quarter; iPhone revenue totaled $51.3 billion, 4% above the Zacks Consensus Estimate and improving 1.5% from the year-ago period.
As we can see from the chart below, the better-than-expected iPhone results snapped a streak of back-to-back negative surprises.
Zacks Investment Research
Image Source: Zacks Investment Research
In addition, shares provide exposure to technology and provide income, with the company’s annual dividend currently yielding 0.5%. While the yield is undeniably on the lower end of the spectrum, Apple’s 6% five-year annualized dividend growth rate helps pick up the slack.
Zacks Investment Research
Image Source: Zacks Investment Research
Coca-Cola
Coca-Cola is an American multinational corporation best known for its flagship Coca-Cola beverage. It’s a long-term holding for Berkshire, having first purchased shares in the late 1980s.
The company continues to grow steadily, with earnings estimated to climb 5.3% on 4.7% higher revenues in its current fiscal year (FY23). The growth is forecasted to continue in FY24, with estimates indicating earnings and revenue growth of 7.5% and 5.2%, respectively.
Zacks Investment Research
Image Source: Zacks Investment Research
Coca-Cola’s annual dividend presently yields 3.1%, well above the Zacks Consumer Staples sector average. It’s also worth highlighting that KO is a member of the elite Dividend King club, showing an unparalleled commitment to shareholders through 50+ years of increased payouts.
Zacks Investment Research
Image Source: Zacks Investment Research
Bottom Line
Many mimic Buffett’s moves for understandable reasons.
And interestingly enough, the Oracle of Omaha has continued to purchase Occidental Petroleum OXY shares throughout May.
Two other stocks – Coca-Cola KO and Apple AAPL – also reflect sizable bets from the legendary investors.
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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
