Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has been selling stocks at a higher clip than usual this year. Through the first three quarters of 2024, Berkshire sold $133 billion worth of stocks. This mostly reflects recent sales of Berkshire’s largest holding, Apple, but it also trimmed its Bank of America stake, which has also been a sizable investment for Berkshire in recent years.
Here’s Berkshire Hathaway’s top four holdings at the end of Q3 and each position’s market value:
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Apple: $69.9 billion
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American Express (NYSE: AXP): $41.1 billion
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Bank of America: $31.7 billion
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Coca-Cola (NYSE: KO): $28.7 billion
At Berkshire Hathaway’s 2024 shareholders’ meeting, Buffett mentioned that he found it “quite attractive” to build a larger cash position with the stock market continuing to rise. Valuations have gotten more expensive, which is limiting the pool of quality businesses selling at sensible prices.
With the stock market sitting close to new highs, it’s more telling what stocks Buffett is not selling. While Buffett unloads Apple and Bank of America, it’s noteworthy that he has not sold a single share of Coca-Cola or American Express in over 25 years.
Coca-Cola is one of Berkshire’s longest-held investments. Buffett originally bought the stock in the late 1980s and bought more shares in 1994. Berkshire still holds 400 million shares after stock splits, worth $28.7 billion at the end of Q3.
Buffett places a high value on Coke’s brand. Despite shifting consumer preferences away from sugary carbonated beverages, the company has continued to drive growth across a large lineup of water, tea, coffee, energy, and other carbonated beverages. There are over 2 billion servings of the company’s products consumed every day, which translates to consistent revenue and profits.
After reaching a 52-week high of $73, Coca-Cola shares currently trade around $64. The pullback has brought the stock’s forward dividend yield to an attractive 3%. The above-average yield on top of Coke’s growth opportunities certainly makes the stock a tempting buy on the dip.
The stock fell after the company posted a 1% year-over-year decline in unit case volumes. Coke is feeling the sting of macroeconomic headwinds that have made consumer spending unpredictable this year, but these are near-term problems that the company can navigate through as it has before.
