Warren Buffett's Recent Investments in Forever Holdings

The Oracle of Omaha, Warren Buffett, has made notable additions to his portfolio over the past six weeks. He has decided to continue holding eight specific stocks "indefinitely," which highlights his long-term investment strategy.

Since taking over as CEO of Berkshire Hathaway, Buffett has showcased exemplary investment success, with an astonishing return of over 6,321,000% on Class A shares as of March 21.

Buffett's unique approach is not just in picking stocks but also in openly discussing his views on the U.S. economy and investments he considers top-notch. His optimistic outlook encourages investors to believe in the growth potential of American markets, reinforcing his focus on finding good deals within Berkshire's $285 billion portfolio.

Buffett's Indefinite Holdings

In his 2023 letter to shareholders, Buffett identified eight stocks as indefinite holdings in Berkshire's portfolio. Among these are the well-known Coca-Cola and American Express, which have been in Berkshire's possession since 1988 and 1991, respectively.

However, recent filings indicate that Buffett has also been acquiring shares in six other companies he views as 'forever' holdings. For instance, he invested around $35.7 million to purchase over 763,000 additional shares of Occidental Petroleum on February 7. Since 2022, Berkshire has significantly increased its stake in Occidental to nearly 265 million shares.

This large investment indicates Buffett's confidence in the future of crude oil prices, driven by a previous lack of investment in the industry during the COVID-19 pandemic. As the demand for oil continues to grow and production struggles to keep pace, the prices are likely to benefit, presenting Occidental Petroleum as a potentially lucrative investment.

Investments in Japan's Trading Houses

The other stocks Buffett is focusing on are Japan's five major trading houses: Mitsubishi, Itochu, Mitsui, Sumitomo, and Marubeni. Recent regulatory documents confirmed that Berkshire has increased its holdings in all of these companies by over one percentage point.

These trading houses are key players in Japan's economy, involved in diverse sectors such as energy, food resources, and healthcare. They have stable operations in various industries, which provides a layer of protection against substantial disruption.

Buffett also appreciates the responsible management practices of these companies, which have low compensation for executives and favorable capital-return policies, such as dividends and share buybacks. Furthermore, compared to the current market conditions, with high valuations in the S&P 500, these trading houses offer a compelling investment opportunity.

In summary, Buffett's recent actions underscore his continued commitment to investing in companies he believes in for the long haul, showcasing his strategy of seeking value even in a challenging market environment.

Buffett, Investments, Stocks