Warren Buffett is a role model for many to emulate. His investments receive correspondingly great attention. But what do analysts actually say about the stocks that are in the portfolio of Buffett’s conglomerate Berkshire Hathaway?
• Warren Buffett relies on long-term success
• An entry from Berkshire Hathaway is considered a seal of quality
• Analysts view Buffett shares mostly positively
Warren Buffett is certainly the most famous value investor in the world. This means that he bets on stocks that he considers to be undervalued based on the intrinsic or fair company value. Thanks to this strategy, the stock market guru is now listed in the Forbes list as the eighth richest person in the world. So it’s no wonder that his investment decisions receive a lot of attention in the stock market world.
If the value investor buys shares in a company, this is considered an accolade. Analysts also largely view Buffett’s current investments positively.
DaVita Healthcare Partners
As can be seen from the so-called 13F form filed with the US Securities and Exchange Commission (SEC), DaVita Healthcare Partners occupied tenth place in the Berkshire portfolio as of September 30, 2024. However, according to TipRanks, analysts see little potential for the dialysis service provider’s stock and gave it a hold rating three times, while one analyst even advises selling DaVita stock. On average, they see the share price target at $157.25 (as of January 13, 2025).
Chubb Limited
Chubb Limited, meanwhile, was Buffett’s ninth-largest investment in the third quarter. Analysts are already more optimistic about this. On TipRanks, the insurance company has an overall moderate buy rating, with six analysts recommending the stock as a buy, five as a hold and one as a sell. In twelve months they see the share price at an average of $307.00.
Kraft Heinz
Kraft Heinz landed in eighth place among the Buffett portfolio’s largest holdings. Analysts are rather cautious about this. According to TipRanks, four of them give a buy rating, ten a hold rating and one a sell rating. The average price target is $34.80.
Moody’s
The rating agency Moody’s came in seventh place and, according to TipRanks, also received a moderate buy recommendation from other analysts. Seven of them recommend buying and three recommend holding Moody’s shares. On average, they see the stock at $525 in twelve months.
Occidental Petroleum
Occidental Petroleum is one of the “Oracle of Omaha’s” favorite stocks. According to TipRanks, the oil and gas company also has a moderate buy ranking from other analysts. Accordingly, seven analysts recommend buying the stock, 12 recommend holding it and one analyst recommends selling it. The average price target is $60.95.
Chevron
Chevron is the fifth largest investment in Berkshire Hathaway’s portfolio. Analysts are clearly giving their thumbs up for this. According to TipRanks data, the energy company’s stock receives 15 buy ratings and three hold ratings. In your opinion, the stock could be trading at $175.88 in twelve months.
Coca Cola
Coca-Cola, which represented the fourth largest position in the star investor’s portfolio in the third quarter, also received a Strong Buy rating overall. The TipRanks overview shows that a total of 14 analysts recommend buying the shares of the manufacturer of Buffett’s favorite drink, while only one recommends holding. They give an average price target of $72.62.
Bank of America
Analysts at Bank of America also share the 94-year-old stock market guru’s optimism. As TipRanks data shows, the major US bank currently has 17 buy and two hold ratings. The average price target is $52.26.
American Express
The credit card provider American Express took second place among the Buffett portfolio’s largest holdings in the third quarter. Meanwhile, analysts gave the stock a moderate buy rating overall, with six buys and eleven holds. On average, they assigned a price target of $317.53 for the Visa competitor.
Apple
By far the largest holding in Buffett’s portfolio in the third quarter of 2024 was the iPhone manufacturer Apple. According to TipRanks, analysts give the stock a moderate buy rating overall – Buy 19 times, Hold seven times and Sell three times. In their opinion, in twelve months they see the stock trading at an average of $244.77.
Conclusion
Analysts are largely optimistic about the shares in the old master’s portfolio – but with a few exceptions. However, investors should not forget that the analysts’ price targets are given on a twelve-month horizon. In contrast, Warren Buffett pursues a significantly longer investment horizon. “My favorite holding period is forever,” is a well-known quote from the stock market legend.
Editorial team finanzen.net
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