Stocks are an inherently risky investment, and picking the right one is often quite difficult. However, with TipRanks Expert Center, retail investors can easily pick gems by following an expert. Our “Expert Spotlight Piece” today brings you the top three holdings of ace investor Warren Buffett. The CEO and Chairperson of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) continue to show confidence in Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), and Chevron (NYSE:CVX). Together, these three stocks account for about 60% of Buffett’s portfolio.
Buffett, who ranks #175 out of 468 hedge funds on TipRanks, also took new positions in three stocks in Q3. These are Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), Louisiana-Pacific (NYSE:LPX), and Jefferies Financial Group (NYSE:JEF). Buffett’s portfolio has gained 85.31% since 2013.
Apple Stock is the Largest Holding of Buffett
Apple stock accounts for 41.69% of Buffett’s portfolio. The stock has witnessed a pullback amid supply-chain issues, lower-than-expected demand for the iPhone 14, and production challenges due to the tighter COVID restrictions in China. While AAPL stock is down about 25% year-to-date, Buffett has maintained his holding in the stock.
Further, most of Apple’s challenges are transitory and will likely abate soon. Thus, this pullback could be a buying opportunity for investors.
Is Apple a Buy, Sell, or Hold Right Now?
Wall Street analysts are optimistic about Apple stock. It has 24 Buys and four Holds for a Strong Buy consensus rating on TipRanks. Further, analysts’ average price target of $179.33 implies a decent upside potential of 35.48%.
Buffett Maintains His Holdings in BAC Stock
Shares of the financial services giant Bank of America are down over 26% year-to-date. While a higher interest rate environment is good for banks, aggressive rate hikes amid high inflation and uncertainty dragged bank stocks lower.
Nevertheless, the easing of inflation and an expected slowdown in the pace of rate hikes will likely support BAC stock.
Is Bank of America a Buy Right Now?
Bank of America stock commands a Moderate Buy consensus rating on TipRanks. It has received seven Buy and five Hold recommendations. Moreover, these analysts’ average price target of $39.82 implies 24.20% upside potential.
Buffett Ups Stake in Chevron Stock
Buffett increased his holdings in Chevron stock in Q3 by 2.43%. CVX stock has outperformed the broader market averages in 2022, reflecting higher realized prices for crude and natural gas liquids. Thanks to the favorable operating environment, CVX strengthened its balance sheet, aggressively reduced its debt, and enhanced shareholders’ returns through share buybacks and solid dividend payments.
What is the Price Target for CVX Stock?
Wall Street analysts have an average price target of $187.69 for CVX stock, implying an upside potential of 10.48%. Meanwhile, CVX stock has received five Buy, six Hold, and two Sell recommendations for a Hold consensus rating on TipRanks.
Ending Thoughts
Investors may follow Warren Buffett’s views to make informed investment decisions. Similarly, they could follow other experts, including Wall Street analysts, corporate insiders, hedge fund managers, financial bloggers, and individual investors. TipRanks accumulates the recommendations and views of these Top Experts, which can be considered while investing to maximize returns.
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