Apple (AAPL) is Buffett’s largest publicly traded holding, representing around 40% of Berkshire’s portfolio by market value.
In the latest earnings conference call, management revealed that the company’s active installed base has surpassed two billion devices.
While competitors offer cheaper devices, millions of users don’t want to live outside of the Apple ecosystem. The ecosystem acts as an economic moat, allowing the company to earn oversized profits.
The company is returning some of that profits to shareholders through buybacks. In the quarter ended Dec. 31, 2022, Apple spent $19.48 billion on share repurchases.
Given the amount of cash that the tech gorilla has, more buybacks could be on the way. At the end of December, Apple’s cash, cash equivalents, and marketable securities totaled $165.45 billion.
Read more: Rich young Americans have lost confidence in the stock market — and are betting on these 3 assets instead. Get in now for strong long-term tailwinds
Meet Your Retirement Goals Effortlessly
The road to retirement may seem long, but with WiserAdvisor, you can find a trusted partner to guide you every step of the way
WiserAdvisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.Get Started
American Express (AXP) is the fourth-largest holding at Berkshire Hathaway. Owning 151.6 million shares of AXP, Berkshire’s stake is worth around $26.3 billion.
The company stands to benefit in an inflationary environment.
American Express makes most of its money through discount fees — merchants are charged a percentage of every Amex card transaction. As the price of goods and services increases, the company gets to take a cut of larger bills.
In Q4 of 2022, the company repurchased 4 million of its common shares, reducing the number of shares outstanding from 747 million to 743 million.
Buffett highlighted what American Express and Apple have been doing in the shareholder letter.
“At Apple and Amex, repurchases increased Berkshire’s ownership a bit without any cost to us.”
Chevron (CVX) is one of the big oil companies that gushed huge profits last year.
The company reported earnings of $35.5 billion for 2022, which represented a 127% increase from 2021. Sales and other operating revenues totaled $235.7 billion for 2022, up 51% year over year.
In January, Chevron’s board approved a 6% increase to the quarterly dividend rate to $1.51 per share. The board also approved a new $75 billion stock buyback program.
In 2022, Chevron repurchased nearly 70 million shares for $11.25 billion.
President Biden may not like these numbers, but Buffett probably won’t mind.
According to an SEC filing, Berkshire owned $29.3 billion of the energy giant at the end of December, making it the third-largest public holding of the company.
Stop overpaying for home insurance
Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.
SmartFinancial can help you do just that. SmartFinancial’s online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.Explore better rates
What to read next
- You could be the landlord of Walmart, Whole Foods and CVS (and collect fat grocery store-anchored income on a quarterly basis)
- Americans are paying nearly 40% more on home insurance compared to 12 years ago — here's how to spend less on peace of mind
- The US dollar has lost 98% of its purchasing power since 1971 — invest in this stable asset before you lose your retirement fund
Follow These Steps if you Want to Retire Early
Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.
Zoe Financial is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.