Bigfoot exists. If the eclipse doesn’t cast its shadow on February 2nd, spring will arrive early. Warren Buffett doesn’t like tech stocks.
At least one of the three earlier statements is an undisputed myth. Buffett doesn’t have the aversion to tech stocks that some people think he has. How can we know this for sure? About 43% of the buffet Berkshire Hathaway (BRK.A 0.01%) (BRK.B -0.57%) The portfolio is invested in these five technology stocks.
1. Apple
Apple (A.P.L 1.37%) It single-handedly dispels the myth about Buffett and tech stocks. It is by far Berkshire Hathaway’s largest equity holding. Including shares owned by Berkshire subsidiary New England Asset Management, Apple accounts for 38.4% of Berkshire’s total portfolio.
Don’t be surprised if that share is high. Buffett He bought more Apple shares in the first half of 2022 when the stock price is higher than it is now. Definitely one of the stocks to buy this year.
2. Taiwan Semiconductor Manufacturing
Buffett bought a boatload of chip giant stocks last year. As of the third quarter of 2022, Berkshire had no position. Taiwan Semiconductor Manufacturing (T.M.M -0.16%). Today it makes up 1.6% of Berkshire’s portfolio. That makes Taiwan Semiconductor the conglomerate’s ninth largest holding.
Solid wheels are always attractive to buffets. Taiwan Semi definitely has one. The company makes most of its advanced chips, whose client list includes Apple.
3. Activision Blizzard
Playing bridge is more up Buffett’s alley than playing. call of duty. But that didn’t stop the famous investor from buying major video game stock. Activision Blizzard (ATVI 1.34%) It comprises 1.3% of Berkshire’s portfolio, leaving the stock outside Berkshire’s top 10 holdings.
Berkshire previously held a position in Activision Blizzard. Microsoft He announced plans to acquire the game’s developer. However, that deal now appears to be on thin ice, with government regulators threatening to block the raid.
4. HP
H.P (HPQ 0.76%) It is Berkshire’s twelfth-largest holding, behind Activision Blizzard. The computer and printing solutions giant comprises 1% of Berkshire’s total portfolio.
That percentage includes shares owned by New England Asset Management. The Berkshire subsidiary seems particularly bullish on HP, whose stock makes up 7 percent of its investment portfolio.
5. Verisign
Only one other technology stock cracks Berkshire’s top 20. This Congress owns more than 12.8 million shares. Validator (VRSN 0.29%). The domain name registry service and internet infrastructure provider makes up 0.8% of Berkshire’s total portfolio, making it its 17th largest holding.
As mentioned earlier, Buffett likes strong mosquitoes. There is no doubt that he loves Verisign’s business. The company is the sole Internet registrar for all .com, .net and .name domain names and also provides registration services for other popular domain names. Verisign operates two of the world’s 13 Internet root servers.
These shares should be a large fraction yours A portfolio?
Just because Buffett owns these five tech stocks doesn’t mean every investor should. Your investment objectives may be completely different from his. That being said, there is something to like about each of these stocks.
Apple’s iPhone ecosystem seems unstoppable. As the company expands into virtual reality and virtual reality, it should have strong growth prospects.
The demand for chips, although variable, should increase steadily in the long term. That should bode well for Taiwan Semi’s fortunes.
Activision Blizzard may enter choppy waters over regulatory objections to Microsoft acquisition. However, the video game market should grow exponentially over the next ten years and beyond.
Investors who like reliable cash flow should continue to like Verisign. Income investors will no doubt love HP’s dividend yield of nearly 3.7%.
The bottom line is that these stocks can be good choices depending on your specific investment goals. Make your own decision — maybe while you’re looking for Bigfoot and waiting to see the shadow on the ground.
Keith Speights has positions in Apple and Berkshire Hathaway. He has a position in the Motley Fool and recommends Activision Blizzard, Apple, Berkshire Hathaway, HP, Taiwan Semiconductor Manufacturing and VeriSign. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 calls on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway and short March 2023 $11 calls on Apple. The Motley Fool has a disclosure policy.