Warren Buffett's Top 3 Stocks: Portfolio Allocation To This Sector Increased In Q4
Portfolio Pulse from Surbhi Jain
Warren Buffett's Berkshire Hathaway increased its finance sector allocation to over 24% in Q4, up from 21.75% in Q3. The top three finance stocks in the portfolio are Bank of America, American Express, and Moody's, with respective portfolio weights of 9.03%, 8.18%, and 2.77%. Bank of America is seen positively by analysts, while American Express and Moody's have expected downside according to average one-year price targets.
February 26, 2024 | 8:16 pm
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NEGATIVE IMPACT
American Express holds an 8.18% allocation in Berkshire's portfolio but faces a potential -5.25% downside according to analysts.
Despite being a significant part of Berkshire's portfolio, the expected downside from analysts suggests a negative short-term impact on AXP's stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 85
NEGATIVE IMPACT
Moody's, with a 2.77% portfolio allocation, is above its 200-day moving average but faces a -14.41% downside according to analysts.
Although Moody's is performing well currently, the significant expected downside from analysts suggests a negative short-term outlook for MCO's stock.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Bank of America, with a 9.03% weight in Berkshire's portfolio, is viewed positively by analysts, indicating potential upside.
Given the bullish analyst ratings and its significant weight in Berkshire's portfolio, BAC is likely to see positive short-term price movement.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Berkshire Hathaway increased its finance sector allocation to over 24% in Q4, indicating a strategic shift towards financial stocks.
The increase in finance sector allocation reflects a strategic decision by Berkshire Hathaway, likely to influence investor perception positively towards BRK's stock.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100