Dear Reader,
Today I want to go over Buffett’s portfolio…
Buffett filed his federal filings with the SEC to show his portfolio positions, etc.
It always makes for interesting reading to see what the best investor in American history is doing.
So I want to go over it quickly with you.
There are a few investors I follow – very savvy, old-school value guys that really give you an idea of where the market is.
So I always like to read their filings, and Buffett is the first on the list.
These filings tell you what they did in the fourth quarter of 2024 – October through December.
Buffett is still a net seller.
He sold about $6 billion worth of stocks last quarter.
If you look at last year, he bought about $5.8 billion worth of stocks, and sold $133 billion worth.
So he’s obviously finding very little to buy in a stock market trading at record levels. There are a couple; I’ll tell you about them in a minute.
The big things he was selling in Q4 were Bank of America and Citibank because of interest rates, and his stake in Apple, which he famously held and then sold earlier in 2024, was left unchanged.
Interestingly, he bought a couple of stocks.
One of them is Constellation Brands.
This is the stock that owns Budweiser and tanked from $270 to $160 after they came out with this transgender person drinking Budweiser commercial – talk about misunderstanding your customer base.
That’s going to go down as a case study in business schools on how to insult your customer base.
So the Budweiser fiasco sent that stock down almost 50%.
And Buffett’s clearly betting that the stock is cheap.
But you can see why overall he’s selling stocks…
You know, we’re at a stage where crypto is very high, meme stocks have come back – Blackberry, GameStop, and even one of my favorite stocks, Palantir. It’s just unbelievable.
When you look at the Mag 7 and what they’re selling for, we see Amazon trading at 3.75x sales, NVIDIA trades at 30x sales, Google trades at 6.5x sales, Microsoft and Meta each trade at 11x sales, Apple trades at 9.42x sales…
And Palantir trades at 93x sales!
I mean, it has a $271 billion market cap with a $3.2 billion in sales.
That is expensive.
We’re also seeing options trading hit records not seen since 1978.
So, it’s a very frothy market we find ourselves in.
It pays to be careful.
This is your “don’t drink and drive” warning from me.
I have to give you one once or twice a week – I don’t know why; it’s just in my nature.
Maybe I’m getting old and cranky.
But I will tell you about one stock Buffett’s been a huge buyer of…
It’s a small-cap company he’s bought 112 million shares of, and he just added to his stake.
He now owns 35% of the company.
This is a company we’ve recommended in Takeover Targets for our members, and I want to tell you why this company’s so special.
It’s basically an “in your face” monopoly that most people aren’t aware of, even though it stares them in the face on their commute every morning.
I love companies that are monopolies like that – that basically you don’t even realize that those things are right under your nose.
And we think it’s a big, big takeover target.
Because it’s the cheapest monopoly I’ve ever seen on the stock market.
And this company’s free cash flow is outrageous…
As a percentage of market cap it blows away Starbucks, Coca-Cola, Microsoft, Google…
I’ve never in my life seen a company with a near-monopoly in a market segment sell this cheaply.
This is why Buffett owns so much of it and just keeps buying.
I highly recommend this company. You can join Takeover Targets right here and get immediate access to make this trade today.
“The Buck Stops Here,”
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