Warren Buffett Portfolio (2024 Q2)
2min read 
In the second quarter of 2024, Warren Buffett significantly reduced his stake in Apple, decreasing his holdings from 39.7% to 23.0%. At the same time, he substantially increased his investment in American Express, raising his stake from 9.7% to 14.9%. Additionally, Buffett increased his investments in the Japanese market, particularly in Mitsubishi Corporation and Mitsui & Co. These changes reflect Buffett's reassessment and strategic adjustments across different industries and regional markets.
Analysis of Increased Holdings
American Express: The increased stake is based on its strong position in the financial services industry and solid financial performance. Despite a decline in stock price, the company's fundamentals remain robust, indicating potential for future growth.
JPMorgan Chase: The increase in holdings reflects Buffett's recognition of its leadership in the global financial market. JPMorgan's revenue and net profit exceeded expectations, demonstrating success in fintech investments, with anticipated further expansion of market share.
Analysis of Decreased Holdings
Apple: The significant reduction in Apple shares is due to concerns about the company's current valuation. While the market consensus rating remains buy, the current price target is only 6.94% higher, suggesting limited growth potential. Thus, reducing the stake helps lower dependency and risk.
Chevron: The reduction in Chevron shares reflects considerations of future uncertainties in the energy market. Although fossil fuels remain dominant, the long-term growth trend of renewable energy has prompted Buffett to adjust his energy investment portfolio.
Industry Analysis
The decrease in holdings in the information technology sector is primarily due to the reduction in Apple shares, reflecting concerns over high valuations and market volatility in this sector.
The increase in holdings in the financial services sector is based on confidence in the sector's stable growth and strong profitability, particularly in fintech investments.
Country Preferences
The increased investment in the Japanese market indicates Buffett's confidence in Japan's economic stability and the strategic position of Japanese companies in the global economy. Mitsubishi Corporation and Mitsui & Co. focus on addressing social challenges and considering natural capital, aligning with global sustainable development trends.
Summary
Buffett's portfolio adjustments demonstrate his nuanced approach to current market valuations, particularly with reductions in the technology and energy sectors and increases in financial services. This reflects his response to market volatility and preference for sectors with stable growth.
Opportunities
Financial Services Sector: The increased holdings reflect the sector's robust growth prospects, especially in the fintech domain.
Japanese Market: The increased investment highlights confidence in the strategic position and economic stability of Japanese companies, particularly their contributions to the global economy.
Risks
Information Technology Sector: The reduction in Apple shares may signal concerns about future growth and valuation in this sector.
Energy Sector: The reduction in Chevron shares reflects concerns about the future uncertainties of the fossil fuel market, especially amid the global shift towards renewable energy.