Billionaire investor Warren Buffett has a huge following in the investment world. Many investors often imitate Buffett’s choices, knowing that the investments he chooses for his portfolio have solid fundamentals and are good long-term investments. The top 3 stocks are berkshire hathaway Today’s portfolio is apple (NASDAQ:AAPL), american bank (NYSE:BAC)and american express (NYSE:AXP). Here’s what would have happened if he invested $10,000 in each ten years ago.
Apple stock: 887% return
Apple is Berkshire Hathaway’s top holding in its portfolio, accounting for approximately 41% of its portfolio. The next largest stock (Bank of America) has a share of less than 11%. Buffett is a big fan of Apple’s business, and it’s hard not to like a company with such a loyal customer base.
In each of the past three fiscal years (Apple’s fiscal year ends in September), the company has achieved at least $100 billion in profit before tax. And it has generated at least $365 billion in revenue during that time. The company generates big profits from its iPhones and iPads, and with more than 2 billion active Apple devices, it has a huge user base that could potentially upsell more products and services. Exists.
Apple’s stock price has struggled this year, but if you invested $10,000 in its stock 10 years ago, your investment would be worth $10,000 today. dividend.
Bank of America: 180% return
Berkshire’s next largest holding is Bank of America. Although it’s a far cry from second place, it’s still a noteworthy investment. Buffett loves bank stocks and insurance companies, so it’s no surprise that Bank of America is one of his top holdings. The company is one of the top banks in the country and one of the safest stocks an investor can have in their portfolio.
Bank of America has generated impressive profits, with net income of about $25 billion or more in each of the past three years, and revenue for that period increasing from $89 billion to just under $99 billion over the past year. .
Buffett has long been a believer in betting on America, and there are few better ways to invest in the economy than owning stocks in top banks. Even now, Bank of America’s stock price is just 1.1 times book value, making it an attractive stock to own, especially considering its 2.6% dividend yield.
Bank of America is growth machine Even though Apple has performed well over the past decade, they still would have made nearly three times as much money here. Including dividends, his $10,000 investment in bank stocks 10 years ago is now worth about $28,000.
American Express: 209%
Buffett loves financial stocks, and Berkshire’s portfolio includes all three major credit card companies. However, American Express ranks higher. visa and master Card. One reason for this is likely that their customer base is more affluent. As in the case of Apple, these types of customers are less sensitive to deteriorating economic conditions, as they may be in a better financial position to cope with the effects of rising inflation.
American Express has experienced impressive growth in recent years as cardmember spending reaches record levels. Last year, Amex reported $60.4 billion in revenue, which was a 15% increase over the previous year and a 40% increase over 2021’s $43.1 billion. The company also generates a strong 2x profit, with 2023 net income totaling $8.3 billion. -Digit profit margins.
Amex’s business performance hasn’t slowed down, and its stock price hasn’t stagnated either. If he invested $10,000 in this business 10 years ago, that investment is now worth nearly $31,000 (including dividends) and has slightly outperformed Bank of America over that period. .
If you invested $30,000 in these three stocks 10 years ago, you would have earned $128,000. This is largely due to Apple’s profits. But all of these stocks have been incredible investments over the years, and with strong financials and continued opportunities for further growth, there’s every reason to remain bullish for now.
Should you invest $1,000 in Apple right now?
Before buying Apple stock, consider the following:
of Motley Fool Stock Advisor Our analyst team has identified what they believe Best 10 stocks What investors can buy right now…and Apple wasn’t among them. These 10 stocks have the potential to generate impressive returns over the next few years.
when to think about it Nvidia This list was created on April 15, 2005…if you invested $1,000 at the time of recommendation. you have $537,557!*
stock advisor provides investors with an easy-to-understand blueprint for success, including guidance on portfolio construction, regular updates from analysts, and two new stocks each month.of stock advisor For the service more than 4 times The resurgence of the S&P 500 since 2002*.
*Stock Advisor will return as of April 22, 2024
Bank of America is an advertising partner of The Motley Fool’s Ascent. American Express is an advertising partner of The Ascent, a Motley Fool company. david jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool recommends long January 2025 $370 calls on Mastercard and short January 2025 $380 call options on Mastercard. The Motley Fool has Disclosure policy.
If you invested $10,000 in Warren Buffett’s top three stocks 10 years ago, you would have this much money today Originally published by The Motley Fool
