Warren Buffett has nearly $150 billion invested in this stock (hint: it’s not Apple)

Where does Warren Buffett invest? This is a question that many investors commonly ask to get ideas on where to put their money.

That’s not necessarily a bad strategy, given the tremendous success Buffett has achieved over the years. So where is Buffett investing these days? He has nearly $150 billion invested in a single stock — and it’s not Apple (AAPL 1.16%).

Buffett’s (almost) $150 billion in stocks

A quick look at Berkshire Hathawayhis (BRK.A -1.17%) (BRK.B -1.27%) will reveal that Apple remains the conglomerate’s largest single stock. Berkshire owns 400 million shares of the consumer tech giant worth about $87.4 billion.

Apple isn’t where Berkshire has the most money invested, though. This distinction belongs to the US Treasury. At the end of the second quarter of 2024, Berkshire’s investments in Treasuries totaled $238.7 billion.

But neither Apple nor US Treasuries rank as a top holding in Buffett’s personal portfolio. It’s no secret where the legendary investor has the most money invested. Buffett’s money is mainly in Berkshire Hathway.

As of March 6, 2024, the date of Berkshire’s last DEF 14A regulatory filing, Buffett owned 216,637 shares of Berkshire Hathaway Class A stock and 344 shares of Class B stock. His combined position in the two stocks is worth $148.8 billion at the time of writing this article.

Why it makes sense to have most of your eggs in one basket

Some investors would be mortified to have so much money tied up in one stock. However, I think Buffett’s huge investment in Berkshire Hathaway makes sense.

He once stated, “Diversification is a safeguard against ignorance.” Buffett’s idea was that if you have a deep understanding of a particular business, investing more in it can be to your advantage.

Having most of his eggs in the Berkshire Hathaway basket has worked exceptionally well for Buffett. Between 1964 and 2023, Berkshire posted a global gain of 4,384,748%, compared to 31,223% for S&P 500.

Buffett certainly has a deep understanding of Berkshire. He controlled the company from 1965 and served as CEO from 1970. During his tenure at the top, Berkshire became one of the largest corporations in the world.

Should you also own Berkshire Hathaway stock?

Berkshire Hathaway likely won’t outperform the S&P 500 as easily as it has in the past. But I think the stock remains an excellent choice for investors whose last name isn’t Buffett.

Importantly, buying Berkshire Hathaway stock offers a surprising amount of diversification. The conglomerate owns stakes in more than 40 publicly traded companies spanning multiple industries, with Apple, American Express, Bank of America, Coca colaand Chevron ranking the most important actions.

However, Berkshire’s diversification is not limited to its holdings. The company’s more than 60 subsidiaries also operate in a wide range of industries, including building materials, insurance, manufacturing and retail.

If you’re looking for a stock that should be well-positioned if the stock market takes a dive, Berkshire could be a perfect fit. Buffett has been hoarding cash because he can’t find enough stocks to buy at attractive valuations. As previously mentioned, Berkshire has $238.7 billion in US Treasuries. It also has $42.3 billion in cash and cash equivalents. If the market pulls back significantly, expect Buffett to come in and use this massive stash of cash to buy the stock of well-run companies at a discount.

Berkshire Hathaway’s valuation isn’t too frothy. The stock trades at a forward earnings multiple of 19.8. While it might be a little higher than Buffett would prefer, Berkshire still used $2.9 billion to fund share buybacks in the first half of 2024. The answer to our initial question about where Buffett invests is mostly in Berkshire Hathaway.