Todd Campbell, Author at The Motley Fool Australia

Here are Warren Buffett's biggest stock picks

Todd Campbell — Mon, 23 Aug 2021 01:30:00 +0000

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

A unique ability to buy winning stocks has made Warren Buffett the sixth richest person on the planet. His past success and folksy wisdom has made him a household name and one of the most-watched investors in the world. Fortunately, following in his stock-picking footsteps doesn't require having his phone number on speed dial. Buffett's investment company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) files its holdings with the Securities and Exchange Commission every quarter and its latest report -- released this week -- reveals 76% of Berkshire Hathaway's $293 billion (yes, billion) portfolio is invested in just five stocks in three sectors.

Buffett's biggest position

Warren Buffett's single biggest position -- valued at a jaw-dropping $121.5 billion -- is Apple (NASDAQ: AAPL). The consumer electronics juggernaut is best known for its cutting-edge computers, smartphones, and tablets, but increasingly, it's profiting from its services segment. Although consumer electronics products still account for the lion's share of Apple's sales, product revenue is highly dependent on new device launches and holiday shopping trends, making consumer electronics revenue "lumpy" throughout the year. Devices are also a relatively low-margin business. However, Apple's services business, which includes the app store, provides it with high-margin, recurring revenue that's very profit- and dividend-friendly. Last quarter, services accounted for 21.5% of Apple's total revenue, up from 16% in the same quarter of 2017. The company's trailing-12-month net income has increased to $87 billion from less than $50 billion and its dividend payout has climbed to $0.88 per share from $0.63 per share over that period. So far, Berkshire Hathaway's unrealized profit on its Apple shares is nearly $90 billion, so it's been a big winner for Buffett. Importantly, there's little to suggest he'll sour on Apple. Apple's sitting on over $194 billion in cash plus marketable securities on its balance sheet and although it's already one of the world's biggest companies, it still delivered 36% year-over-year revenue growth in the quarter ending June 30, suggesting its products and services are still winning over consumers.

Betting on banks

Buffett has a penchant for easy-to-understand businesses, so it's unsurprising that two of his top five largest positions are Bank of America (NYSE: BAC) and American Express (NYSE: AXP), two financial institutions with a relatively simple business model: pocketing interest on loans. He owns $41.6 billion worth of Bank of America stock and $25 billion in American Express shares exiting June, making them his second- and third-biggest positions, respectively. Bank of America is the second-largest bank in the United States and the eighth-largest bank globally.Â It makes money in other ways, including via its capital markets and wealth management solutions, but most of its profit comes from charging interest on loans, including mortgages and credit cards, and fees associated with traditional banking accounts. Similarly, American Express makes money charging merchant transaction fees to retailers that accept American Express credit cards, but its main source of revenue is interest associated with small business borrowing and credit card use. Traditionally, banks like Bank of America and American Express are most profitable when the spread between their cost to borrow and interest rates charged to customers is wide. A low interest rate environment has made it harder to maximize that spread, known as net interest margin, but Bank of America and American Express are still producing earnings for shareholders. In 2020, Bank of America earned $1.87 per share and American Express earned $3.77 per share despite headwinds associated with a dramatic slowdown in economic activity caused by the COVID-19 shutdowns. In 2021, analysts estimate the companies' earnings will climb to $3.26 per share and $8.81 per share, respectively, because of rebounding GDP. If so, that should provide management even more wiggle room to increase dividend payouts, providing Buffett with additional incentive to hold onto his shares.

These businesses are tasty

Sticking to his keep-it-simple investing approach, two consumer staples companies round out Warren Buffett's five biggest holdings:Â Coca-Cola (NYSE: KO) and Kraft Heinz (NASDAQ: KHC). Coca-Cola and Kraft Heinz are among the most recognizable brands in the world. Coca-Cola owes its recognition to its self-named soft drink, but it's expanded its product lineup in recent years to benefit from evolving trends in consumer taste. For example, it insulated itself against consumers' shift away from sugary drinks by becoming one of the biggest players in bottled and sparkling water. It even launched a hard seltzer under its popular Topo Chico brand in 2020. Berkshire Hathaway's owned Coca-Cola shares since 1988 and it currently holds 400 million shares, making it Coca-Cola's single largest shareholder. Kraft Heinz was formed by the marriage of Kraft and Heinz in 2015. The combination created a food giant, but its performance has probably been bumpier than Buffett hoped. The steep price paid to merge the companies resulted in a goodwill writedown and dividend cut in 2019, and its $37 share price is down from a peak above $90 in 2017. Nevertheless, Buffett seems committed to remaining long his 325.6 million shares. Despite cutting its dividend, Kraft Heinz still provides Berkshire Hathaway with a relatively handsome 4.3% yield, and that's far better than the Oracle of Omaha can fetch in U.S. Treasuries.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Here are Warren Buffett's biggest stock picks appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Should you invest $1,000 in Apple right now?

Before you buy Apple shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Apple wasn't one of them.

The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See the 5 Stocks

* Returns as of 20 Feb 2026

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Todd Campbell owns shares of Apple and Bank of America. Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Moderna files for FDA approval of its COVID vaccine in teens

Todd Campbell — Fri, 11 Jun 2021 00:30:00 +0000

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

On Thursday, Moderna (NASDAQ: MRNA) announced it has filed for Emergency Use Authorization for its COVID-19 vaccine in adolescents from 12 to 18. If the agency gives Moderna a green light, parents will have another vaccine option beyond Pfizer (NYSE: PFE) and BioNTech's (NASDAQ: BNTX) vaccine, which was approved for ages 12 to 18 in May.

The coronavirus can be spread easily, and so far, over 174 million cases and 3.7 million deaths have been attributed to the disease worldwide.

Drugmakers including Moderna have developed vaccines to help prevent severe disease, and over the past few months, governments have made significant progress in vaccinating adult populations. For example, over 304 million COVID vaccine doses have been administered in the U.S., with 52% of Americans having received at least one dose.

The vaccination rate in children is lower, with only 23% of Americans under 18 having received at least one dose, but that rate should improve as more vaccines secure FDA approval. The agency expanded emergency use of Pfizer's COVID vaccine to include children over 12 last month, and a meeting of its advisory committee to discuss vaccinating adolescents is happening this week.Â

Investigators observed no COVID cases in Moderna's study of patients ages 12 to 18, and safety outcomes were similar to those for adults, suggesting the vaccine could win emergency approval soon.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Moderna files for FDA approval of its COVID vaccine in teens appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Should you invest $1,000 in BioNTech Se right now?

Before you buy BioNTech Se shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and BioNTech Se wasn't one of them.

The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See the 5 Stocks

* Returns as of 20 Feb 2026

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Todd Campbell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Moderna Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Pfizer says it could know if its COVID-19 vaccine candidate works in October

Todd Campbell — Mon, 14 Sep 2020 23:30:00 +0000

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Pfizer Inc (NYSE: PFE) is conducting one of the most advanced trials of a vaccine for COVID-19, and CEO Albert Bourla told an interviewer on Sunday that the drugmaker could know if its candidate is effective by the end of October.

The healthcare company is researching a slate of possible vaccines in partnership with BioNTech (NASDAQ: BNTX), and a phase 2/3 study evaluating its most advanced coronavirus vaccine candidate, BNT162b2, began in July. That trial is structured to include a total of 30,000 participants who will be given two doses of the vaccine, 21 days apart.

The assertion that the trial will have garnered enough data by the end of next month for the company to determine whether it's ready to seek emergency use authorisation from the Food and Drug Administration comes as the healthcare companies have requested permission to increase enrollment in it to as many as 44,000 people. That would allow them to include volunteers as young as 16 years old, as well as people with pre-existing viral infections such as HIV and hepatitis B and C.

If BNT162b2 proves sufficiently effective to earn a thumb's up from the FDA, Pfizer and BioNTech believe they'll be able to provide up to 100 million doses of it by the end of 2020, and up to 1.3 billion doses by the end of 2021. Previously, the companies signed agreements to supply up to 600 million doses to the United States and up to 200 million doses to the European Union beginning later this year. Also, a deal with Japan would see up to 120 million doses sent to that country in the first half of 2021.

Although Bourla's statement about the clinical trial timeline is encouraging, there are no guarantees that the timing won't shift, or that the vaccine will prove effective enough. Last week, the phase 3 study of AstraZeneca's rival COVID-19 vaccine candidate was placed on a temporary hold so that researchers could evaluate an isolated safety signal âa good reminder of the uncertainty associated with all such human trials.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Pfizer says it could know if its COVID-19 vaccine candidate works in October appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Should you invest $1,000 in BioNTech Se right now?

Before you buy BioNTech Se shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and BioNTech Se wasn't one of them.

The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See the 5 Stocks

* Returns as of 20 Feb 2026

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

Todd Campbell owns shares of Pfizer. His clients may have positions in the companies mentioned.Â The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.