Warren Buffett's Exceptional Stock Gains and the Magnificent Seven

Nov 18, 2024 at 12:44 PM
Warren Buffett, one of the most renowned investors, is currently reaping significant gains from a select group of seven stocks. These holdings stand in stark contrast to the typical stocks found in the S&P 500. An in-depth analysis by Investor's Business Daily reveals that Berkshire Hathaway's seven U.S.-listed holdings, such as Jefferies Financial, Liberty Live, and Nu Holdings, have all witnessed remarkable growth this year, with gains of 50% or more. In contrast, Berkshire Hathaway's additional positions in stocks like Amazon and Apple have not performed as strongly. Amazon is up only 33% while Apple has seen a modest increase of 16.8%.

Buffett's Success in the Financial Sector

This year, two of Buffett's top-performing stocks belong to the financial sector. The shares of Jefferies Financial have soared by 83%, emerging as Berkshire Hathaway's top performer. This outcome is not entirely unexpected as many financial stocks rallied following the election, fueled by hopes of regulatory easing. Jefferies stock has not only achieved significant growth but also boasts a remarkable 95 RS Rating. Additionally, its earnings are robust, earning it a perfect 99 Composite Rating. Analysts predict that the company's profit will jump by an impressive 169% this year.Another financial winner in Buffett's portfolio is Nu Holdings. The stock has gained 68% this year, propelling its RS Rating to 91. Analysts anticipate that the Brazilian digital bank's profit will rise by 97% in the coming year.

Discovering Unconventional Winners

While Nvidia is often in the spotlight, Liberty Live Group has been a hidden gem for Buffett. This year, Buffett has achieved a staggering 74% gain on Liberty Live Group's stock. It holds a significant position within Berkshire Hathaway, with Buffett owning nearly 20% of two classes of the entertainment company's stock. Such substantial gains may explain Buffett's waning enthusiasm for the Magnificent Seven. He currently owns only 0.1% of Amazon and continues to actively sell Apple. Now, the reasons behind these decisions become clear.

Berkshire Hathaway's Top Stocks This Year

CompanyTickerYTD changeJefferies Financial GroupJEF83.2%Liberty Live GroupLLYV.K74.9%Liberty Live GroupLLYV.A74.3%Nu HoldingsNU68.1%Louisiana-PacificLPX58.1%American ExpressAXP52.9%DaVitaDVA52.1%Sources: IBD, S&P Global Market Intelligence