Top 10 Holdings of the Top 5 Money Managers

Want to know what the top money managers are betting on these days? Now you can, thanks to Securities and Exchange Commission (SEC) requirements that large holding companies and professional investors regularly report their holdings. While a consensus choice, even from the best and brightest, does not guarantee success in the marketplace, it does have some advantages.

For one thing, the largest (and most successful) holding companies tend to invest for the long term, often recognizing the potential of companies that others don’t see. A stock that has a high percentage of institutional ownership, for example, tends to reflect intense professional research.

While there is no foolproof method or formula for deciding who the best money managers are, investor dollar votes speak volumes. Below is a list of portfolios from some of the largest portfolio companies in the industry, from their legendary investors who have become household names (hint: “Buffett”) to some of the most famous mutual funds in the world. For the sake of clarity, this list only has “long” investment strategies and avoids analyzing hedge fund holdings.

Key takeaways

  • Most of the holdings listed below are household names, from tech companies to banks to consumer products.
  • No matter what holdings are in a specific money manager’s portfolio from year to year, no single share represents more than 3% or 4% of these funds.
  • To apply these investing principles to your own life, stick with a broad base of diversified stocks, bonds, and funds.

Warren Buffett’s Berkshire Hathaway (various)

It really needs no introduction. Warren Buffett has been making money since before most of us were born. Although he doesn’t manage a typical mutual fund, his parent company, Berkshire Hathaway, has billions of dollars invested in a portfolio of stocks. Those holdings of company stock represent one of the largest mutual funds in the world. With Buffett, investors know they get the added benefit of his direct and knowledgeable purchases of companies, his insightful dialogues with investors, and the general glances at his brain and investment process.

Berkshire Hathaway’s Top 10 Holdings (In No Particular Order)

  • Visa Inc. (V)
  • Verizon Communications (VZ)
  • The Coca-Cola Company (KO)
  • Johnson and Johnson (JNJ)
  • Procter & Gamble Company (PG)
  • AbbVie Inc. (ABBV)
  • The Kroger Co. (KR)
  • Bristol-Myers Squibb Company (BMY)
  • Wells Fargo & Company (WFC)
  • General Motors Co (GM)

By examining this list, you can see that Buffett generally likes the market leaders in industries like pharmaceuticals and consumer products. This is a good backbone for any long-term portfolio, as Buffett’s crushing market performance suggests.

Bruce Berkowitz Fairholme Fund (FAIRX)

As the lead manager of the Fairholme Fund and previously named National Equity Fund Manager of the Decade by Morningstar, Berkowitz considers himself a disciple of Buffett’s investment style, who seeks deep values ​​and wide margins of safety when choosing stocks.

Fairholme Fund Top 10 Holdings (In No Particular Order)

  • The St. Joe Company (JOE)
  • Fidelity Investments Money Market Treasury Only (FISXX)
  • Fannie Mae PFD (FNMAS)
  • Imperial Metals Corp (IPMLF)
  • Federal Home Mortgage Loan Corporation (FMCKJ)
  • United States Treasury Bills 0.08%
  • United States Treasury Bills 0.02%
  • United States Treasury Bills 0.17%
  • United States Treasury Bills 0.02%
  • United States Treasury Bills 0.05%

While Mr. Berkowitz is currently on the board of directors of St. Joe Company, a real estate and land development company, he also has significant investments in the banking and finance categories. Freddie Mac and Fannie Mae also have large stakes in his investment portfolio, and he buffers the rest with consumer products (especially food and beverages) like the Anheuser-Busch and Royal Caribbean cruise lines.

The Growth Fund of America by American Funds (AGTHX)

This is the largest national fund in America, so the name seems justified for this behemoth. The fund is managed by a team of experienced managers and seeks to provide consistent capital growth. Dividends and income are secondary concerns, but while they play a role in the overall investment process, the focus is more on companies that dedicate their capital to increasing income and profits.

Growth Fund of America’s Top 10 Holdings (in no particular order)

  • Facebook (FB)
  • Inc (AMZN)
  • Microsoft Corp (MSFT)
  • Alphabet Inc Class C (GOOG)
  • Netflix (NFLX)
  • Tesla (TSLA)
  • Broadcom Inc (AVGO)
  • Capital Group Central Cash Fund (CMQXX)
  • Alphabet Inc A (GOOGL)
  • UnitedHealth Group Inc (UNH)

The pursuit of this long-term growth fund (in the large-cap category) has led him to bet on tech leaders like Facebook, Amazon, and Google. In fact, more than a quarter of its total net assets are in the technology sector, followed by consumer services, healthcare and finance.

Loyalty Fund (FCNTX)

The Fidelity brand is one of the most recognized in all of finance, and its Contrafund seeks to find companies that are not “loved” by major investors or whose value has not been properly assessed by Wall Street. The five-star fund has more than $ 142 billion in assets, making it one of the largest holding companies, and it has closely followed, if not outperformed, the S&P 500 for the past five years.

Top 10 Fidelity Contrafund Holdings (In No Particular Order)

  • Facebook (FB)
  • Inc (AMZN)
  • Inc (CRM)
  • Apple Inc. (AAPL)
  • Microsoft Corp (MSFT)
  • UnitedHealth Group Inc (UNH)
  • Berkshire Hathaway Inc A (BRK.A)
  • Alphabet Inc. Cl. A (GOOGL)
  • Alphabet Inc. Cl. C (GOOG)
  • NVIDIA Corporation (NVDA)

By now, you will notice how Buffett’s Berkshire Hathaway fund appears on various lists. It seems that even the experts at picking individual stocks are not above investing in someone else’s holding companies that they trust and respect. The Contrafund also relies heavily on tech stocks, especially more established institutions like Facebook, Microsoft, and Apple, among others.

Dodge & Cox Stock Fund (DODGX)

This perennial fund of stars has been around since 1965, consistently earning solid returns and earning new assets. Income is a secondary consideration for the strong growth of its equity investments, and the low 18% annual turnover shows that the management team aims to stay long-term.

Dodge & Cox Stock Fund Top 10 Holdings (in no particular order)

  • Wells Fargo & Co (WFC)
  • MetLife (MET)
  • FedEx Corp (FDX)
  • HP (HPQ)
  • Charles Schwab Corp (SCHW)
  • Capital One Financial Corp (COF)
  • Sanofi (CUT OFF)
  • Alphabet, Inc. (GOOG)
  • Cigna (CI)
  • Comcast Corp, Class A (CMCSA)

With the exception of Alphabet, tech stocks are remarkably rare on this holding company’s list. Instead, Dodge & Cox managers are targeting companies like MetLife and Sanofi, along with a healthy dose of financial services and banks like Capital One, Charles Schwab and Wells Fargo.

Threads and common traits

Generally, no single stock represents more than 3% or 4% of these funds, no matter how much managers like the shares. This principle is what diversification is all about, and you should be sure to follow it in your own investment life. No matter how big a company is, there are risks that could cause stocks to drop suddenly or take much longer to reach their potential than you expected.

Stick with a broad base of stocks, bonds, and diversified funds. The important thing is to invest: to be a participant in the game and not just a spectator.

You have probably also heard of most of the companies in the portfolios of these holding companies. It’s even more proof that you don’t have to invest in some strange entity you’ve never heard of to make money. Research and learn about the companies you love and the products and services you use in your daily life. Chances are, if they are successful enough to be known, their finances will reflect it as well.

The bottom line

Armed with real data on the holdings of the world’s largest portfolio companies, any investor can start building their own investment portfolios. Add your own experience and unique perspective, and you’re on your way to building a profitable portfolio that’s not a burden to maintain, but fun to build and watch grow.

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About the author

Mark Holland

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