11 Best Performing Warren Buffett Stocks in 2023
In this article, we discuss 11 best performing Warren Buffett in 2023. If you want to skip our discussion on Buffett’s investment journey, head directly to 5 Best Performing Warren Buffett Stocks in 2023.
Warren Buffett’s Berkshire Hathaway achieved a new record with its cash reserves reaching $157.2 billion, driven by elevated interest rates and a lack of prominent investment opportunities. Berkshire revealed on November 10 that this cash pile, primarily invested in short-term treasuries, exceeded the previous record set two years ago. Additionally, Berkshire reported operating earnings of $10.76 billion, indicating an increase compared to last year. This was attributed to the impact of higher interest rates on the cash reserves and profitability in its insurance businesses. Buffett, finding dull investment avenues in the market, focused heavily on share repurchases in Q3 instead.
In the third quarter of 2023, Buffett completed $1.1 billion worth of share buybacks, putting his total repurchases around $7 billion at the end of September. Keeping in mind investment and derivatives losses, the hedge fund posted a Q3 loss of approximately $12.8 billion, which was mainly explained by losses in its equity portfolio. However, Buffett advises investors to consider factors beyond investment gains or losses, noting that these figures can be potentially misleading due to accounting rules.
Don't Miss: Warren Buffett and Corporate Insiders Love These Stocks
Earlier this year, Warren Buffett increased his investments in five Japanese trading houses, drawing praise from Chamath Palihapitiya, who referred to him as "the GOAT." The companies – Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo – share a conglomerate structure similar to Berkshire Hathaway. They have a history of stable dividend payments and earnings growth. Palihapitiya admired the brilliance of Buffett's trade, observing his ability to hedge currency risk by selling Japanese debt and profiting from the difference between investment dividends and bond coupon payments.
Additionally, Buffett continues to rely on his largest investment, Apple Inc. (NASDAQ:AAPL), which constitutes half of Berkshire's equity portfolio. Buffett sees Apple as a consumer products company, and he is drawn to its substantial buyback programs. The Berkshire investment in Apple Inc. (NASDAQ:AAPL) has generated over $100 billion in gains since 2016. On the other hand, Berkshire Hathaway has trimmed its Chevron Corporation (NYSE:CVX) position for four consecutive quarters. Despite the divestment, Chevron remains the fifth-largest equity holding for Berkshire, valued at $18.5 billion. However, Berkshire increased its stake in Occidental Petroleum, demonstrating Buffett’s continued interest in the energy sector.
Some of the best performing Warren Buffett stocks in 2023 include Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and D.R. Horton, Inc. (NYSE:DHI).
Our Methodology
We selected the best performing stocks from Warren Buffett’s Berkshire Hathaway portfolio in the third quarter of 2023 based on year-to-date share price performance. We have assessed the hedge fund sentiment toward each stock from Insider Monkey’s database of 910 elite hedge funds tracked as of the end of the third quarter of 2023. The following stocks are arranged in ascending order of the share price performance as of November 26, 2023.
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Best Performing Warren Buffett Stocks in 2023
11. Atlanta Braves Holdings, Inc. (NASDAQ:BATRA)
YTD Share Price Performance as of November 26: 22.69%
Berkshire Hathaway’s Stake Value: $7,990,835
Atlanta Braves Holdings, Inc. (NASDAQ:BATRA) owns and manages a professional baseball team. Additionally, it oversees a diverse development initiative, encompassing retail, office spaces, hotels, and entertainment ventures. The company has its headquarters in Englewood, Colorado. Atlanta Braves Holdings, Inc. (NASDAQ:BATRA) is a new addition in Warren Buffett’s portfolio. He purchased 223,645 shares valued at nearly $8 million in Q3 2023.
On November 3, Atlanta Braves Holdings, Inc. (NASDAQ:BATRA) reported a Q3 non-GAAP loss per share of $0.10. The revenue increased 11% compared to the prior-year quarter, reaching $272 million. It exceeded Wall Street estimates by $3.2 million.
According to Insider Monkey’s third quarter database, 37 hedge funds held stakes in Atlanta Braves Holdings, Inc. (NASDAQ:BATRA), compared to 29 funds in the last quarter.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and D.R. Horton, Inc. (NYSE:DHI), Atlanta Braves Holdings, Inc. (NASDAQ:BATRA) is one of the best performing Warren Buffett stocks in 2023.
10. Floor & Decor Holdings, Inc. (NYSE:FND)
YTD Share Price Performance as of November 26: 27.46%
Berkshire Hathaway’s Stake Value: $432,590,000
Floor & Decor Holdings, Inc. (NYSE:FND) is a multi-channel specialty retailer and commercial flooring distributor. The company provides a wide range of flooring products, including tile, wood, laminate, vinyl, and natural stone, along with decorative accessories, wall tiles, and installation materials and tools. It is one of the best performing Warren Buffett stocks this year. Buffett owns 4.78 million shares of Floor & Decor Holdings, Inc. (NYSE:FND) worth $432.6 million.
On November 2, Floor & Decor Holdings, Inc. (NYSE:FND) reported a Q3 GAAP EPS of $0.61, beating Wall Street estimates by $0.05. However, the revenue of $1.11 billion fell short of market consensus by $10 million.
According to Insider Monkey’s third quarter database, 37 hedge funds were long Floor & Decor Holdings, Inc. (NYSE:FND), compared to 36 funds in the last quarter.
Madison Mid Cap Fund made the following comment about Floor & Decor Holdings, Inc. (NYSE:FND) in its Q3 2023 investor letter:
“The bottom five detractors for the quarter were Dollar Tree, MKS Instruments, CarMax, Floor & Decor Holdings, Inc. (NYSE:FND), and Liberty Media- Formula One. Headwinds in the housing market have caught up to Floor & Décor, and sales and profits have started to weaken, sending the shares lower.”
9. Moody's Corporation (NYSE:MCO)
YTD Share Price Performance as of November 26: 31.07%
Berkshire Hathaway’s Stake Value: $7,799,843,711
Moody's Corporation (NYSE:MCO) is a global integrated risk assessment firm with two main segments – Moody's Investors Service and Moody's Analytics. The Investors Service segment publishes credit ratings and assessment services for debt obligations, while the Analytics segment develops products and services supporting risk management activities in financial markets, offering subscription-based research, data, analytical tools, economic research, and learning solutions. Moody's Corporation (NYSE:MCO) has consistently featured on Warren Buffett’s portfolio since 2011. In Q3 2023, the billionaire owned a $7.8 billion stake in Moody's Corporation (NYSE:MCO).
On October 25, Moody's Corporation (NYSE:MCO) declared a quarterly dividend of $0.77 per share, in line with previous. The dividend is payable on December 15, to shareholders of record on November 24. The company declared a dividend of $0.77 for the next four quarters.
According to Insider Monkey’s third quarter database, 58 hedge funds were long Moody's Corporation (NYSE:MCO), compared to 60 funds in the preceding quarter. Chris Hohn’s TCI Fund Management held a prominent stake in the company, comprising 10.3 million shares worth $3.2 billion.
Akre Focus Fund made the following comment about Moody’s Corporation (NYSE:MCO) in its second quarter 2023 investor letter:
“The Fund owns many businesses that stand to benefit enormously from A.I. Moody’s Corporation (NYSE:MCO) recently announced a new strategic partnership with Microsoft to leverage A.I. into its global risk assessment products and their development. The top five positive contributors to performance during the quarter were Moody’s, Mastercard, CoStar, Constellation Software, and Adobe.”
8. DaVita Inc. (NYSE:DVA)
YTD Share Price Performance as of November 26: 32.63%
Berkshire Hathaway’s Stake Value: $3,412,114,232
DaVita Inc. (NYSE:DVA) offers kidney dialysis services to individuals with chronic kidney failure in the United States. It operates kidney dialysis centers and provides associated laboratory services in outpatient dialysis centers. It is one of the best performing Warren Buffett stocks in 2023. Buffett owns 36 million shares of DaVita Inc. (NYSE:DVA) valued at $3.4 billion as of Q3 2023.
On November 7, DaVita Inc. (NYSE:DVA) reported a Q3 non-GAAP EPS of $2.85 and a revenue of $3.12 billion, exceeding Wall Street consensus by $0.81 and $100 million, respectively.
According to Insider Monkey’s third quarter database, 32 hedge funds were bullish on DaVita Inc. (NYSE:DVA), compared to 30 funds in the prior quarter.
Moon Capital made the following comment about DaVita Inc. (NYSE:DVA) in its Q4 2022 investor letter:
“During the fourth quarter, we purchased shares in DaVita Inc. (NYSE:DVA), a dialysis center operator. For those unfamiliar, kidney dialysis involves the critical removal of toxins, fluids and salts from the blood by artificial means. Roughly 500,000 patients receive kidney dialysis in the U.S., which requires a 3.5-hour treatment three times a week. The only alternatives to the treatments are a kidney transplant or potential fatality. Given the critical nature of its services, demand has little correlation with the overall economy, resulting in a highly recession resistant business.
The U.S. dialysis industry is highly concentrated, with two companies (DaVita and its competitor Fresenius) controlling a combined 80% of the $25 billion market. The dominance of this duopoly provides massive scale advantages, making it incredibly difficult for new entrants to gain profitable market share.
In the past, DaVita’s valuation has been penalized (we view unfairly) because the company generates a significant portion of its operating income from a small percentage of its patients. Of DaVita’s 200,000 patients, approximately 90% qualify for Medicare (or Medicaid), with the remaining 10% covered by a commercial insurance provider. While commercial insurers pay an average of $1,000 per treatment, the federal government’s pay rate for Medicare and Medicaid is only $275 – which is actually less than what it costs DVA to provide the treatment…”(Click here to read the full text)
7. NVR, Inc. (NYSE:NVR)
YTD Share Price Performance as of November 26: 34.99%
Berkshire Hathaway’s Stake Value: $66,264,190
NVR, Inc. (NYSE:NVR) is an American homebuilder operating through Homebuilding and Mortgage Banking segments. The company is involved in constructing and selling single-family detached homes, townhomes, and condominium buildings under the names Ryan Homes, NVHomes, and Heartland Homes. As of the third quarter of 2023, Warren Buffett owns 11,112 shares of NVR, Inc. (NYSE:NVR) valued at $66.2 million. It is one of the best performing Buffett stocks this year.
On November 7, NVR, Inc. (NYSE:NVR) authorized a stock buyback of up to $750 million with no specified expiration date. This approval aligns with the company's ongoing strategy to enhance shareholder value. As of November 8, 2023, NVR, Inc. (NYSE:NVR) had 3,184,957 shares outstanding.
According to Insider Monkey’s third quarter database, 35 hedge funds were bullish on NVR, Inc. (NYSE:NVR), compared to 41 funds in the earlier quarter. Ric Dillon’s Diamond Hill Capital is the leading position holder in the company, with 91,962 shares valued at $548.3 million.
Diamond Hill Capital Mid Cap Strategy made the following comment about NVR, Inc. (NYSE:NVR) in its Q2 2023 investor letter:
“Other top contributors included Parker-Hannifin Corporation, Allegiant Travel, NVR, Inc. (NYSE:NVR). Leisure-focused low-cost airline Allegiant Travel has a unique business model, contributing to among the highest margins versus competitors. As travel demand has normalized against a post-pandemic backdrop, Allegiant has benefited from strong pricing.”
6. Lennar Corporation (NYSE:LEN)
YTD Share Price Performance as of November 26: 38.76%
Berkshire Hathaway’s Stake Value: $15,597,436
Lennar Corporation (NYSE:LEN) is a homebuilder that has divided its operations into Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. The company specializes in the construction and sale of single-family attached and detached homes, along with the purchase, development, and sale of residential land. Warren Buffett holds a $15.6 million stake in Lennar Corporation (NYSE:LEN) as of the third quarter of 2023.
According to Insider Monkey’s third quarter database, 63 hedge funds were bullish on Lennar Corporation (NYSE:LEN), compared to 66 funds in the preceding quarter. Edgar Wachenheim’s Greenhaven Associates is the largest stakeholder of the company, with approximately 9 million shares worth $1 billion.
Like Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and D.R. Horton, Inc. (NYSE:DHI), Lennar Corporation (NYSE:LEN) is one of the best performing Berkshire stocks this year.
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Disclosure: None. 11 Best Performing Warren Buffett Stocks in 2023 is originally published on Insider Monkey.
