Hey this is tom, and this video is sponsored by nobody, since in this video we don't have any sponsors would ask you to click nothing, to smash nothing to buy nothing. The only thing i ask you is just to listen. So, a moment ago i was surfing the world wide web, as i was shocked to find out that cnbc put an article behind their payroll on the top four stocks that comprise 70 of warren buffett's berkshire hathaway portfolio, and i was like well, this shouldn't be behind The paywall, let me just make a free video to let everybody know what these four stocks are, and i'm actually going to do one better. What cnbc can't do is offer any sort of a real analysis.

I'm going to show you how these four stocks, including the recent portfolio, moves that warren's done, will show you what he's thinking about inflation and how he's prepping, because i think that's even more important than these four stocks. So let's get started, but you know, since we don't have any sponsors in this video, i have nothing to sell you. We can jump straight into the videos. Look like nothing doesn't match nothing, let's get started.

So these four stocks comprise about 70 of warren buffett's portfolio, which is definitely tells you a lot about what he thinks about diversification. Essentially, he treats talks like marriage. You know, if you find a good one, you marry it, you don't need 1500 different wives. I mean some sheiks in some.

Certain countries will disagree with him, but for the most part i get where he's coming from. Actually i vibe with it quite a lot, but here it is so basically, as you know, warren buffett loves companies that have good management good. Existing track record a strong brand i'll explain a second. Why, and he definitely is a guy who invests in businesses, not in stocks.

He doesn't look at share prices, short-term gains, the charts he invests in businesses and these principles actually made me a huge fan of him back in the day, and i still am, but before i tell you these four stocks, i want to explain something to you. Warren buffett did do almost 2700. Basically, since he started berkshire hathaway, which is definitely an outperformance over the s, p, 500, but over the last decade, he's been kind of flat. So we need to take this into consideration.

The other thing is the other cloud above his head. To put a little bit of this in perspective. Is that infamously there's a boomer going on that tim, coke from apple was actually gung-ho about buying tesla when elon was trying to sell and warren buffett was the guy who told him not to do it? Well, don't know if that's true or not, but i can tell you not even sure that tesla even hits where it hits today. If tim cook is basically in charge and it's under apple, who knows it might have died.

So no love loss, no spilled milk. Let's just get to it, so the first company is apple apple is currently at 130 billion, which is the biggest holding. He has this fund and i'll tell you in a second, why i absolutely love this investment and how it shows a lot about his basically approach to inflation, but i want to go through the list. First.

The second holding is bank of america, with about 45 billion 27 billion in american express and 21.6 billion in coca-cola. Now, there's one thing: in common with every single one of these companies: they all have a household brand and some of them actually have a cult following like an apple or even coke. People who drink coke are basically addicts. I mean i am one.

I know how it feels so very strong brands, very high loyalty and with the finance businesses boa and amex, very sticky, businesses both on the retail side and the commercial side, but hang on a second. This isn't the point of the video. This is just to stick. It to cnbc and give away for free the information they put behind the paywall, which i don't really like now.

What does it show you about inflation and how warren buffett thinks about inflation? Well, in case you didn't know, he already gave away his cards because the q3 financials of berkshire hathaway show that currently they're sitting on 150 billion in cash, which is about half of the entire value of this venture, is sitting in cash. Now anything that goes above that is usually used to buy back shares of the company, which basically means investing again double dipping into the same companies he's invested in. So why is he sitting on so much cash 150 billion as much as he ever said on? Well, there's only one reason really is because he's anticipating an inflationary crash interest rates go up. Companies go down many options on the ground.

I don't know if this was intentional or not, but there seems to be a rhyme hiding somewhere in there now. These companies is also holding actually prove some of the theories i spoke about earlier and, for example, we could take apple apple, can raise prices not lose pretty much demand almost none. They have almost no debt huge amounts of cash cash flow coming in every single quarter. With almost a consistent basis, so a lot of cash, a lot of cheap money.

Basically, they don't have to borrow money. They can increase prices, they don't need to increase capex by a lot because they're going through this metamorphosis going into services, which means much less capex expenditures, much better margins and they're going into healthcare into services all this good stuff. So they basically fit the profile of an inflationary stock quite perfectly, and you can do the same analysis for the other three and i'm sure you're gon na get the same result. If coke raises their prices by 50 cent or a dollar, will people stop drinking coke? Presumably, no i mean i wouldn't i think most people are the same and you can make a similar argument for the stickiness of the business of boa and amex on the commercial and the retail side as well.

But overall it seems that warren buffett is definitely gearing up towards inspiration. 50 of his money is sitting in the bank, which means he's willing to give up interest on 50 of his money just to put this money on the sideline waiting to pounce on the market. At a moment of weakness, because, as you know, warren buffett is the guy who coined the phrase. You know when everybody's greedy, i'm fearful my brother, is fearful, i'm greedy, that's why he bought bad of a bad of america, bad bank of america, for i think, like 5 billion.

This is now worth 27 billion or whatever it is. I mean the guy usually knows what he's doing on a macro economic level. But then again i told you last 10 years he's been kind of conor mcgregoring it for the last 10 years, but i think on this point, he's right because, as you know, i also think inflation is coming, but mainly this was just to stick it to cnbc. Here you go the four companies plus the bonus.

What warren buffett thinks about inflation, so you can pray better hope. This was helpful. A huge shout out to the channel members and the patrons you guys are the best community on youtube. If you want to join and support us, there's five bucks per month, the link is below feel free to join in community, but it's not mandatory, just keep watching the videos and enjoying them.

That's plenty enough for me see you tomorrow.