Many changes in the portfolio have been made by Warren Buffett hedge fund to dominate 2021 trends in the market. All the stakes of his firm were sold in Barrick Gold and Pfizer. 6 new positions such as Merck, AbbVie, and Bristol Myers Squibb have been recently added by the company. 3 pharma stocks were bought by the company in 2020 third quarter. The investments of Omaha and Oracle have been shifted to consumer staples, Information technology, and health care sectors. From 2019 to 2020 the weightage of investment in the health care sector has increased from 1.47% to 4.09%. 48% of the total portfolio has been held by the IT sector despite selling 6% stakes of Apple in the past quarter. The reputation of Warren Buffett remained constant but the hedge return could not be kept with the market index of an unhedged return due to which the reputation of the hedge fund industry has been disturbed in past few years. On the contrary, as identified by the insider Monkey’s study which shows that since March 2017 by more than 78% of S&P 500 ETFs have been outperformed by a select group of hedge fund holding. You can read about Top Stock Picks by Warren Buffett.
In 2020 Warren Buffet hedge funds positions underperformed in The Coca-Cola Company and in 2021 the trend of declining was extended. In the past 12 months, there is a 16% decline in the company shares because of pressure on earning and product sales. The company has continuously offered dividends to the investors despite the slow price performance of the stock. In the past 58 consistent years, KO is the king of dividends considering its increasing dividend history. 5.5% revenue of company declined in December quarter and 11% in one year. In 2020, a double-digit decline was seen in its operating income. But still, the company is confident regarding its prospects and business strategies. In 2021, outperforming the broader market index has been shared by Bank of America Corporation after one year of decline in shares. The portfolio of legendary investors holds it as the second-largest stock holding 11.35% of the total portfolio. Currently, 2% of dividend yield is offered by the bank. In the December quarter because of low-interest income, 10% of the revenue of Bank of America declined. However, in the fourth quarter, the bank managed to generate positive profit. Read more at Warren Buffett’s Top 10 Stock Picks.