Three of them have handily beaten the market this year.
What are Warren Buffett's favorite stocks? You could argue for several candidates. However, ultimately, the answer boils down to which stocks he is invested in most heavily.
On that score, no guesswork is required. Buffett's Berkshire Hathaway (BRK.A -1.83%) (BRK.B -1.77%) and its wholly owned subsidiary, New England Asset Management, reveal all of their holdings on a quarterly basis. And as 2022 winds down, just five stocks account for a little over 73% of the value in Buffett's portfolio.
Apple (AAPL -0.80%) ranks by far as the top Buffett stock. Berkshire Hathaway directly owns nearly 895 million shares of the consumer tech giant. New England Asset Management owns close to 20.5 million additional shares. Between these two positions, Apple makes up a whopping 39% of Berkshire Hathaway's total portfolio.
Buffett clearly remains a big fan of Apple. You could even make the case that he's betting more heavily on the company through Berkshire Hathaway's new stake in Taiwan Semiconductor, which is an enormously important chipmaker for Apple.
Like most other stocks, Apple hasn't had a great year in 2022. However, the company still has solid growth prospects over the long term. Don't expect it to relinquish the top spot among Buffett's holdings anytime soon.
2. Bank of America
Buffett isn't as enthusiastic about bank stocks as he used to be. However, he obviously still likes Bank of America (BAC -4.46%) quite a bit. The financial services company makes up 11.2% of Berkshire Hathaway's portfolio, including shares owned by New England Asset Management.
Although Bank of America's share price has tumbled this year, the stock could be almost a no-brainer pick to buy for 2023. Higher interest rates will boost the financial giant's net interest income. Meanwhile, its loan volume continues to grow.
Chevron (CVX -2.50%) surged into the No. 3 spot among Buffett stocks this year. It now makes up 9% of Berkshire Hathaway's portfolio, including the more than 4.4 million shares owned by New England Asset Management.
The oil giant stands out as one of Buffett's biggest winners this year. Chevron could be able to keep this momentum going into 2023 if oil prices remain high. However, even if crude oil prices drop significantly, management expects to continue buying back shares and paying an attractive dividend.
Buffett loves Coca-Cola's (KO -1.37%) soft drinks -- in 2016, he stated that he drinks at least five Diet Cokes or Cherry Cokes every day. He also loves Coca-Cola stock. It makes up 7.3% of Berkshire Hathaway's equity portfolio.
The beverage company's stock has handily beaten the S&P 500 this year, but management hinted during the Q3 conference call that inflation could present more problems for it in 2023 than it has thus far. Even so, look for Coca-Cola to remain a Buffett favorite for years to come.
5. American Express
American Express (AXP -0.43%) ranks as Berkshire Hathaway's fifth-largest holding, representing 6.9% of the conglomerate's total portfolio. It has owned a significant position in AmEx since 1993, making it Berkshire Hathaway's second longest-held stock. American Express is also one of only five public companies in which Berkshire Hathaway owns a stake of 20% or more.
Macroeconomic worries have weighed on AmEx's stock price this year, but it's nonetheless beating the market. And with the shares trading now at less than 14 times expected earnings, American Express could be a top value stock to buy for 2023.
Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.