Buffett’s Berkshire Adds AAPL; Cuts Holdings in USB and TSM
Stock Analysis & Ideas

Buffett’s Berkshire Adds AAPL; Cuts Holdings in USB and TSM

Story Highlights

This article discusses stocks where Warren Buffett’s Berkshire invested money in Q4. Berkshire significantly lowered its stake in USB and TSM.

The latest 13F filing of Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) shows that the ace investor tightened the purse strings in Q4. However, he continued to show confidence in Apple (NASDAQ:AAPL) and added more shares. Meanwhile, Berkshire increased its holdings in Paramount Global (NASDAQ:PARA) and Louisiana-Pacific (NYSE:LPX). Conversely, the firm significantly reduced its stake in US Bancorp (NYSE:USB) and Taiwan Semiconductor (NYSE:TSM).

As Buffett reshuffled his portfolio, let’s check what’s on the horizon for these stocks using TipRanks’ database. 

Is AAPL Stock Expected to Go Up?

While the upside in AAPL stock doesn’t appeal much, Wall Street is bullish about its prospects. The 12-month analysts’ price target of $172.71 implies an upside potential of 12.73% from the current levels. 25 Among the 30 analysts, 25 have rated it a Buy. Meanwhile, five analysts have made Hold recommendations. Overall, AAPL stock has a Strong Buy consensus rating on TipRanks. 

While analysts are bullish, hedge funds and insiders sold AAPL stock last quarter. Our data shows that hedge funds sold 947.2M shares of AAPL. Meanwhile, insiders sold AAPL stock worth $3M. Nevertheless, AAPL stock carries an Outperform Smart Score of nine. 

What’s the Prediction for PARA and LPX?

Using TipRanks’ database, we found that PARA and LPX stocks fail to appeal at current levels. Our data shows that the analysts remain sidelined on PARA stock. Further, the average price target of $19 suggests a downside potential of 15.37%. In addition, Paramount Global stock has a Neutral Smart Score of seven

While analysts recommend a Hold on PARA, they are cautiously optimistic about LPX. Also, Louisiana-Pacific carries an Outperform Smart Score of nine. However, the upside in LPX stock is low. Analysts’ 12-month price target of $70 implies 5.03% upside potential. 

USB and TSM Stocks

Berkshire reduced its holdings in USB and TSM stocks by 91% and 86% in Q4. However, TipRanks’ data shows that analysts are cautiously optimistic about USB stock. It sports a Moderate Buy consensus rating, while analysts’ average price target of $55.34 implies 12.64% upside potential. However, with hedge funds selling a whopping 89.3M shares of USB last quarter, it carries a Neutral Smart Score of five.

As for the TSM stock, our data shows that it has a Strong Buy consensus rating based on five Buy recommendations. However, analysts’ average price target of $104.33 indicates a limited upside potential of 6.5%. Also, TSM stock carries a maximum Smart Score of “Perfect 10,” implying it is more likely to beat the broader market. Note that shares with a “Perfect 10” Smart Score have historically outperformed the S&P 500 Index (SPX) by a wide margin. 

Bottom Line 

Berkshire’s recent SEC filing shows that Apple, Bank of America (NYSE:BAC), and Chevron (NYSE:CVX) remain their top investments. While Buffett increased his holdings in AAPL stock, retail investors could either follow him or leverage TipRanks’ Experts Center tool to pick stocks more likely to beat the market.



Price Change
S&P 500
Dow Jones
Nasdaq 100

Popular Articles