Warren Buffett’s best-performing stock over the past 3 months isn’t Apple or Amazon. It’s a luxury furniture company.
Paul Morigi / Stringer / Getty Images
- Warren Buffett’s best-performing stock over the past three months is neither Apple nor Amazon.
- The biggest win for the billionaire and CEO of Berkshire Hathaway is Restoration Hardware, a luxury furniture seller whose shares have more than doubled since early May.
- Buffett’s second best performer over the period is StoneCo, which is up more than 80%.
- You can find more stories on the Business Insider homepage.
Warren Buffett’s best-performing stock over the past three months is neither Apple nor Amazon, although stocks of both tech titans rose to all-time highs this week.
Instead, Restoration Hardware, a high-end furniture retailer, has been the star holding of the famous investor and CEO of Berkshire Hathaway since early May. Buffett’s second best performer is StoneCo, a Brazilian digital payments company.
Apple stock is up 52% over the past three months, while Amazon is up 37%.
Meanwhile, Restoration Hardware’s shares are up 106% and StoneCo is up 81%. Another highlight in Buffett’s portfolio is the parcel shipping company United Parcel Service, which according to Gurufocus rose by around 58% in the reporting period.
Continue reading: JPMorgan says buy these 19 ‘diamond in the rough’ stocks that have fallen from annual highs but are feathered in front of us for huge gains
True, the size of Apple and Amazon means that the rally in their stocks over the past three months has increased their combined market cap by more than $ 1 trillion.
Meanwhile, Restoration Hardware and StoneCo have added less than $ 10 billion in total.
Additionally, at the last count, Buffett owned roughly 245 million Apple shares. Those are now worth nearly $ 112 billion, making the iPhone maker by far the most valuable stake in its stock portfolio.
As a result, any move in Apple stock is far more important to the overall value of Berkshire than a change in the price of its Restoration Hardware or StoneCo stock. Same goes for Amazon, assuming Berkshire still holds a $ 1.7 billion stake in the e-commerce giant.
Continue reading: A Wall Street investment chief warns that new stock market highs could represent a “historic trap” for investors – one that occurred shortly before the dot-com crash
Still, it’s surprising that, despite the hype surrounding Apple and Amazon, they are far from Buffett’s best-performing holdings in percentage terms in recent months.
Berkshire first invested in Restoration Hardware in the third quarter of 2019, buying around 1.1 million shares. That stake was increased to more than 1.7 million shares, or nearly 9% of total shares outstanding, in the following quarter.
With the coronavirus pandemic that confined millions of Americans to their homes earlier this year, so-called stay-at-home stocks, such as furniture retailers and hardware store chains, have seen their shares surge.
Buffett’s company held a position in StoneCo in the fourth quarter of 2018. It bought around 14.2 million shares that it hasn’t touched since, making it around 5% stake.
Assuming Buffett didn’t adjust these stocks, they’re worth about $ 695 million and $ 516 million, respectively.
Continue reading: 100 deals and a profit of $ 1 million a year: Mike Simmons made a simple change in his real estate investment strategy that turned him from a small house pinball into a full-fledged mogul
Here is a chart showing the recent performance of the four stocks and indexed through May 1st:
WATCH NOW: Why YETI Coolers Are So Expensive