2 Buffett Stocks to Load Up On—And 1 to Ditch

Core Viewpoint - Warren Buffett has made significant changes to the Berkshire Hathaway portfolio, including a $4 billion sale of Apple Inc. shares to increase cash and Treasuries reserves [3]. Group 1: Portfolio Changes - Berkshire Hathaway sold approximately $4 billion in Apple Inc. shares to build a substantial cash and Treasuries reserve [3]. - Investors looking to replicate Buffett's trades through Berkshire's 13F filings should be aware that the information is limited and outdated [4]. Group 2: Investment Opportunities - Long-standing positions like The Coca-Cola Co. and Visa Inc. may be worth considering for investors as they approach the new year [4]. - Coca-Cola has a price-to-earnings (P/E) ratio of 23.8, which is at or below its levels from the past two years, despite some concerns about its valuation compared to alternatives [5]. - Coca-Cola's strong pricing power allows it to maintain cash flow during inflationary periods, and it reported a 4-cent earnings per share (EPS) beat in the last quarter [6]. - With 64 consecutive years of dividend increases and a yield of 2.89%, Coca-Cola remains a strong buy-and-hold candidate [7]. - Visa may have operational advantages over competitors due to potential credit card interest rate limits [7]. Group 3: Potential Risks - Bristol Myers Squibb has attractive qualities but faces near-term challenges from Medicaid changes and patent expirations [7].