Welcome, aspiring investor! Ever wondered about the holdings of the legendary Warren Buffett, the "Oracle of Omaha"? It's a common curiosity, especially when it comes to a household name like Kroger. If you're looking for insights into how much Kroger stock Warren Buffett owns, you've come to the right place. We'll embark on a step-by-step journey to uncover this information and understand its significance.
Unveiling Warren Buffett's Stake in Kroger: A Step-by-Step Guide
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| How Much Kroger Stock Does Warren Buffett Own |
Step 1: Let's Start with the Obvious Question: Why Kroger?
Before we dive into the numbers, let's engage with a thought that probably crosses your mind: Why would Warren Buffett, known for his diverse portfolio of robust businesses, invest in a supermarket chain like Kroger? It's a fair question! Buffett and his Berkshire Hathaway team are renowned for their value investing philosophy, focusing on companies with strong fundamentals, durable competitive advantages (often called "moats"), and predictable earnings.
Kroger, as the largest non-discount supermarket chain in the United States, fits some of these criteria. It's a consumer staple business, meaning people will always need groceries, regardless of economic conditions. This provides a certain level of stability and predictability. Buffett initially invested in Kroger in late 2019, when the stock was arguably undervalued, demonstrating his keen eye for opportunities.
Step 2: Understanding How We Track Buffett's Holdings: The 13F Filing
So, how do we know what stocks Warren Buffett and Berkshire Hathaway own? It's not a secret handshake or a whisper network. The answer lies in a regulatory requirement called the 13F filing.
Sub-heading: What is a 13F Filing?
A 13F filing is a quarterly report submitted by institutional investment managers with at least $100 million in assets under management to the U.S. Securities and Exchange Commission (SEC). This filing discloses their equity holdings, providing transparency into their investment decisions. It's a goldmine for individual investors who want to track the moves of big players like Berkshire Hathaway.
Sub-heading: The Lag Factor
It's important to remember that 13F filings are historical snapshots. They are released 45 days after the end of each quarter. So, if we're looking at a filing from March 31, 2025, it means the information reflects their holdings as of that date, and it was likely released around mid-May 2025. This means there's always a slight delay in knowing their most current positions.
Step 3: Pinpointing the Numbers: How Much Kroger Stock Does Berkshire Hathaway Own?
Now for the main event! Based on the latest available 13F filings (as of March 31, 2025), Warren Buffett's Berkshire Hathaway owns a significant stake in Kroger.
Tip: Reread key phrases to strengthen memory.
Sub-heading: The Current Holding
As of March 31, 2025, Berkshire Hathaway holds 50 million shares of Kroger (KR) stock. This represents approximately 7.51% of the company's outstanding shares.
Sub-heading: The Value of the Stake
The value of this holding fluctuates with Kroger's stock price. As of recent reports, this stake was worth nearly $3.4 billion. It's important to note that this value can change daily based on market movements.
Sub-heading: Kroger's Position in Berkshire's Portfolio
While $3.4 billion is a substantial sum, it's worth noting that Kroger is not one of Berkshire Hathaway's top 10 holdings. It typically sits lower down on their list, representing around 1.2% to 1.3% of their total equity portfolio. This indicates that while it's a noteworthy investment, it's not a primary driver of Berkshire's overall performance compared to giants like Apple or American Express.
Step 4: A Look Back: Buffett's History with Kroger
Buffett's investment journey with Kroger didn't start with 50 million shares. He and his team have been strategically building and adjusting their position over time.
Sub-heading: Initial Investment
Berkshire Hathaway first initiated its position in Kroger during the fourth quarter of 2019, acquiring approximately 19 million shares.
Sub-heading: Adjustments Over Time
Since then, Berkshire has made various adjustments, including increasing its stake in Q1 and Q2 2021 and then trimming it somewhat in 2022. These adjustments are a normal part of active portfolio management, reflecting their ongoing assessment of the company and market conditions. Despite the minor trims, their significant holding remains.
Tip: Stop when confused — clarity comes with patience.
Step 5: Why Kroger Remains a "Buffett Stock"
Even with its smaller proportion in the overall portfolio, Kroger embodies several characteristics that align with Warren Buffett's investing principles:
Sub-heading: Stable Business Model
As a grocery retailer, Kroger provides essential goods, making it a relatively recession-resistant business. People need to eat regardless of the economic climate.
Sub-heading: Strong Brand and Market Position
Kroger has a vast network of stores under various banners, serving millions of customers daily. This strong market presence gives it a durable competitive advantage.
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Sub-heading: Dividend Payments
Kroger has a history of consistently paying and increasing its annual dividend, which aligns with Berkshire Hathaway's preference for companies that generate reliable passive income. Kroger has hiked its annual dividend payment for 17 consecutive years, providing Berkshire Hathaway with tens of millions in dividends annually.
Sub-heading: Value Proposition
When Buffett initially invested, Kroger's stock was trading at a low price-to-earnings ratio, suggesting it was undervalued compared to its potential. This "cheap" valuation, combined with its strong underlying business, made it an attractive candidate for a value investor like Buffett.
Step 6: The Long-Term View: What This Means for Investors
Buffett's ownership of Kroger stock sends a signal to the market. It suggests that, in Berkshire Hathaway's view, Kroger is a fundamentally sound company with long-term potential. However, it's crucial for individual investors to conduct their own due diligence.
QuickTip: Read again with fresh eyes.
Sub-heading: Not a "Buy" Recommendation
While tracking Buffett's moves can be insightful, it's never a direct recommendation to buy a stock. His investment objectives, time horizon, and risk tolerance are vastly different from those of most individual investors.
Sub-heading: Focus on Fundamentals
Instead of simply mirroring his portfolio, use his investments as a starting point for your own research. Understand the underlying business, its financial health, competitive landscape, and future prospects.
10 Related FAQ Questions: How To Edition
How to Find Warren Buffett's Latest Stock Holdings?
You can find Warren Buffett's latest stock holdings by checking Berkshire Hathaway's quarterly 13F filings with the SEC, typically available on the SEC's EDGAR database or financial news websites about 45 days after each quarter ends.
How to Interpret a 13F Filing?
To interpret a 13F filing, look for the "Holdings" section, which lists the company, ticker symbol, number of shares held, and the market value of each holding as of the filing date. Pay attention to new positions, increased/decreased stakes, and exited positions.
How to Understand Berkshire Hathaway's Investment Strategy?
Berkshire Hathaway's investment strategy, largely guided by Warren Buffett, focuses on value investing: buying shares of fundamentally strong businesses with durable competitive advantages ("moats") at attractive prices, with the intention of holding them for the long term.
QuickTip: Pause at lists — they often summarize.
How to Research Kroger's Financial Health?
You can research Kroger's financial health by reviewing its quarterly and annual reports (10-Q and 10-K filings) on the SEC website, checking financial statements (income statement, balance sheet, cash flow statement), and analyzing key financial ratios (P/E, debt-to-equity, profit margins).
How to Determine if a Stock is Undervalued?
To determine if a stock is undervalued, compare its current price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio to its historical averages and industry peers. Also, consider intrinsic valuation methods like discounted cash flow (DCF) analysis.
How to Invest in Stocks Like Warren Buffett?
To invest like Warren Buffett, focus on long-term investing, understand the businesses you invest in, seek out companies with strong competitive advantages, prioritize value over growth, and maintain a diversified (but not over-diversified) portfolio.
How to Access Historical Data on Warren Buffett's Portfolio?
Historical data on Warren Buffett's portfolio can be accessed through financial data providers, investment research platforms, and websites that specifically track institutional investor holdings, often compiling information from past 13F filings.
How to Analyze a Company's Dividend History?
To analyze a company's dividend history, look at its dividend per share over time, its dividend yield, and its dividend payout ratio. Consistent increases, especially over many years, can indicate financial stability and management's commitment to returning value to shareholders.
How to Identify a Company's Competitive Moat?
Identify a company's competitive moat by looking for factors like strong brand recognition, high switching costs for customers, network effects, economies of scale, and proprietary technology or patents that make it difficult for competitors to replicate its success.
How to Stay Updated on Warren Buffett's Investment Moves?
Stay updated on Warren Buffett's investment moves by regularly checking financial news outlets, subscribing to investment newsletters that cover Berkshire Hathaway, and reviewing the latest 13F filings shortly after they are released by the SEC.
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