Is Warren Buffett Invested in McDonald’s?
Written by
Choncé Maddox
Edited by
Zuri Anderson
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Warren Buffett is famously loyal to McDonald’s, at least when it comes to breakfast. But when it comes to investing, the billionaire behind Berkshire Hathaway hasn’t owned McDonald’s stock for decades.
Here’s what public filings, historical records and Buffett’s own comments reveal about whether he’s invested in McDonald’s today, and why he sold his stake.
Does Warren Buffett Currently Own McDonald’s stock?
No. As of the most recent Berkshire Hathaway filings and portfolio disclosures, Warren Buffett is not invested in McDonald’s, according to Motley Fool.
Berkshire Hathaway’s publicly traded holdings, which include major stakes in companies like Apple, American Express and Coca-Cola, do not list McDonald’s among them. Several portfolio analyses and SEC Form 13F summaries confirm Berkshire does not hold a material stake in McDonald’s today, per Bitget.
That might surprise some investors because the fast-food giant has many qualities Buffett typically likes, including strong brand recognition, consistent cash flow and global dominance.
But while he doesn’t own the stock now, he did invest in McDonald’s in the past.
When Buffett Owned McDonald’s Stock
Berkshire Hathaway first bought McDonald’s shares in the mid-1990s, according to Business Insider.
Public filings show Berkshire purchased millions of shares and eventually built a sizable position; at one point owning about a 4.3% stake in the company. By the late 1990s, Berkshire had accumulated tens of millions of shares worth hundreds of millions of dollars.
However, the investment didn’t last long by Buffett’s standards. Berkshire sold off the stake by 1998. That quick exit stands out because Buffett is known for holding strong companies for decades, not just a few years.
Why Warren Buffett Sold McDonald’s
While Buffett hasn’t publicly detailed his reasoning for selling McDonald’s, he has often emphasized the importance of reallocating capital to opportunities he believes offer stronger long-term value.
Here are some possible reasons why he might have sold the shares:
- Portfolio reallocation and valuation considerations: Berkshire Hathaway regularly adjusts its holdings based on valuation and opportunity, and selling McDonald’s may have been part of a broader effort to shift capital into investments Buffett believed offered stronger long-term value at the time.
- Opportunity cost and capital deployment: Buffett often emphasizes putting money where it can earn the highest long-term return, so exiting McDonald’s likely freed up capital for other investments or acquisitions Berkshire viewed as more compelling during that period.
- Lack of detailed public explanation: Berkshire has not re-entered a position in the company, suggesting the decision was likely tied to broader portfolio strategy rather than concerns about the brand itself.
While today, McDonald’s remains outside Berkshire’s portfolio, even though the company still fits many of Buffett’s classic investment criteria. For investors, the story serves as a reminder that even the most successful long-term investors don’t get every decision right, and sometimes selling too soon can be just as costly as buying too late.
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