Samantha Sharf Forbes Staff
Born in 1930 Warren Buffett is easily one of the most famous members of the Senior generation alive today. But this group — born between 1928 and 1945 and sometimes called the Silent Generation or Traditionalists — is not as enamored with their generational-brethren’s stock as some younger folks.
To be sure, Seniors do own a healthy dose ofBerkshire Hathaway . The B shares of Buffett’s investment firm make up 1.1% of the average Senior portfolio but this does not elevate the stock to their top ten holdings, according to TD Ameritrade. Conversely, Berkshire falls comfortably into the youngest adult generations’ ten favorites. It ranks fourth with Millennials making up 1.7% of their portfolios and fourth with Gen Xers at 1.5%. The stock also accounts for 1.1% of the average Baby Boomer’s portfolio but for that generation — born between 1946 and 1964 — Berkshire ranks ninth.
Beyond Berkshire Seniors’ stock picks are unique in other ways. They are also the only group to not hold much Facebook. While the social media giant is in the top five for all other groups it is number 15 for seniors. Bank of America BAC +0.73% is a similar story: top five with Millennials, Gen Xers and Boomers but 14 with Seniors.
“While information technology is Seniors’ top held sector they are skewing a little bit lighter than the younger audience and that makes sense to me,” says Nicole Sherrod, managing director of TD Ameritrade’s trading group. “They have just had a little less exposure to technology.” Where seniors hold 19% tech stocks Millennials — the group of adults born after 1980 — holds 30%. Seniors’ health care holdings on the other hand skew slightly higher than other generations at 11% of the average portfolio. “It all goes back to invest in what you know.”
Replacing Berkshire, Facebook and Bank of America in Seniors’ portfolios areVerizon Communications VZ -0.16%, Pfizer PFE -0.2% and IBM IBM -0.31% which do not appear in any other group’s top ten.
Sherrod points out, “In the Boomer and Senior portfolio you’ll see a little bit more in the way of high yield and with the Millennials you’ll see a little more in the way of high beta.” In other words older generations are investing for income while younger generations are investing for growth. This may be one of the reasons AT&T is popular with these groups — the telco has a 5.4% dividend yield. This may also account for some of their relatively lower interest in Berkshire — Buffett doesn’t pay a regular dividend.
This post is part of a series on each generation’s favorite stocks right now. For other generations’ picks see –
“Johnson & Johnson And The 9 Other Stocks Baby Boomers Love Most”
“Johnson & Johnson And The 9 Other Stocks Baby Boomers Love Most”
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