Warren Buffett’s Berkshire Hathaway has nearly two-thirds of its $297 billion portfolio invested in just five stocks. Apple takes the top spot, accounting for 23% of
invested assets at $68.4 billion. The tech giant’s success comes from its popular iPhone and a shift toward subscription services under CEO Tim Cook.
American Express holds the second-largest position at 16.2% or $48 billion. As the third-largest payment processor in the U.S., AmEx benefits from its focus on high earners, helping it weather economic downturns better than many companies. Bank of America represents 11.9% of the portfolio at $35.4 billion.
Banks like BofA can grow their
loan portfolios over time and have benefited from recent interest rate hikes by the Federal Reserve.
Buffett’s concentrated investment strategy
The company’s capital-return program generates significant income for Berkshire.
Coca-Cola,
Buffett’s longest-held stock at 37 years, makes up 8.5% of invested assets at $25.3 billion. The beverage giant operates in nearly every country, providing consistent cash flow and growth potential. Its
marketing strategy engages consumers across age groups.
Chevron rounds out the top five at 6% or $17.7 billion. The energy company generates high margins from its upstream drilling segment while its other operations provide stable cash flow. Chevron has consistently increased production and offers a strong capital-return program.
These five
stocks showcase Buffett’s focused investment approach in top-notch companies, which continues to drive impressive returns for Berkshire Hathaway and its investors.
About The Author
Ashley Nielsen earned a B.S. degree in Business Administration Marketing at Point Loma Nazarene University. She is a freelance writer who loves to share knowledge about general business, marketing, lifestyle, wellness, and financial tips. During her free time, she enjoys being outside, staying active, reading a book, or diving deep into her favorite music.
