Warren Buffett, the legendary investor, has built a reputation as one of the most successful stock pickers of all time. His company, Berkshire Hathaway, owns a diverse portfolio of stocks valued at over $277 billion. Four of these stocks make up more than 57% of the total portfolio value.
Apple is the largest holding, with Berkshire’s stake valued at $59.5 billion. Buffett has praised Apple as Berkshire’s best business, thanks to its massive ecosystem of over 2.35 billion active devices worldwide. This provides a strong foundation for Apple’s subscription services and App Store fees.
American Express is another major holding, with Berkshire’s stake worth $43.1 billion. Buffett has held American Express since 1991, attracted by its focus on affluent customers and businesses. The company’s stability and profitability make it a long-term investment staple.
Bank of America is the third-largest holding, with Berkshire’s stake valued at $28.4 billion. Buffett decided to invest in the bank while soaking in a bathtub in 2011, striking a lucrative deal.
Buffett’s top investment holdings
Bank stocks like Bank of America provide broad exposure to the economy, dealing in areas such as commercial real estate, financial markets, and mortgages. Coca-Cola rounds out the top four, with Berkshire’s stake worth $28.2 billion. Buffett first purchased shares in 1988, drawn to the company’s stability and consistent dividend increases.
Coca-Cola has raised its dividend for 62 consecutive years, with Berkshire’s stake generating over $800 million in dividends annually. These four stocks exemplify Buffett’s investment philosophy of choosing strong companies with long-term growth potential. As he prepares to step down as CEO of Berkshire Hathaway at the end of 2025, these investments remain pillars of the company’s enduring success.
Buffett’s ability to identify businesses with clear competitive advantages that can be sustained for the long term has been a key factor in his success. He looks for companies with wide economic moats, meaning they have a significant and sustainable competitive advantage over their rivals. While Apple, American Express, and Coca-Cola are currently viewed as fairly valued or slightly overvalued by analysts, one Buffett stock appears undervalued at present: Occidental Petroleum (Oxy).
Berkshire owns more than 28% of Oxy’s outstanding shares, attracted by the company’s leadership in carbon capture initiatives and improving balance sheet. As Buffett transitions out of the CEO role, his investing principles continue to emphasize holding strong companies indefinitely. His confidence in their enduring competitive advantages and global importance has been a cornerstone of his success, and these four stocks are prime examples of that philosophy in action.
Image Credits: Photo by Nick Chong on Unsplash
