Warren Buffett’s Berkshire Hathaway Portfolio: Key Holdings Revealed
Warren Buffett is a respected investor who shares insights on his strategies annually in his letter to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders and during meetings. He discusses mistakes and lessons learned over his 80 years in the market.
Berkshire Hathaway currently oversees a portfolio valued at $281 billion. Although Buffett has sold stocks recently, nearly half of this value is concentrated in three major companies.
1. Apple (22% of Portfolio)
Buffett began investing in Apple (NASDAQ: AAPL) in 2016 when it was undervalued. Recognizing the company’s strong consumer base linked to the iPhone, Berkshire invested heavily, making Apple a significant part of its portfolio. After recent sales, Apple now comprises 22% of the portfolio.
Apple’s iPhone sales exceeded $200 billion for the past three years and are expected to continue growing. The company’s services segment is thriving, boasting a $100 billion annual run rate, and offers higher profit margins than its devices.
Despite its strengths, Apple faces challenges from potential tariffs affecting its supply chain and competition in artificial intelligence. The stock is currently priced about 20% lower than its late-2024 peak, with a valuation of 28 times forward earnings. Its proven business model and opportunities in AI may offer future growth.
2. American Express (16% of Portfolio)
American Express (NYSE: AXP) has been a stable investment for Buffett since his original $1.3 billion purchase in the 1990s, now valued at nearly $45 billion. Amex operates as both card issuer and payment processor, allowing it to capture higher interchange fees.
The company reported an 18% increase in net card fees year-over-year. While Amex has shifted toward offering more credit products, its primary revenue source remains payment processing. This strategy has insulated it somewhat from economic downturns, appealing to affluent consumers.
3. Coca-Cola (10% of Portfolio)
Coca-Cola (NYSE: KO) has been in Buffett’s portfolio for over 30 years, with his initial $1.3 billion investment now worth about $29 billion. Coca-Cola pays significant dividends, expected to total approximately $816 million for Berkshire’s shareholders this year.
The strength of Coca-Cola’s global brand and diverse product offerings provides it with considerable pricing power. Its scale also enables cost-effective local supply chains, which has been beneficial amid rising production costs.
Coca-Cola Bounces Back with Strong Q1 Performance Amid Trade Pressures
Coca-Cola has managed to navigate global trade pressures better than its competitors, keeping costs lower. In its first-quarter earnings call, management noted the company faces challenges from trade dynamics but maintains a stronger position than many businesses.
This strategic advantage led Coca-Cola to report a revenue increase of 6% and a 1% rise in earnings per share for the first quarter. While these figures may seem modest, they contrast sharply with PepsiCo, which experienced declines in both metrics during the same period.
Coca-Cola’s performance has not gone unnoticed, with its stock price rising 15% year-to-date. Currently, shares trade at 24 times forward earnings. Though this is above its historical average, experts suggest the company’s strong economic positioning justifies the premium. Additionally, investors can benefit from a 2.8% dividend yield at the current price.
Considerations for Investing in Berkshire Hathaway
Before investing in Berkshire Hathaway, potential buyers should evaluate carefully:
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The views expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.
