In 1973, Berkshire Hathaway (BRK.A -0.34%) (BRK.B -0.44%) held its first annual shareholder meeting in the employee cafeteria of one of its subsidiaries. Nowadays, Warren Buffett’s company draws in the neighborhood of 40,000 investors to its annual shareholder meeting each year.
The reason investors flock to Omaha is for the chance to hear the aptly-dubbed “Oracle of Omaha” speak about the U.S. economy, the stock market, and his investment approach. More often than not, Buffett is an open book who willingly shares the traits he looks for in an investment. Most importantly, he’s led Berkshire Hathaway’s Class A shares (BRK.A) to a cumulative gain of better than 5,470,000% spanning roughly six decades as CEO.
Riding the Oracle of Omaha’s coattails has been a moneymaking strategy for a long time -- and it all starts with knowing what’s in Berkshire Hathaway’s 44-stock, $297 billion investment portfolio.
Warren Buffett is a big fan of portfolio concentration and placing large wagers on his best ideas. Kicking off 2025, roughly 80% ($238 billion) of the $297 billion portfolio Buffett is overseeing at Berkshire is invested in just nine unstoppable stocks.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
1. Apple: $73.5 billion (24.8% of invested assets)
Even though Buffett has overseen the sale of more than 615 million shares of Apple (AAPL 0.35%) between Oct. 1, 2023 and Sept. 30, 2024, the smartphone kingpin remains Berkshire Hathaway’s largest holding by a significant amount in the new year.
Berkshire’s chief indicated during his company’s annual shareholder meeting in May that this selling activity may have to do with historically low corporate income tax rates. Then again, the stock market is historically pricey and eight consecutive quarters of net selling by Buffett and his team suggest there’s little in the way of value to be found.
But one aspect of Apple that continues to impress is its market-leading share repurchase program. Over the last 11 fiscal years (Apple’s fiscal year ends in late September), Apple has repurchased more than $725 billion worth of its common stock, which has had an undeniably positive impact on the company’s earnings per share (EPS).
2. American Express: $45.8 billion (15.4% of invested assets)
Credit-services provider American Express (AXP -0.01%) is the second longest-tenured holding in Berkshire Hathaway’s portfolio (since 1991) and one of eight stocks Warren Buffett considers to be an “indefinite” holding, based on his most recent annual letter to shareholders.
What makes AmEx so special is its ability to double-dip. In addition to being the No. 3 provider of credit-card network purchasing volume in the U.S. and collecting fees from merchants for processing payments, it’s also a lender. This allows it to collect interest income and annual fees from cardholders and benefit from both sides of the transaction counter.
Furthermore, American Express has historically done a great job of attracting high earners. Well-to-do cardholders are less apt to change their spending habits during minor economic swoons, which should help the company bounce back from recessions faster than most lending institutions.
3. Bank of America: $34.8 billion (11.7% of invested assets)
The Oracle of Omaha has also been a big-time seller of Bank of America (BAC -0.11%) stock of late. Based on Form 4 filings with the Securities and Exchange Commission, Buffett has shed 26% of his company’s position in BofA since July 17. Nonetheless, it’s still Berkshire’s third-largest holding in 2025.
The reason Buffett loves bank stocks so much is because they’re able to take advantage of the nonlinear nature of the economic cycle. Even though recessions are normal and inevitable, they’re short-lived. In comparison, most periods of growth stick around for years. Banks are highly cyclical companies that tend to grow in lockstep with the U.S. economy.
What helps Bank of America stand out from the pack is its interest-rate sensitivity. Being the most interest-sensitive of America’s biggest banks by total assets helped to pump up its interest income when the Federal Reserve undertook its steepest rate-hiking cycle in four decades from March 2022 to July 2023.
4. Coca-Cola: $24.3 billion (8.2% of invested assets)
Consumer staples goliath Coca-Cola (KO 0.82%) is the stock Buffett’s company has held the longest (since 1988), and it’s also considered a forever holding by the Oracle of Omaha.
Coca-Cola’s top-notch geographic diversity is one reason it’s been such a steady investment for decades. With the exception of North Korea, Cuba, and Russia (the latter has to do with its invasion of Ukraine in 2022), Coke has operations in every country. This means it’s generating predictable cash flow in developed markets, and moving the sales needle in faster-growing emerging markets.
What’s more, Coca-Cola’s branding is on point. It’s been the most-chosen brand by consumers for 12 consecutive years, based on the annual “Brand Footprint” report by Kantar. This is a reflection of the company leaning into digital media channels to connect with younger audiences, as well as relying on its storied history and brand ambassadors to engage its more mature consumers.
Image source: Getty Images.
5. Chevron: $17.5 billion (5.9% of invested assets)
Though energy stocks didn’t play a key role in Berkshire’s portfolio during the first two decades of this century, this changed in a big way over the last four years. Integrated oil and gas giant Chevron (CVX 0.51%) currently accounts for almost 6% of the $297 billion investment portfolio Buffett oversees.
While Chevron generates its most meaningful cash flow from its upstream drilling operations, the “integrated” aspect of its business is what helps it flourish. Chevron oversees transmission pipelines, as well as downstream chemical plants and refineries, all of which can help hedge against potential downside in the spot price of crude oil and/or natural gas. Consistency of cash flow is what’s allowed Chevron to increase its dividend in each of the last 37 years.
Chevron’s capital-return program has undoubtedly also attracted the Oracle of Omaha. The company’s board approved a $75 billion share buyback program in 2023, which pairs nicely with its 4.4% dividend yield.
6. Occidental Petroleum: $13.4 billion (4.5% of invested assets)
Chevron isn’t the only energy stock that’s caught Buffett’s attention. Since the beginning of 2022, Buffett has overseen the purchase of more than 264.1 million shares of Occidental Petroleum (OXY -1.01%) common stock.
Though Occidental is also an integrated oil and gas company, it sports two notable differences from Chevron. For starters, its sales are heavily skewed toward its higher-margin drilling segment. If the spot price of crude oil is rising, Occidental’s cash flow disproportionately benefits, relative to its peers. Conversely, if the price for crude oil is falling, Occidental tends to be hit harder than other integrated oil and gas companies.
The other key difference between Occidental and Chevron is their balance sheets. While both have net-debt positions, Occidental finds itself in a larger hole, relative to its equity. This is to say that Occidental Petroleum needs the spot price of crude oil to remain elevated so it can improve its financial flexibility.
7. Moody’s: $11.7 billion (3.9% of invested assets)
Ratings agency Moody’s (MCO 0.56%) is the third longest-held stock in Berkshire’s $297 billion investment portfolio (since 2000), and is easily one of Buffett’s best investments of all-time. Not including dividends, Berkshire’s stake in Moody’s is up more than 4,600% from its reported cost basis.
For much of the last decade, Moody’s growth has been propelled by its Investors Services segment. This is the arm that provides credit ratings on debt securities for businesses and government entities. Historically low lending rates spurred the issuance of debt and kept Moody’s Investors Service quite busy.
But with the nation’s central bank undertaking its steepest rate-hiking cycle in four decades, the tide has shifted to Moody’s Analytics. This is the division that provides solutions to help businesses assess risk and stay compliant with corporate regulations.
8. Kraft Heinz: $9.8 billion (3.3% of invested assets)
Whereas Moody’s has been one of Warren Buffett’s greatest investments of all-time, packaged foods company Kraft Heinz (KHC -0.39%) might be one of the worst. In a CNBC interview in February 2019, Buffett admitted that his company overpaid for Kraft in the 2015 merger between Heinz and Kraft Foods.
If there’s a silver lining to Berkshire’s sizable stake in Kraft Heinz, it’s that the company is doling out a 5.2% yield and selling products that are, for the most part, consumer staples. Regardless of how well or poorly the U.S. economy is performing, people still need to eat. With more than 200 brands in its product portfolio, Kraft Heinz is capable of generating relatively predictable operating cash flow.
On the other hand, volume has been steadily declining for the company, with price increases somewhat offsetting this weakness. Additionally, Kraft Heinz is lugging around almost $29 billion in goodwill it may not be able to recoup, along with roughly $19.4 billion in long-term debt. It has limited financial flexibility to improve its situation.
9. Chubb: $7.2 billion (2.4% of invested assets)
Last but not least is property and casualty insurance company Chubb (CB -1.00%), which is the stock that was given “confidential treatment” to allow the Oracle of Omaha and his team to build up a position in it from July 2023 through March 2024.
Though the insurance business is boring, this lack of surprises is what makes it so valuable. When catastrophe events occur, Chubb has little issue passing along higher premiums to its customers. But even when claim payouts are low, Chubb is able to justify premium increases on the basis that loss events are inevitable. More often than not, the insurance industry is a moneymaker.
Chubb should also benefit nicely from the Fed’s historic rate-hiking cycle. Insurers typically invest their float -- the premium they collect that isn’t paid out in claims -- in ultra-safe, short-term Treasury bills. The Fed’s actions have notably increased short-term T-bill yields, and insurers are reaping the rewards.
