53% of Warren Buffett's $259 Billion Stock Portfolio Is Invested in Just 3 Stocks
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Warren Buffett will ly go down as the greatest investor of all time. Unfortunately for the countless market watchers that have ed the Oracle of Omaha for decades, the 94...
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July 9, 2025
07:30 AM
The Motley Fool
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Warren Buffett will ly go down as the greatest investor of all time
Unfortunately for the countless market watchers that have ed the Oracle of Omaha for decades, the 94 year old is set to retire as the CEO of Berkshire Hathaway at the end of the year
He will remain chairman of the board of directors
Buffett has never been a big believer in portfolio diversification, calling it tection against ignorance
His strategy has certainly paid off
Between 1965 and 2024, Berkshire's stock generated compound annual gains of 19. 9%, compared to 10. 4% for the broader benchmark S&P 500 including dividends
Buffett and his team continue to deploy this strategy today
At the end of the first quarter of the year, over half of Berkshire's $259 billion equities portfolio was invested in just three stocks
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Apple: 26% of portfolio Buffett and Berkshire began buying the consumer giant Apple (AAPL 0. 54%) in 2016
Buffett reportedly first got interested in the stock after hearing how distraught one of his friends was after losing his iPhone
That made Buffett realize how strong the brand had become, something Buffett looks for in all of his major holdings
Berkshire eventually built its position in Apple to over 40% of the total portfolio
However, since the fourth quarter of 2023, Berkshire has sold some two-thirds of its position in Apple
Berkshire may have sold for several reasons including the iPhone losing market or the stock being overvalued, or Berkshire simply deciding to get more defensive -- the large conglomerate has piled into record levels of cash
Berkshire also seems to have timed its sales of Apple right because the stock is down 15% this year (as of July 3), largely due to tariffs
President Donald Trump's administration has levied high tariff rates in countries where Apple houses much of its duction, such as China and Vietnam
I wouldn't say that Apple concerns me too much because the company will always have one of the most desirable brands and some of the most desirable ducts in the world
However, I'm not particularly optimistic the company right now
For one, recent trade deals with China and Vietnam include much higher tariff rates than in the past
Analysts have also recently come out and said that the company's AI capabilities are not yet compelling enough to be a "game changer," particularly when it comes to the iPhone
Apple's current forward price-to-earnings ratio of 28. 7 is right around its five-year average, another reason the stock is not at the top of my list right now
It will be interesting to see if Berkshire continues to sell more of its Apple position this year
American Express: 16% Credit card powerhouse American Express (AXP 0. 21%) is one of the longest-owned stocks by Buffett and Berkshire, with the company purchasing the bulk of its position in 1991
In the past, Buffett has reportedly called the AmEx brand "special," and it's easy to see why
People not only buy AmEx cards because they are credit cards, but also because flashing the AmEx brand comes with a certain, whether it's being well off or trendy
Perhaps that's why AmEx's platinum card fetches close to a $700 annual subscription fee
AmEx also tends to attract higher-net-worth customers who are more resilient during economic downturns
This shows how AmEx's strong brand translates into a financial strength for the company
AmEx also has a very unique and attractive model
Not only does the company extend credit on its debit and credit cards, but AmEx runs a closed-loop payments system in which it facilitates most of the work required in completing card transactions, collecting significant fee income from facilitating these transactions
Strong payment networks can receive strong multiples from the market
Despite trading around all-time highs, AmEx's unique model and revenue diversification as well as looming deregulation in the banking sector (that should enable large banks to return more capital to holders) make the stock a buy
Coca-Cola: 11% Iconic beverage maker Coca-Cola (KO -1. 07%) is another stock that Buffett and Berkshire have owned for many years, since 1988
When Buffett and Berkshire buy stocks, they look for companies that will be strong enough to weather an entire economic and interest rate cycle
Coca-Cola is one of these companies
When Trump's tariff announcements crushed the market in April, Coca-Cola remained resilient and the stock has performed well this year, up over 15%
The company is guiding for 5% to 6% of organic growth this year and management also discussed how it has flexibility to offset some of the impact from aluminum tariffs by focusing on plastic packaging
Coca-Cola also regularly innovates in the beverage space
In addition to its iconic brands, the company now owns coffee and tea brands, juices, water, alcohol, and much more
The beverage king is also an excellent way for investors to generate passive income
Its dividend yield is close to 2. 90%, and the company has paid and raised its annual dividend for 63 straight years
Coca-Cola has returned over $93 billion in dividends to holders since 2010
Expected free cash flow of $9. 5 billion this year exceeds the jected nearly $8. 8 billion of estimated dividend payments
Coca-Cola will never be a fast-growing AI stock, but it's good to have some exposure to the consumer staples sector, which tends to outperform during economic downturns
Coca-Cola is definitely one of the higher-quality consumer staple stocks and when you factor in the dividend, it's an easy buy
American Express is an advertising partner of Motley Fool Money
Bram Berkowitz has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Apple and Berkshire Hathaway
The Motley Fool has a disclosure policy.
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