Berkshire Hathaway, the multinational conglomerate helmed by Warren Buffett, is a legendary name in the world of investing. With a reputation for delivering long-term value and prioritizing solid fundamentals, Berkshire Hathaway’s portfolio is closely scrutinized by investors and financial analysts alike. The company’s holdings offer a revealing glimpse into Buffett’s time-tested investment philosophy and provide clues about both the market and the industries he deems promising.

For those eager to understand how Berkshire Hathaway positions itself in the market, this post breaks down some of its biggest holdings. Whether you’re an experienced investor or just starting to explore the market, examining Berkshire’s portfolio is as close as you’ll get to learning directly from one of the greatest investors of all time.

What Makes Berkshire Hathaway’s Portfolio Unique

Some portfolios chase the hot tech trend or the latest speculative opportunities. Not Berkshire Hathaway. Known for a “buy-and-hold” strategy, Warren Buffett focuses on companies with strong competitive advantages, excellent management, and consistent cash flow. While other investors are caught up in day-to-day trading, Berkshire’s approach revolves around long-term value generation.

Berkshire Hathaway’s holdings showcase diversification across key industries, from technology to financial services to consumer goods. Its massive cash reserves and major equity stakes in blue-chip companies ensure both stability and growth potential.

Now, let’s take a deep dive into the specific companies that make up the conglomerate’s largest investments.

The Biggest Berkshire Hathaway Holdings @SMARTVEST

Berkshire Portfolio

1. Apple Inc. (Ticker Symbol: AAPL)

Stake: ~ $177.6 billion (as of Q3, 2023)

Percentage of Portfolio: 47.5%

Apple isn’t just the biggest holding in Berkshire Hathaway’s portfolio—it’s almost reflective of today’s market as a whole. It’s remarkable considering Buffett’s historical aversion to tech stocks. Apple stands out, not only because of its impressive product line but also because of its ability to create loyal customers across the globe.

What makes Apple so attractive to Berkshire? Its strong brand equity, diversified revenue streams (e.g., iPhones, services, wearables), and impressive ability to generate free cash flow. Additionally, Apple’s shareholder-friendly practices, such as returning capital via dividends and buybacks, align with Buffett’s preference for enduring value creation.

2. American Express (Ticker Symbol: AXP)

Stake: ~ $26.5 billion (as of Q3, 2023)

Percentage of Portfolio: 7.1%

American Express has been a Buffett favorite since the 1960s. The company’s longstanding reputation as a premium credit card provider and its moat—evident through a strong brand and loyal customer network—make it a standout in financial services.

AmEx benefits from an affluent customer base, which is a segment less likely to default even when economic conditions are tough. The company’s ability to charge higher merchant fees than competitors further highlights its appeal.

Buffett praises American Express for its consistency and ability to adapt, particularly as the financial industry has evolved toward digital payments.

3. Coca-Cola (Ticker Symbol: KO)

Stake: ~ $23 billion (as of Q3, 2023)

Percentage of Portfolio: 6.1%

A hallmark of Buffett’s “forever stocks,” Coca-Cola holdings reflect everything Berkshire stands for—predictable earnings, a wide moat, and unparalleled global brand recognition. Since its acquisition in 1988, Coca-Cola has delivered consistent dividends, perfectly suiting Berkshire’s income-focused strategy.

This investment stands as proof of Buffett’s belief in investing in businesses you understand (not to mention his personal love for Coke). While beverage consumption trends have shifted over the years, Coca-Cola has successfully diversified its offerings, including bottled water, sports drinks, and even coffee.

4. Bank of America (Ticker Symbol: BAC)

Stake: ~ $33.4 billion (as of Q3, 2023)

Percentage of Portfolio: 8.9%

Bank of America is a prime example of Buffett seizing opportunities during crises. Berkshire Hathaway initially invested in Bank of America during the aftermath of the 2008 financial collapse, when many financial institutions were undervalued.

With its robust retail-banking segment and dominance in consumer and small-business lending, Bank of America is integral to the U.S. economy. It benefits from significant interest income due to its vast deposits, and like many Berkshire investments, it generates considerable dividend payouts.

5. Chevron Corporation (Ticker Symbol: CVX)

Stake: ~ $19.4 billion (as of Q3, 2023)

Percentage of Portfolio: 5.1%

Chevron represents Berkshire’s diversification into energy, a sector viewed as essential for global economic operation. Chevron is a standout in this space thanks to its responsible capital management and focus on shareholder returns via dividends and share buybacks.

Buffett values Chevron’s ability to thrive despite volatile oil prices. Its focus on profitability regardless of energy pricing cycles aligns with Berkshire’s long-term approach. Given the global push toward cleaner energy, Chevron’s investments in renewables could further strengthen its position in the years to come.

6. The Kraft Heinz Company (Ticker Symbol: KHC)

Stake: ~ $12.3 billion (as of Q3, 2023)

Percentage of Portfolio: 3.2%

Kraft Heinz reflects Berkshire’s historical fascination with consumer goods. While this holding has faced challenges, particularly with changing consumer preferences, Buffett’s investment underscores the value of established brands with high market penetration.

The company owns some of the world’s most recognizable food brands, from Heinz ketchup to Kraft mac & cheese, which serve as household staples for families. By focusing on operational efficiencies and adapting its portfolio to modern tastes (e.g., organic products), Kraft Heinz can still deliver shareholder returns over the long term.

Other Notable Holdings

While the above investments make headlines, Berkshire Hathaway’s portfolio spans an impressive range of industries. Some notable mentions include:

• Moody’s Corporation (MCO): Buffett often emphasizes the importance of ratings agencies in financial markets, and Moody’s consistent earnings bolster its appeal.
• Occidental Petroleum (OXY): Joining Chevron in representing the energy sector, Occidental Petroleum showcases Berkshire’s stake in energy diversification.

What Investors Can Learn from Berkshire Hathaway’s Strategy

1. Patience Pays Off: Most of Berkshire’s top holdings have been in the portfolio for decades, reiterating the value of long-term investment.
2. Focus on Moats: Companies with strong competitive advantages—like brand loyalty or low-cost operations—are a hallmark of Buffett’s investments.
3. Diversification Matters: From tech to energy, Berkshire demonstrates the importance of spreading risk across industries.
4. Value in Dividends: Berkshire gravitates towards solid dividend-paying companies, providing reliable income streams.

By mirroring some of these principles, modern investors can seek to build resilient portfolios capable of weathering market fluctuations.

Where Does Berkshire Go from Here?

Berkshire Hathaway remains a north star for investors who prize steady returns over hype and speculation. The portfolio not only highlights market trends but also reinforces timeless investing principles.

For those looking to do investment research and emulate Berkshire Hathaway (or just stay up to date with its moves), consider closely observing its annual reports and portfolio updates. While none of us have the resources of Warren Buffett, everyone can stand to learn from his disciplined approach and unwavering attention to long-term value.