Three Berkshire Hathaway Picks to Consider Adding to Your Portfolio With $2,500

Warren Buffett’s Investment Philosophy Reflected in Holdings

The transition of Berkshire Hathaway leadership at year-end 2025 marked a generational shift in investing. Yet the principles that guided Warren Buffett for decades remain embedded in the company’s portfolio. For investors seeking to understand his approach, examining the three cornerstone holdings reveals a pattern: companies with durable competitive advantages, pricing power, and the ability to generate steady cash flows across economic cycles.

The Duopoly Advantage: Why Moody’s Deserves Attention

Moody’s(NYSE: MCO) operates in a space where barriers to entry are remarkably high. The company has established itself as an indispensable infrastructure player in global financial markets by providing credit assessments that shape borrowing decisions for governments and corporations alike.

What makes this position defensible? Moody’s and a handful of competitors control approximately 80% of the credit ratings market, creating structural advantages few businesses enjoy. This duopoly status means the company benefits from the growth of global debt issuance without facing significant competitive pressure on pricing.

Beyond credit ratings, Moody’s Analytics extends into data and subscription services for financial institutions, creating multiple revenue streams. As debt markets continue to expand worldwide, the company’s fee-based model remains insulated from commodity-like competition.

The Beverage Giant’s Resilience: Coca-Cola’s Asset-Light Edge

Coca-Cola(NYSE: KO) demonstrates why Warren Buffett has maintained a position in Berkshire Hathaway for multiple decades. At Q3, the conglomerate controlled 400 million shares, representing one of its top four positions.

The appeal lies in elegantly simple business architecture. While Coca-Cola owns the recipes and brands that command global recognition, it partners with bottlers to handle manufacturing and distribution capital requirements. This asset-light model means the company generates substantial profits without capital-intensive obligations.

The company’s beverage portfolio spans soft drinks, energy categories, juices, teas, and coffee, providing diversification across consumer preferences. More compelling for income-focused investors: the dividend yield sits at 3%, with 63 consecutive years of annual increases. This track record demonstrates both profitability and management confidence.

Pricing power—the ability to maintain margins despite cost pressures—flows from brand strength. Consumers choose Coca-Cola not because it’s cheap, but because they want it specifically.

Premium Positioning: American Express as a Brand Fortress

American Express(NYSE: AXP) sits as Berkshire Hathaway’s second-largest public holding with 151 million shares owned at Q3 close. The company’s positioning around luxury and exclusivity creates what investors call a brand moat.

Products like the Black Card—entry fee $10,000, annual dues $5,000—attract affluent cardholders less sensitive to economic downturns. This customer concentration actually reduces credit risk; high-net-worth individuals show greater payment discipline across market cycles.

Unlike Visa and Mastercard, which earn transaction fees while leaving debt servicing to banks, American Express retains and services its credit card debt. This approach generates dual revenue streams: transaction fees and lending income. The trade-off—credit exposure—is substantially mitigated by the customer demographic.

Why These Three Stocks Matter for Long-Term Builders

Each of these companies reflects core Warren Buffett stocks principles: dominant market positions, pricing flexibility, recurring revenue models, and management teams focused on long-term value creation rather than quarterly metrics. With $2,500 to deploy, adding exposure to these proven performers can provide a portfolio foundation grounded in proven business models rather than speculative narratives.