How Buffett's Core Strategy Locks in 65% of Berkshire Hathaway's Portfolio

The Foundation: Why These 5 Stocks Matter

When Warren Buffett stepped down as CEO, the investing world questioned whether his fingerprints would still be visible on Berkshire Hathaway’s holdings. The answer is yes. As chairman and the conglomerate’s largest shareholder with 30.4% voting control, Buffett’s investment philosophy remains embedded in every position. And his influence is most apparent in five core stocks that now represent nearly two-thirds of the portfolio.

The new CEO, Greg Abel, has publicly stated he won’t dramatically reshape these positions. This stability speaks volumes about the conviction level behind these holdings. Let’s break down what Buffett built and why it endures.

Apple: The Ecosystem Player

Apple commands the most attention in Berkshire’s portfolio at 21.1% of total holdings, with 238 million shares on the books. Yes, Buffett trimmed significantly over the past couple of years, but the iPhone maker remains untouchable to him.

The reasoning is straightforward: Apple’s ecosystem lock-in is nearly unmatched. Once users commit to iPhones, they’re unlikely to switch. Beyond that, there’s the smart glasses opportunity. Buffett has always believed in companies that solve real problems for billions of people. If Apple succeeds in wearable AI interfaces, the upside could be substantial.

American Express: The “Forever Hold”

Buffett explicitly called American Express a stock Berkshire would own indefinitely. That label carries weight. The financial services company comprises 18.3% of the portfolio—the second-largest position.

What makes Amex different? It’s the high-quality customer base. Affluent cardholders have strong loyalty, predictable spending patterns, and lower default rates than mass-market credit card users. This translates to a moat that’s hard to replicate. Abel understands this and won’t tinker with it.

Bank of America: The Contrarian Bet

With over $31 billion worth of shares (10.2% of the portfolio), Bank of America represents Buffett’s continued faith in traditional banking. Though his enthusiasm for bank stocks cooled years ago, BAC’s valuation at a forward P/E of 12.7 keeps it attractive.

The dividend yield matters too. Berkshire isn’t just speculating on upside; it’s generating steady income. However, don’t expect Abel to aggressively add to this position either. It’s a “hold and collect dividends” stock rather than a growth opportunity.

Coca-Cola: The Timeless Classic

Coca-Cola is perhaps Buffett’s most personal holding. He’s owned it longer than any other major position and famously consumes the product daily. With 400 million shares, it’s the fourth-largest holding—and untouchable.

The business is simple: recurring consumer preference, pricing power, and global distribution. Buffett bought Coca-Cola decades ago and never looked back. Abel knows better than to mess with a legacy position that’s performed across countless market cycles.

Chevron: The Energy Anchor

Rounding out the top five is Chevron at 122 million shares, despite Buffett’s well-publicized praise for Occidental Petroleum. The oil and gas giant’s 4.5% dividend yield provides reliable income that Berkshire reinvests or deploys elsewhere.

Buffett has trimmed Chevron multiple times, signaling openness to reducing energy exposure. Still, expect Berkshire to maintain a significant stake. Energy stocks provide ballast in recession scenarios and fund Berkshire’s operations without forcing asset sales.

The Bigger Picture

These five positions aren’t random. They represent Buffett’s core thesis: own pieces of wonderful businesses at reasonable prices and hold them for decades. American Express and Coca-Cola could be held indefinitely. Apple, Bank of America, and Chevron provide additional diversification and income.

Greg Abel’s continuity with these holdings isn’t weakness—it’s affirmation. Some portfolios are so well-constructed that the best move is to stay the course. That’s Buffett’s lesson here, and his successor has taken it to heart.