Warren Buffett Is Wagering 72% of Berkshire Hathaway's $283 Billion of Invested Capital on These 7 Unstoppable Stocks

Globe and Mail

17 hours ago

There's probably not a money manager on Wall Street who garners as much attention as Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett. The appropriately named "Oracle of Omaha" has overseen a nearly 6,000,000% aggregate return in his company's Class A shares (BRK.A) through the closing bell on June 9. For the sake of comparison, the broad-based S&P 500 's total return, including dividends, is a shade over 40,000% over the same 60-year timeline.
Despite Buffett being 94 years old and planning to step down as CEO by the end of the year, investors still eagerly follow his investing activity. Riding Buffett's coattails and mirroring his trading activity has been a profitable venture for decades.
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But one of the most defining aspects of Warren Buffett's investment philosophy has been his penchant for portfolio concentration. Both Buffett and late right-hand man Charlie Munger believed in putting an outsized percentage of their company's invested assets to work in their best ideas.
With less than seven months to go before Buffett officially cedes his long-held executive role to Greg Abel, he's wagering 72% ($203.3 billion) of Berkshire Hathaway's $283 billion of invested assets on just seven unstoppable stocks.
1. Apple: $60.4 billion (21.4% of invested assets)
Despite Buffett paring down 67% of Berkshire's stake in Apple (NASDAQ: AAPL) since Sept. 30, 2023, it still represents the Oracle of Omaha's largest holding by a substantial amount.
While Apple's calling card has often been its innovation, as well as its ongoing transformation into a higher-margin subscription-driven operating model, Buffett's investment in Apple primarily revolves around his keen understanding of consumer behaviors. Apple has an exceptionally loyal customer base, and most importantly consumers trust the brand.
Additionally, Apple has the world's leading share-repurchase program. Since kicking off its buyback initiative in 2013, Apple has spent more than $750 billion to reduce its outstanding share count by 43.3%. Lowering its share count has undoubtedly had a positive impact on the company's earnings per share.
2. American Express: $45.7 billion (16.2% of invested assets)
Credit-services titan American Express (NYSE: AXP) is one of eight holdings Berkshire's chief has no intention of ever selling, based on his 2023 annual letter to shareholders. Shares of AmEx, as American Express is more-commonly known, have been held continuously by Berkshire Hathaway since 1991.
What's made AmEx so special is its ability to benefit from both sides of a transaction. In the U.S., it's the third-largest payment processor by credit card network purchase volume, which allows it to collect fees from merchants. However, it's also a lender, which means it's able to double dip by collecting fees and/or interest income from personal and corporate cardholders.
Furthermore, American Express has a knack for attracting high-earning clientele. High earners are less likely to alter their spending habits or fail to pay their bill during modest economic downturns. On paper, AmEx is well positioned to navigate short-lived recessions.
Coca-Cola has increased its base annual dividend for 63 consecutive years. KO Dividend data by YCharts. Above chart only goes back as far as 1990.
3. Coca-Cola: $28.7 billion (10.2% of invested assets)
Consumer staples giant Coca-Cola (NYSE: KO) is another of the "indefinite" holdings listed by Buffett in his 2023 annual letter to shareholders. It's also Berkshire Hathaway's longest-tenured holding (since 1988).
Coca-Cola's long-term outperformance is a reflection of its relatively unrivaled geographic diversity. It has operations in every country, save for North Korea, Cuba, and Russia, the latter of which stems from its 2022 invasion of Ukraine. Servicing almost the entire globe ensures predictable operating cash flow in developed countries, as well as moves the organic growth needle in faster-paced emerging markets.
Although Apple has the best capital-return program on the planet, it's Coca-Cola that's the dividend gem of Buffett's eye. Coca-Cola has raised its base annual dividend for 63 consecutive years and is currently paying $0.51/quarter, or $2.04 annually. With Berkshire's cost basis in Coca-Cola stock a microscopic $3.2475 per share, Buffett's company is more than doubling its initial investment from dividends alone every 21 months!
4. Bank of America: $28.3 billion (10% of invested assets)
Since July 17, 2024, Buffett has overseen the sale of more than 401 million shares of Bank of America (NYSE: BAC) stock. Yet even with this somewhat aggressive profit-taking that's reduced Berkshire's stake in BofA by 39%, it still accounts for 10% of invested assets.
The reason Berkshire's chief loves financials (and specifically bank stocks) so much is their cyclical ties to the U.S. economy. Rather than trying to time when inevitable recessions will occur, Buffett has packed his company's portfolio with businesses that can take advantage of the fact that economic expansions last considerably longer than recessions. Bank of America's ability to prudently expand its loan portfolio during long-winded expansions has made it a clear winner.
Bank of America is also the most interest-sensitive of America's money-center banks. When the nation's central bank was increasing interest rates at the fastest pace in four decades between March 2022 and July 2023, no large bank saw its interest income climb faster than BofA. Even though the Fed is now in a rate-easing cycle, it's slow-stepping its moves and allowing Bank of America to generate plenty of high-interest loans.
5. Chevron: $16.7 billion (5.9% of invested assets)
Energy stocks haven't played a big role in Berkshire Hathaway's investment portfolio in decades, until somewhat recently. Integrated oil and gas goliath Chevron (NYSE: CVX) is currently a top-five holding for the Oracle of Omaha.
Warren Buffett wouldn't have $16.7 billion invested in an energy company if he and his top advisors weren't optimistic about the future spot price of crude oil. A lack of capital investment by global energy majors for a three-year period during the COVID-19 pandemic, coupled with Russia's invasion of Ukraine, creates a situation where crude oil supply may remain constrained for years to come. A higher spot price for oil can supercharge Chevron's drilling segment, which generates its juiciest margins.
However, Chevron is one of the most ideally positioned of all integrated operators. It also oversees transmission pipelines, as well as chemical plants and refineries. If the spot price of crude oil declines, Chevron's cash flow from its midstream and downstream segments can pick up the slack.
6. Moody's: $12 billion (4.2% of invested assets)
The third longest-tenured stock in Berkshire Hathaway's $283 billion investment portfolio is credit-rating agency Moody's (NYSE: MCO), which has been a continuous holding since it was spun off from Dun & Bradstreet on Sept. 30, 2000. It's also a stock that Buffett's company has gained more than 4,760% on, relative to its cost basis.
What made Moody's such a phenomenal business for so long is its Investors Service segment, which encompasses credit ratings and risk analysis for public companies and governmental entities. More than a decade of historically low lending rates encouraged businesses and local, state, and federal governments to borrow, which in turn kept credit-rating agencies like Moody's busy.
With interest rates meaningfully climbing since 2022, Moody's Analytics has come into focus and picked up the slack. This is the division that provides intelligence and analytical tools to help businesses navigate changing regulatory environments and assess risk.
Occidental Petroleum is highly sensitive to changes in the spot price of crude oil. WTI Crude Oil Spot Price data by YCharts.
7. Occidental Petroleum: $11.5 billion (4.1% of invested assets)
The seventh and final stock that, along with Apple, AmEx, Coca-Cola, BofA, Chevron, and Moody's, collectively helps to account for 72% of Warren Buffett's investment wagers at Berkshire Hathaway is integrated oil and gas company Occidental Petroleum (NYSE: OXY). The Oracle of Omaha has purchased almost 265 million shares of Occidental common stock since the beginning of 2022, which is worth about $11.5 billion, as of the closing bell on June 9, 2025.
Though it's an integrated energy company like Chevron, Occidental Petroleum generates an outsized percentage of its net sales from its drilling operations. If the spot price of crude oil is rising, Occidental's operating cash flow will enjoy disproportional benefits, relative to other integrated operators. But the reciprocal is also true, with Occidental getting punished more than its peers if the price of oil declines.
Another factor that makes Occidental Petroleum somewhat of an odd pick for Warren Buffett is its relatively debt-heavy balance sheet. While it did manage to reduce its long-term debt since the height of the pandemic, Occidental has far less financial flexibility than energy majors like Chevron.
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Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Chevron, and Moody's. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.