Berkshire Hathaway's Portfolio Remains Stalwart Under New Leadership
The era of Greg Abel at Berkshire Hathaway has begun, but its investment portfolio looks surprisingly similar to Warren Buffett's. One significant change did occur during Buffett's tenure: the addition of Alphabet to the mix. Now, Alphabet represents 9.9% of the total portfolio, making it the third-largest holding after Apple and American Express.
The four stocks that make up 53.6% of Berkshire Hathaway's equity portfolio are Apple (20.2%), American Express (13.7%), Alphabet (9.9%), and Coca-Cola (9.8%).
Apple has been the largest holding for years, but its weight was reduced by selling off some shares at the end of 2023. This move may signal a reduction in concentration risk rather than a loss of faith in the stock.
The reasons for Buffett's fondness for Apple are well-documented: it has excellent management, a strong economic moat, and a dominant position in the global smartphone market. The iPhone continues to see incredible demand, with three models being the top-selling smartphones worldwide, according to Counterpoint Research.
Buffett also praises American Express for its unique business model, which sets it apart as an excellent financial company. It has a closed-loop credit card network and a standalone bank that allows it to carefully curate its customer base and rewards program.
Coca-Cola is the longest-held position in Berkshire Hathaway's portfolio, with Buffett affectionately referring to it as his favorite holding period - forever.