Berkshire Hathaway's massive stock portfolio, valued at approximately $351 billion, includes a diverse range of sectors. The portfolio is managed by CEO Greg Abel, who will soon mark his one-year anniversary in the role. Abel oversees the conglomerate's various businesses and its substantial stock investments.
The portfolio holds three consumer stocks that collectively make up 12.5% of its total value. The largest of these is Coca-Cola (NYSE: KO), which accounts for 9.8% of the portfolio. Coca-Cola has been a long-term holding for Berkshire, dating back to the 1980s, and is considered a 'core' holding by Abel. The company is known for its strong brand, consistent capital returns, and a robust dividend history, having increased its annual dividend for 64 consecutive years.
Another significant holding is Kraft Heinz (NYSE: KHC), which represents 2% of the portfolio. Berkshire's investment in Kraft Heinz has been challenging, with the stock underperforming since the merger of Heinz and Kraft in 2015. The company announced plans to split into two entities in 2025 but later paused the split. Kraft Heinz currently offers a high dividend yield of nearly 7.3%. The smallest holding among the three is Kroger (NYSE: KR), initiated by Berkshire in 2019, which accounts for 0.7% of the portfolio. Kroger has seen modest growth and faces stiff competition from other grocery retailers.
The article highlights Coca-Cola as the top pick among these three stocks due to its strong business performance, proven dividend, and resilience during market downturns. While Kraft Heinz presents a potential turnaround opportunity, it remains a risky investment. Kroger, though a defensive play, lacks the growth potential of Coca-Cola.