Berkshire Hathaway's extensive stock portfolio, valued at approximately $351 billion, includes a diverse range of sectors. Among these holdings, three consumer stocks collectively make up 12.5% of the portfolio. Greg Abel, who will soon mark his one-year anniversary as CEO of Berkshire Hathaway, is responsible for managing this substantial portfolio.
The largest of these consumer stocks is Coca-Cola, which accounts for 9.8% of the portfolio. Coca-Cola has been a core holding since the 1980s and is expected to remain a long-term investment. The company's strong brand, capital return policies, and consistent dividend growth, having increased its dividend for 64 consecutive years, make it a standout in Berkshire's portfolio.
Kraft Heinz, another notable holding, represents 2% of the portfolio. The company has faced significant challenges, including shifting consumer preferences and high debt levels. Initially, Berkshire planned to divest its stake after Kraft Heinz announced a split into two companies. However, the new CEO, Steve Cahillane, paused the split, indicating a potential turnaround. Berkshire still holds a significant stake, and Kraft Heinz offers a high dividend yield of nearly 7.3%.
The smallest holding among the three is Kroger, with 0.7% of the portfolio. Despite its defensive qualities as a consumer staple, Kroger has underperformed the broader market. The company reported modest sales and earnings growth in the second quarter, with a trailing dividend yield of 2.6%.