Key Points
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Berkshire Hathaway’s portfolio remains heavily concentrated in Apple, American Express, and Coca-Cola.
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All three are wonderful businesses that generate predictable cash flow.
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However, each brings something different to the table for Berkshire.
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Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) is now nearly four months into the Greg Abel era. It shouldn’t be surprising that it still feels quite similar to the Warren Buffett era — and not just because the legendary investor still comes into the office every day.
The philosophy that Buffett instilled for decades continues to guide Berkshire Hathaway under Abel’s leadership. That’s why more than 50% of the conglomerate’s portfolio remains invested in three “forever” stocks that Buffett loves: Apple (NASDAQ: AAPL), American Express (NYSE: AXP), and The Coca-Cola Company (NYSE: KO).
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Wonderful businesses
What are the common denominators shared by Apple, American Express, and Coca-Cola? They’re all what Buffett would call “wonderful businesses.” In his 2023 letter to Berkshire Hathaway shareholders, he used the phrase “wonderful businesses” in a discussion of Amex and Coca-Cola. Buffett has also called Apple “probably the best business I know in the world.”
But what makes these three companies so wonderful? Three qualities stand out, in my opinion.
Most importantly for Abel and Buffett, Apple, American Express, and Coca-Cola generate predictable cash flows. If I could point to a single reason why these three stocks make up over half of Berkshire’s portfolio, this would be it.
Second, these three companies boast dominant brands. Apple has ranked among the world’s most valuable brands for several years. Amex topped J.D. Power’s Small Business Credit Card Satisfaction Study for five consecutive years, a testament to its brand strength. Coca-Cola has consistently placed among the world’s most well-known and valuable brands.
Third, they all have strong pricing power stemming from their customer relationships. Apple has a phenomenally loyal customer base. American Express caters largely to affluent customers who can afford to pay higher prices. Coca-Cola’s beverages are woven into the lives of many consumers. Buffett famously said several years ago that he drank five cans of Coke each day. It’s not known if Abel is as much of a Coca-Cola connoisseur as the “Oracle of Omaha,” but many people across the world are.
These qualities are especially important when inflation is a concern and economic uncertainty prevails. That’s the environment in which Abel has received the baton from Buffett. He wants inflation-resilient investments in Berkshire’s portfolio. Apple, Amex, and Coca-Cola fit the bill.
Different angles with these forever stocks
While Apple, American Express, and Coca-Cola share some things in common, there are different angles with these forever stocks that likely appeal to both Abel and Buffett.
Apple remains Berkshire’s largest holding despite significant trimming over the last couple of years. Buffett acknowledged in an interview with CNBC’s Becky Quick in March 2026, “I sold it too soon.” He still believes that Apple is better than any of the businesses that Berkshire owns. However, Buffett added, “I was not happy to have it be as large as almost everything else combined.”
The key thing that Apple brings to the table is its remarkable ecosystem. Consumers love the company’s devices. Apple leverages this strength by offering services and ancillary products that further lock in customers.
American Express is Berkshire’s largest equity holding in the financial sector. In his 2023 shareholder letter, Buffett mentioned “the need for unquestioned financial trust” as one of the “timeless essentials of our world.”
Interestingly, he also described the consumption of Coca-Cola’s beverages as one of those timeless essentials. Coca-Cola is Berkshire’s longest-held position. It pays attractive dividends that continue to grow: Coca-Cola is a member of the Dividend Kings, an elite group of stocks that have increased their dividends for at least 50 consecutive years. Coke’s streak of dividend hikes is now 64 years in a row.
Some things don’t change
Although Buffett initiated the investments in Apple, American Express, and Coca-Cola, Abel seems just as committed to the three stocks. He wrote in his first letter to Berkshire Hathaway shareholders that they are “businesses we understand well, have a high regard for their leaders, and expect will compound over decades.”
Abel told shareholders to expect Berkshire’s concentrated positions to continue. He said that there will be “limited activity in these holdings, though we may significantly adjust a holding if we see fundamental changes in its long term economic prospects.”
Buffett’s investment approach remains front and center at Berkshire Hathaway, with Abel at the helm. This continuity, exemplified by the large holdings in Apple, American Express, and Coca-Cola, should reassure Berkshire’s shareholders.
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American Express is an advertising partner of Motley Fool Money. Keith Speights has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends American Express, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
