Warren Buffett’s Investment Strategy: A Closer Look
When it comes to investing, diversification is often considered a key component. However, one of the world’s most successful investors, Warren Buffett, has a different approach. With Berkshire Hathaway’s impressive average annual return of 19.8% over nearly six decades, it’s clear that Buffett knows what he’s doing.
Buffett’s Top Holdings
As of 2025, nearly 66% of Buffett’s portfolio is invested in just five stocks. These companies have been carefully selected for their exceptional business models and long-term growth potential.
Apple: The Largest Holding
Apple (NASDAQ: AAPL) has been the largest holding in Buffett’s portfolio for several years, and it remains at the top in 2025. Berkshire owns 300 million shares of Apple, worth around $73.2 billion, representing 24.8% of its total holdings. Although Buffett has been reducing his stake in Apple, the company’s stock has continued to soar.
American Express: A Long-Term Favorite
American Express (NYSE: AXP) is Buffett’s second-largest holding, with Berkshire owning over 151.6 million shares worth roughly $45.2 billion. Buffett has listed American Express among his top picks in his annual letters to shareholders, citing its exceptional business model and long-term growth potential.
Bank of America: A Valuable Holding
Bank of America (NYSE: BAC) ranks as Berkshire’s third-largest position, with Buffett’s company owning around 766.3 million shares worth $33.9 billion. Although Buffett has been selling shares of Bank of America, the company remains a valuable holding in his portfolio.
Coca-Cola: A Timeless Favorite
The Coca-Cola Company (NYSE: KO) is Berkshire’s fourth-largest holding, with Buffett’s company owning 400 million shares worth around $24.7 billion. Coca-Cola has been one of Buffett’s longest-held positions, and he has praised its exceptional business model and long-term growth potential.
Chevron: A Strategic Investment
Chevron (NYSE: CVX) rounds out Buffett’s top five holdings, with Berkshire owning over 118.6 million shares worth around $17.4 billion. Buffett first initiated a position in Chevron in 2020 and has since flipped between selling and buying shares of the energy giant.
Which Stock Will Shine Brightest?
While all of these top Buffett stocks have the potential to deliver positive long-term returns, two stand out in particular. Bank of America’s attractive valuation and potential for deregulation make it an attractive pick, while Apple’s innovative products and services, including artificial intelligence and augmented reality, position it for long-term success.
Investing Like Buffett
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