If any investor has stood the test of time, it is Warren Buffett, and with good reason. For 60 years, the “Oracle of Omaha” had a rock-star-like presence in the investing world, and his annual Berkshire Hathaway Inc. (NYSE: BRK-B) shareholders meeting drew thousands of loyal investors. They were stunned at last year’s meeting when Buffett announced that he would step down as CEO of the investment giant at year’s end. While he remains board chair and vows to come to the office every day, he will also continue to have a voice in the day-to-day operations. His pre-announced successor and long-time lieutenant, Greg Abel, has assumed the CEO position and will likely direct or have a say in most, if not all, new investments, public or private.
Long-time investors and Buffett mavens know that his favorite holding for an S&P 500 stock is forever, so it’s not surprising to report that for all the success and stature Berkshire Hathaway has in the investment world, only three top companies make up almost 50% of the fund’s total holdings. While much more concentrated than most portfolio managers would ever consider, the strategy has worked for Berkshire Hathaway investors for years and will likely continue to do so. The question for investors is whether Abel will remain comfortable with the fund’s equity allocation to just three companies.
In addition, for years, Wall Street has urged Buffett to pay dividends to shareholders, as Berkshire Hathaway, according to recent reports, earns approximately $4.37 billion annually in dividend income from its stock portfolio. This income comes from the dividend-paying stocks that Buffett and his team have accumulated over the decades. Whether Abel will be able to persuade Buffett to change the dividend policy remains a wild card issue.
Berkshire Hathaway has a long history of beating the market. Over the past 20 years, it has delivered an average annual return of 12.1%, compared to the S&P 500’s 11.5%. It is essential to note that Berkshire Hathaway holds significant stakes in numerous well-known private companies, including Acme Brick, Benjamin Moore, Dairy Queen, Duracell, GEICO, and Lubrizol. Investors who still believe the path forward for Berkshire Hathaway will be optimistic should consider buying shares below $500, which is right in the middle of the 52-week trading range.
Here are the three companies that make up almost 50% of Berkshire Hathaway.
American Express
American Express Co. (NYSE: AXP) is an American bank holding company and multinational financial services corporation specializing in payment cards. This stock has performed strongly in 2025, offering a dividend yield of 0.86%. American Express is a globally integrated payments company that deals with card-issuing, merchant-acquiring, and card network businesses.
The financial giant posted strong third-quarter earnings per share of $4.14, exceeding analyst expectations of $3.99, representing a 19% year-over-year increase. Revenue grew 11% to $18.43 billion, surpassing the forecast of $18.05 billion. Net income increased 16%, to $2.9 billion, compared to last year.
The company offers products and services to customers worldwide, including consumers, small businesses, mid-sized companies, and large corporations.
Its segments include:
- U.S. Consumer Services, which offers travel and lifestyle services, as well as banking and non-card financing products.
- Commercial Services offers payment, expense management, banking, and non-card financing products.
- International Card Service provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business.
- Global Merchant and Network Services operates a payments network that processes and settles card transactions, acquires merchants, and provides multichannel marketing programs, capabilities, services, and data analytics.
Berkshire Hathaway owns 151,610,700 shares, 22% of American Express’s float and 17.9% of the portfolio.
Wells Fargo has an Overweight rating with a $425 target price.
Apple
Apple Inc. (NASDAQ: AAPL) designs, develops, and sells consumer electronics, computer software, and online services. It also offers a small dividend of 0.38%. It is almost hard to comprehend that the legacy technology giant, even after a recent sale of 20 million shares and a surge in sales over the past two years, still makes up a stunning 20.5% of the Berkshire Hathaway portfolio, which holds 1.6% of Apple’s stock.
The company offers:
- The iPhone, a line of smartphones
- Mac, a line of personal computers
- iPad, a line of multi-purpose tablets
- Wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod
Apple also offers AppleCare support and cloud services, and operates various platforms, including the App Store, which enables customers to discover and download applications and digital content, such as books, music, videos, games, and podcasts.
In addition, the company offers various services, such as:
- Apple Arcade, a game subscription service
- Apple Fitness+, a personalized fitness service
- Apple Music, which gives users a curated listening experience with on-demand radio stations
- Apple News+, a subscription news and magazine service
- Apple TV+, which offers exclusive original content
- Apple Card, a co-branded credit card
- Apple Pay, a cashless payment service
Citigroup has a Buy rating with a $330 target price.
Bank of America
While Buffett trimmed the position over the past two years, this quality financial giant remains an exceptional long-term holding with a solid 1.89% dividend yield. Bank of America Corp. (NYSE: BAC) is a bank holding company and financial holding company that reported impressive Q3 results. Earnings per share of $1.06 vs. $0.95, as revenue of $28.24 billion vs. $27.5 billion beat analysts’ estimates. Profit rose 23% from a year earlier to $8.5 billion, and revenue grew 11% year-over-year, with EPS jumping 31%. Berkshire Hathaway owns 568,070,012 shares, which is 10% of the portfolio and 7.8% of the float.
Its segments include:
- Consumer Banking, which offers a range of credit, banking, and investment products and services to consumers and small businesses.
- Global Wealth & Investment Management includes two businesses. Merrill Wealth Management offers tailored solutions to meet clients’ needs through a comprehensive suite of investment management, brokerage, banking, and retirement products. And Bank of America Private Bank provides comprehensive wealth management solutions.
- Global Banking offers a range of lending-related products and services. These include integrated working capital management and treasury solutions, as well as underwriting and advisory services.
- Global Markets offers sales and trading services, as well as research services, to institutional clients across fixed income, credit, currency, commodity, and equity markets.
Morgan Stanley has an Overweight rating and a $68 target price.
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