Warren Buffett, the legendary investor and chief executive officer of Berkshire Hathaway from 1965 to 2025, famously stated that his favorite holding period was “forever.” This perspective reflects his long-term investment philosophy but does not imply an unwavering commitment to every stock he has acquired. Instead, Buffett has strategically sold off investments when they became overvalued or when the underlying business shifted unfavorably.
Among the core investments in Berkshire Hathaway’s portfolio, three stocks stand out as enduring holdings, representing the company’s largest positions. These investments are characterized by strong balance sheets, substantial economic moats, and consistent earnings or dividend growth, aligning seamlessly with Buffett’s investment principles. The three major companies that have benefitted from Buffett’s long-term strategy are Apple, American Express, and Coca-Cola.
Apple, the tech giant, was first added to Berkshire Hathaway’s portfolio in 2016, marking a notable shift as Buffett had previously avoided technology stocks. Despite occasional reductions in their position, the stake in Apple has largely been retained, making it the largest single holding in Berkshire’s portfolio. Currently, this 1.6% stake accounts for nearly 21% of the overall investment portfolio, valued at approximately $67.9 billion. Apple boasts an impressive economic moat, a devoted customer base, and a proactive approach to stock buybacks—characteristics that resonate with Buffett’s preference over traditional dividends.
American Express, another cornerstone of Buffett’s strategy, has remained in the portfolio for decades, distinguishing itself from competitors such as Visa and Mastercard. While these companies also operate within the payment processing sector, American Express’s distinct advantages include a more favorable valuation and the willingness of merchants to bear higher fees for access to its affluent customer base. The current valuation places American Express shares at a reasonable multiple compared to the higher premiums commanded by competitors, while analysts remain optimistic about its sustained earnings growth.
Coca-Cola, one of the longest-held investments in Berkshire Hathaway’s history, was gradually accumulated by Buffett between 1988 and 1994, resulting in a significant position that has never been sold. This 9.3% stake is now worth about $32.8 billion and has generated substantial dividend income, amounting to approximately $816 million annually. Coca-Cola’s impressive track record of increasing dividends makes it a quintessential “Dividend King,” reflecting 50 consecutive years of increases. The compound growth of dividends has turned Berkshire’s original $1.3 billion investment into a substantial income generator, illustrating the benefits of maintaining a long-term investment strategy.
In summary, Buffett’s enduring investments in Apple, American Express, and Coca-Cola not only highlight his commitment to businesses with robust financial health and growth potential but also embody his overarching investment philosophy that favors lasting value over temporary gains. Each of these holdings continues to exhibit strong fundamentals, ensuring their place in Berkshire Hathaway’s portfolio for years to come.
