Warren Buffett thinks big. You don't amass a net worth of well over $100 billion without doing so.
It's not surprising that he has led Berkshire Hathaway (BRK.A -1.43%) (BRK.B -1.50%) to put a lot of money into some of the biggest companies on the planet. Nearly 70% of Buffett's $326 billion Berkshire portfolio is invested in these nine megacap stocks.
1. Apple
Apple (AAPL 1.28%) ranks as Berkshire's biggest holding, by far, making up 47% of the conglomerate's total portfolio. It's also the biggest company in the world with a market cap of more than $2.6 trillion. Buffett loves the "stickiness" of the company's products, stating in a CNBC interview earlier this year that many customers wouldn't give up their iPhones forever even if offered $10,000.
2. Bank of America
Although Buffett isn't as big of a fan of bank stocks as he used to be, he still likes Bank of America (BAC -0.47%). BofA is his second-largest position, comprising roughly 8% of Berkshire's portfolio. Buffett bought even more shares of the big bank earlier this year. However, Bank of America is only a borderline megacap stock right now with its market cap hovering around the $200 billion threshold.
3. The Coca-Cola Company
Buffett has owned shares of The Coca-Cola Company (KO -0.20%) longer than any stock other than Berkshire itself. Coca-Cola still accounts for nearly 7% of Berkshire's portfolio. Its market cap of close to $240 billion is much larger than it was when Buffett first initiated a position in the stock way back in 1988.
4. Chevron
Buffett trimmed his stake in Chevron (CVX -0.18%) somewhat in the second quarter of 2023. However, the oil and gas giant still makes up 5.5% of Berkshire's portfolio. Chevron's market cap stands at $274 billion, its lowest level so far in 2023.
5. Visa
Economic moats rank among Buffett's favorite things to see in a stock. Visa's (V -1.15%) moat includes network effects (the more merchants and cardholders use its payment network, the more valuable it becomes). Berkshire owns nearly $2 billion worth of Visa stock, although that doesn't add up to even 1% of its overall portfolio. It's also only a fraction of a percentage of Visa's total market cap of more than $460 billion.
6. Mastercard
Take pretty much everything just said about Visa and apply it to Mastercard (MA -0.97%), too. The only differences are that Berkshire's stake in Mastercard is around $1.5 billion, and the payment processing company's market cap is around $340 billion.
7. Amazon
Buffett doesn't own a huge stake in Amazon (AMZN 1.30%) (only 0.4% of Berkshire's total portfolio), but the stock has been one of his biggest winners this year. The e-commerce and cloud services leader is also one of the biggest megacap stocks among his holdings with a market cap of more than $1.3 trillion.
8. Johnson & Johnson
Johnson & Johnson (JNJ -1.58%) used to be a much larger position for Berkshire. It's now one of the smallest holdings after Buffett exited much of his stake in the healthcare company several years ago. Still, Buffett hasn't completely thrown in the towel on J&J. Even after spinning off its consumer health unit, the company's market cap remains around $350 billion.
9. Procter & Gamble
Berkshire owns around $46 million worth of Procter & Gamble (PG -2.38%) shares, making it a tiny holding in the conglomerate's portfolio. However, P&G continues to be a monster in the consumer staples sector with a market cap of a little under $350 billion.
Buffett's best megacap stocks
What are Buffett's best megacap stocks? My answer varies based on your investing style.
For income investors, I'd go with Chevron. The energy company offers a dividend yield of nearly 4.2%. Chevron has also increased its dividend for 36 consecutive years.
Value investors' best pick of the group, in my view, is Bank of America. The big bank's shares trade at a forward earnings multiple of only 7.9. It also could appeal to income investors with a dividend yield of 3.8%.
I like Amazon for growth investors. Artificial intelligence (AI) should provide a massive tailwind for the company's AWS cloud services business. Amazon's profitability is also increasing nicely. This big stock could get much bigger over the next decade and beyond.