It doesn't take a Nostradamus to predict what Warren Buffett will have as his top position in Berkshire Hathaway's portfolio next year. I think it will almost certainly be cash, including cash equivalents and short-term investments in Treasury bills.
Berkshire's cash stockpile totaled nearly $277 billion at the end of the second quarter of 2024. Buffett would have a hard time spending enough of that money over the next 16 months for cash not to be Berkshire's top position at the end of next year.
However, forecasting Buffett's top stock holdings isn't quite as easy. I have my ideas, though. I predict these will be the top-five stocks in Berkshire's portfolio in 2025.
1. Apple
Apple (AAPL +3.26%) has reigned as Berkshire's biggest holding for years. It's still No. 1 despite Buffett selling roughly half of his company's stake in Apple in recent months. I expect the stock will remain at the top in 2025.
NASDAQ: AAPL
Key Data Points
Even though Buffett has sold a significant chunk of Berkshire's position in Apple, there's no reason to believe he doesn't still like the stock and the company. At Berkshire Hathaway's annual shareholder meeting in May, he praised Apple's business.
2. American Express
American Express (AXP 1.00%) currently ranks as Berkshire's third-largest holding. It makes up 11.8% of the conglomerate's portfolio. I don't expect Buffett to buy additional shares of Amex, but I do think it will move up one spot.
There are two reasons behind my prediction about American Express. One is that I believe the stock will perform well over the next year or so (assuming there isn't a recession). What's the other reason? I'll discuss it next.
3. Bank of America
Bank of America (BAC 0.34%) trails behind Apple as Buffett's second-biggest stock holding right now. But it isn't far ahead of American Express, with Berkshire's stake in BofA worth around $36 billion and its stake in Amex worth $35.4 billion.
NYSE: BAC
Key Data Points
I think American Express may outperform Bank of America over the near term. More importantly, though, Buffett sold over $3.8 billion of the stock in Q2. I won't be surprised if his selling isn't finished.
4. The Coca-Cola Company
The Coca-Cola Company (KO 0.18%) is Berkshire's fourth-largest stock holding now. I don't think that will change in 2025.
Coke's share price could appreciate over the next 16 months. However, I wouldn't count on it soaring enough to leap into third place. And while Buffett loves the company and its stock, he hasn't bought any additional shares of Coke in years and likely won't do so anytime soon.
5. Occidental Petroleum
Chevron is currently in the No. 5 spot in Berkshire's portfolio. But I expect another oil stock will replace it sometime next year: Occidental Petroleum (OXY 3.09%).
NYSE: OXY
Key Data Points
I'm not sure if Occidental will deliver greater gains than Chevron. The two stocks often move in tandem. However, I'd bet that Buffett adds to his position in Oxy. Berkshire owns 28.8% of Occidental now but secured regulatory approval to increase its stake to 50%.
Best picks from these predicted top-five stocks
I think all five stocks I predict will be in Buffett's top five in 2025 could be winners over the long term. However, two especially stand out to me.
To borrow a slogan from years ago, Coke is it -- for income investors, at least. Coca-Cola is a Dividend King with a forward-dividend yield topping 2.8%.
What's the best pick of the group for growth investors? I'd go with Apple. The company plans to soon launch its first generative AI functionality. Apple could enjoy a strong boost in sales if its new Apple Intelligence features entice consumers to upgrade their iPhones. My prediction is that they will.
