Few, if any, companies' investing moves command as much attention as Berkshire Hathaway (BRK.A +0.28%)(BRK.B +0.14%). The trillion-dollar conglomerate has become the source of investment inspiration, largely thanks to its sustained success over decades.
Although diversification is one of the pillars of investing, Berkshire Hathaway hasn't quite been the poster child for that approach. Its portfolio is routinely top-heavy, including now, with its top four holdings making up nearly 56% of its total stock portfolio.
| Company | Percentage of Berkshire Hathaway's Portfolio |
|---|---|
| Apple (AAPL 0.93%) | 19.7% |
| American Express (AXP +2.17%) | 17.3% |
| Bank of America (BAC +0.81%) | 9.5% |
| Coca-Cola (KO 0.06%) | 9.1% |
Data source: Berkshire Hathaway's 13F filing. Percentages as of Sept. 30, 2025.
Given how much of Berkshire Hathaway's portfolio is concentrated in these stocks, should investors take that as a sign of confidence and invest in these four companies to begin 2026? Let's have a look.
Image source: Getty Images.
1. Apple
Apple is the world's third-most valuable company and has been Berkshire Hathaway's largest holding for some years. One thing that's working in Apple's favor is the ecosystem it has managed to build.
Yes, the iPhone is Apple's bread and butter, but when you buy an iPhone or another one of Apple's hardware products, you're buying into the ecosystem. Between iCloud, Apple Music, the App Store, and other services, Apple makes it hard to leave its ecosystem once you're in it because of how seamless the integration is.
This customer retention and the growth of its service businesses (which have much higher margins than hardware sales) give Apple another viable income stream that makes it less reliant on the iPhone and adds to the billions it already makes in free cash flow.
NASDAQ: AAPL
Key Data Points
Investors have been wary of Apple seemingly lagging behind in the artificial intelligence (AI) arms race, but the company has always played it safe when introducing new technologies. I expect it to make its mark in the near future with the technology.
2. American Express
American Express has positioned itself as a luxury brand that has continuously attracted more affluent customers with large wallets. This has allowed the company to charge a hefty fee for many of its premium cards and maintain a steady stream of guaranteed income that's not reliant on interest charges.
Amex also differs from other credit card companies because it owns the payment network and issues its own cards. This allows it to make money from transactions, annual memberships, and interest on balances. Companies like Visa and Mastercard, on the other hand, make money primarily from transactions that occur on their networks.
NYSE: AXP
Key Data Points
With Amex doing a great job of attracting millennials and Gen Z customers, it has a pipeline that should keep the business running steadily for the foreseeable future.
3. Bank of America
Bank of America is the quintessential traditional bank. It has its hands in almost every facet of the banking world, from consumer banking to investment banking to wealth management to small business lending. Investing in Bank of America is banking (no pun intended) on the long-term growth and stability of the U.S. economy.
Although it shouldn't be the reason you invest in Bank of America, having the "too big to fail" label provides a natural safety net for the bank, both on a regulatory front and as regards consumer trust.
NYSE: BAC
Key Data Points
Bank of America's business is cyclical, flourishing when the economy is growing, and "struggling" when the economy is rough. Despite that, it still has a rock-solid balance sheet that helps it weather the storm, no matter the broader economic conditions. As of the end of 2025, it had over $285 billion in cash and cash equivalents and over $3.4 trillion in assets.
4. Coca-Cola
Coca-Cola is one of Berkshire Hathaway's oldest holdings. It may not have the high growth you see in some tech stocks, but its stability makes it one of the prototypical defensive stocks. When in doubt, you know its dividend is as stable as they come, having increased the annual payout for 63 consecutive years (making it a Dividend King).
Dividend aside, Coca-Cola's products sell regardless of economic conditions. Even when money is tight, people tend to buy their favorite Coca-Cola product, whether it's soda, water, coffee, tea, or juices. This has given Coca-Cola pricing power to help offset periods when its volume may drop a bit or become stagnant.
Are these stocks buys right now?
All four of these stocks are staples and can be productive pieces for long-term investors. Each is a leader in its respective industry and can be approached with a "set it and forget it" mindset. That isn't to say they won't hit any rough patches (all stocks do), but you can trust their long-term growth trajectory. I wouldn't hesitate to add any of them to my portfolio.
