Warren Buffett's Investment Strategy

By Matthew Frankel, CFP – Updated Sep 23, 2025 at 10:00 PM | Fact-checked by Frank Bass

Key Points

Buffett focuses on buying quality businesses at prices below their intrinsic value.
He advises against following market trends and emphasizes independent value assessment.
Long-term holding is crucial, aiming to keep stocks as long as they stay valuable.

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Warren Buffett smiling. — Image source: The Motley Fool.

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Intrinsic Value

The intrinsic value of a stock is its true value. It refers to what a stock (or any asset, for that matter) is actually worth -- even if some investors think it's worth a lot more or less than that am

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2. Focus on quality.

Warren Buffett doesn't invest in junk. Early in his career, he would often focus on businesses that were in decline but still had some value. But this changed decades ago.

You typically won't see Buffett buying struggling businesses, regardless of how cheap they become. One of the best Buffett quotes new investors can absorb is, "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

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NYSE: BRK.B

Berkshire Hathaway

Today's Change

(-0.14%) $-0.68

Current Price

$490.61

Key Data Points

Market Cap

$1060B

Day's Range

$488.29 - $492.75

52wk Range

$437.90 - $542.07

Volume

84K

Avg Vol

4.4M

Gross Margin

24.15%

Dividend Yield

N/A

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Apple (NASDAQ:AAPL)	$3.9 trillion	0.39%	Technology Hardware, Storage and Peripherals
American Express (NYSE:AXP)	$244.7 billion	0.89%	Consumer Finance
Coca-Cola (NYSE:KO)	$306.5 billion	2.83%	Beverages
Bank of America (NYSE:BAC)	$381.6 billion	2.06%	Banks
Chevron (NYSE:CVX)	$314.9 billion	4.40%	Oil, Gas and Consumable Fuels

Data as of Oct 22, 2025.

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NASDAQ: AAPL

Apple

Today's Change

(-2.04%) $-5.35

Current Price

$257.42

Key Data Points

Market Cap

$3900B

Day's Range

$255.43 - $262.85

52wk Range

$169.21 - $265.29

Volume

30M

Avg Vol

55M

Gross Margin

46.68%

Dividend Yield

0.00%

The tech giant's stock is the largest holding in the Berkshire Hathaway portfolio, even after being trimmed significantly in recent years. Berkshire owns 1.9% of Apple’s stock, which was worth more than $67 billion as of September 2025. Buffett loves Apple (AAPL -2.04%) not only for its "sticky" customers -- it's tough to imagine a company with a more loyal customer base -- but also for its pricing power and top-notch leadership.

2. American Express

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NYSE: AXP

American Express

Today's Change

(-1.01%) $-3.60

Current Price

$351.62

Key Data Points

Market Cap

$245B

Day's Range

$349.18 - $357.73

52wk Range

$220.43 - $357.73

Volume

1.8M

Avg Vol

2.6M

Gross Margin

61.04%

Dividend Yield

0.01%

One of Berkshire's largest investments by percentage of ownership is American Express (AXP -1.01%) stock; the company holds 21.8% of it, which is worth nearly $50 billion at the time of this writing. Buffett has held its stock for more than 30 years. He loves the company's valuable brand and its role as both a payment network and a lender in its transactions.

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3. Coca-Cola

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NYSE: KO

Coca-Cola

Today's Change

(-0.34%) $-0.24

Current Price

$70.98

Key Data Points

Market Cap

$307B

Day's Range

$70.51 - $71.61

52wk Range

$60.62 - $74.38

Volume

13M

Avg Vol

16M

Gross Margin

61.46%

Dividend Yield

0.03%

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NYSE: BAC

Bank of America

Today's Change

(-0.95%) $-0.49

Current Price

$51.03

Key Data Points

Market Cap

$382B

Day's Range

$50.44 - $51.58

52wk Range

$33.06 - $52.88

Volume

1.3M

Avg Vol

34M

Gross Margin

0.00%

Dividend Yield

0.02%

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NYSE: CVX

Chevron

Today's Change

(0.75%) $1.16

Current Price

$154.95

Key Data Points

Market Cap

$315B

Day's Range

$153.61 - $155.27

52wk Range

$132.04 - $168.96

Volume

159K

Avg Vol

8.1M

Gross Margin

13.57%

Dividend Yield

0.04%

The newest addition to the top five is Chevron (CVX +0.75%), in which Buffett aggressively invested during the 2022 bear market. The stake has been trimmed a bit, and Berkshire now owns 6% of the energy giant, a stake valued at about $19 billion in September 2025. Berkshire also owns several major energy subsidiaries, so this ties in well with Buffett's affinity for the sector.

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst and personal finance expert covering financial stocks, REITs, SPACs, and personal finance. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, The National Desk, and other TV networks and publications for his financial, stock market, and investing expertise.

TMFMattFrankel

@MattFrankelCFP

American Express is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Matt Frankel has positions in American Express, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Chevron. The Motley Fool has a disclosure policy.