Sixty Percent of Berkshire Hathaway’s $320 Billion Stock Portfolio Rests on Nine Companies

Sixty percent of Berkshire Hathaway’s $320 billion stock portfolio is now concentrated in just nine companies, a strategic shift under Greg Abel that signals a move toward durable, core positions over broad diversification. While Warren Buffett built the portfolio with deep conviction in select businesses, Abel’s first shareholder letter formalizes that focus—elevating nine holdings as the anchors of Berkshire’s equity strategy. Apple alone makes up 18.5% of the portfolio, a position Buffett began scaling back in 2023 but which Abel now appears ready to maintain or even expand. “I’m very happy to have it be our largest holding,” Buffett said in a recent interview, suggesting the selling phase may be over. At 31 times forward earnings, Apple trades near fair value, supported by strong iPhone sales in China and an upcoming AI-driven Siri upgrade expected to spur a major refresh cycle. American Express, at 15% of the portfolio, has evolved from a charge-card issuer into a growing lender, with net interest income accounting for a quarter of revenue and card fees rising 17% annually since 2019. Trading at 18 times earnings, it offers attractive valuation relative to its mid-teens EPS growth targets. Coca-Cola, a decades-long holding at 9.8% of the portfolio, leverages unmatched brand power to maintain margins while peers struggle, delivering 7% to 9% annual EPS growth at a forward P/E of 24. Moody’s, at 3.4%, benefits from a global duopoly in credit ratings and a fast-expanding analytics segment, though its 27 times earnings valuation reflects fair, not cheap, pricing. The final 13.4% is split across five Japanese trading houses—Mitsubishi, Mitsui, Itochu, Marubeni, and Sumitomo—each held at between 9.7% and 10.8%. These firms mirror Berkshire’s own structure, operating diverse businesses and reinvesting cash flows. Their shares have surged, with Marubeni up 173% over the past year, though valuations have diverged: Itochu and Sumitomo now trade at the lowest enterprise value-to-EBITDA multiples in the group, making them the most compelling entry points for new investors. Itochu’s focus on high-return capital investments, including full ownership of FamilyMart, sets it apart from peers more tied to volatile resource markets. Itochu and Sumitomo trade at lower enterprise value-to-EBITDA ratios than their peers, making them the two best options for investors interested in the Japanese trading houses.