Seriously? Is Half of Warren Buffett’s Berkshire Hathaway Really in Just 3 Dividend Stocks?

If any investor has stood the test of time, it is Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock-star-like presence in the investing world. His annual Berkshire Hathaway shareholders meeting draws thousands of loyal fans who are investors. Buffett remains one of the world’s most prominent investors, known for his long buy-and-hold strategies and massive portfolio of public and private holdings.

Long-time investors and Buffett mavens are familiar with this quote, “His favorite holding for an S&P 500 stock is forever.” So it’s not surprising to report that, for all of the success and stature Berkshire Hathaway has in the investment world, three top companies make up over 50% of the fund’s total holdings. While much more concentrated than most portfolio managers would ever consider, the strategy has worked for Berkshire Hathaway investors for years and likely will in the future.

Here are the three companies that are over 50% of Berkshire Hathaway.

Why do we cover Warren Buffett stocks?

There are few investors with the results and the reputation Buffett has garnered over the last 50 years, and while investing has changed over the previous half-century, buying good companies with products and services that are known worldwide while paying dividends will always stay in style. 

American Express

This stock has been strong and pays a 0.95% dividend. American Express Co. (NYSE: AXP) is a globally integrated payments company that deals with card-issuing, merchant-acquiring, and card network businesses.

It offers products and services to customers worldwide, including consumers, small businesses, mid-sized companies, and large corporations.

Its segments include:

• U.S. Consumer Services (USCS)
• Commercial Services (CS)
• International Card Services (ICS)
• Global Merchant and Network Services (GMNS)

USCS offers travel and lifestyle services and banking and non-card financing products.

CS offers payment, expense management, banking, and non-card financing products.

ICS provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business.

GMNS operates a payments network that processes and settles card transactions, acquires merchants, and provides multichannel marketing programs, capabilities, services, and data analytics.

Berkshire Hathaway owns 151,610,700 shares, 21.6 % of American Express’s float, and 15.5% of the portfolio.

Apple

It’s almost hard to comprehend that the legacy technology giant, with 300 million shares, still makes up a stunning 24.3% of the Berkshire Hathaway portfolio, which holds 2% of Apple’s stock even after selling tens of millions of shares over the last year. Apple Inc. (NASDAQ: AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide.

The company offers:

• The iPhone, a line of smartphones
• Mac, a line of personal computers
• iPad, a line of multi-purpose tablets
• Wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod

Apple also provides AppleCare support and cloud services and operates various platforms, including the App Store, which allows customers to discover and download applications and digital content such as books, music, videos, games, and podcasts.

In addition, the company offers various services, such as:

• Apple Arcade, a game subscription service
• Apple Fitness+, a personalized fitness service
• Apple Music, which gives users a curated listening experience with on-demand radio stations
• Apple News+, a subscription news and magazine service
• Apple TV+, which offers exclusive original content
• Apple Card, a co-branded credit card
• Apple Pay, a cashless payment service

Apple investors are paid a modest 0.42% dividend

Bank of America

The company posted outstanding fourth-quarter results, pays a solid 2.36% dividend, and wants to increase its share repurchasing. Bank of America Corp. (NYSE: BAC) is a ubiquitous bank and financial holding company in the United States.

Its segments include:

• Consumer Banking
• Global Wealth & Investment Management (GWIM)
• Global Banking
• Global Markets

The Consumer Banking segment offers a range of credit, banking, and investment products and services to consumers and small businesses.

The GWIM includes two businesses:

• Merrill Wealth Management, which provides tailored solutions to meet clients’ needs through a complete set of investment management, brokerage, banking, and retirement products
• Bank of America Private Bank, which provides comprehensive wealth management solutions

The Global Banking segment provides various lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services.

Global Markets segment offers sales, trading, and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.

Despite selling a stunning 326 million shares in 2024, Berkshire Hathaway still owns 680,233,587 shares, 8.9% of the float and 10.3% of the portfolio.

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