The Motley Foolยท2025-05-21 07:06Core Insights - Warren Buffett's investment strategy emphasizes portfolio concentration, which has significantly contributed to Berkshire Hathaway's long-term success [1][6] - Berkshire Hathaway has achieved an aggregate return of over 6,230,000% since Buffett became CEO, vastly outperforming the S&P 500's return of approximately 39,700% during the same period [2] Group 1: Recent Developments - Berkshire Hathaway's annual shareholder meeting on May 3 revealed first-quarter operating results and announced Buffett's plan to step down as CEO by the end of the year, with Greg Abel as his successor [4] - On May 15, Berkshire filed its Form 13F with the SEC, detailing stock purchases and sales made by Buffett and his advisors in the recent quarter [5] Group 2: Key Holdings - Approximately 58% of Berkshire's $287 billion portfolio is concentrated in four major stocks [6] - Apple: Represents $63.4 billion (22.1% of invested assets). Despite a reduction in shares from 915 million to 300 million, Apple's loyal customer base and strong capital-return program contribute to its value [7][10] - American Express: Valued at $45.4 billion (15.8% of invested assets). This long-held investment benefits from its position as a leading payment processor and its ability to attract high-income cardholders [12][13] - Coca-Cola: Worth $28.8 billion (10% of invested assets). Coca-Cola's diverse product range and geographic presence provide stability, with a yield on cost of 62.8% from dividends [15][18] - Bank of America: Valued at $28.2 billion (9.8% of invested assets). The bank's capital-return program and sensitivity to interest rates position it well for economic growth periods [19][22]