Warren Buffett Has 48% of His $281 Billion Portfolio Invested in 3 Exceptional Stocks

Core Insights - Warren Buffett's investment strategy focuses on high-conviction stocks, with a portfolio valued at $281 billion, where nearly half is concentrated in three key stocks [2]. Group 1: Apple Inc. (22% of Portfolio) - Buffett first invested in Apple in 2016, recognizing its strong competitive moat due to the iPhone, which has generated over $200 billion in sales annually for the past three years [4][5]. - Apple's services segment is a significant growth driver, currently achieving a $100 billion annual run rate, contributing to expanding profit margins [6]. - Despite facing challenges such as tariffs and competition in artificial intelligence, Apple remains a solid investment with a current valuation of about 28 times forward earnings [7][9]. Group 2: American Express (16% of Portfolio) - American Express has been a long-term holding for Buffett, with an initial investment of $1.3 billion in the 1990s now valued at nearly $45 billion [10]. - The company differentiates itself by being both a card issuer and a payments network, allowing it to capture more revenue from higher interchange fees [11]. - Amex has successfully increased card fees, reporting an 18% year-over-year rise in net card fees, while its interest income has shown slower growth due to its size [12][13]. - The focus on high-income households provides Amex with insulation from economic downturns, justifying its premium valuation compared to competitors [14]. Group 3: Coca-Cola (10% of Portfolio) - Coca-Cola has been a stable investment for over 30 years, with an original investment of $1.3 billion now worth about $29 billion, alongside significant annual dividends [15]. - The company's strong global brand and pricing power have allowed it to navigate inflation effectively [16]. - Coca-Cola's scale enables cost-effective localized supply chains, helping it mitigate the impact of global trade pressures better than competitors [17][18]. - The company reported a 6% revenue growth and a 1% increase in earnings per share in the first quarter, outperforming rival PepsiCo [19]. - Coca-Cola's stock has appreciated 15% year-to-date, trading at 24 times forward earnings, which may be justified given its strong market position and a 2.8% dividend yield [20].