The Motley Foolยท2025-07-18 07:51Core Insights - Warren Buffett, CEO of Berkshire Hathaway, has achieved a cumulative return of nearly 5,800,000% on Class A shares over 60 years, significantly outperforming the S&P 500 by almost 140 times [2] - Buffett's investment strategy focuses on concentrating capital in a few high-conviction stocks, with 58% of Berkshire's $292 billion portfolio invested in just four major holdings [5] Group 1: Major Holdings - Apple is the largest holding at $62.6 billion, representing 21.5% of invested assets, although Buffett has sold 67% of his stake since September 2023 [6][7] - American Express is the second-largest holding at $48.7 billion, accounting for 16.7% of invested assets, benefiting from its dual role as a payment processor and lender [12][13] - Bank of America is the third-largest holding at $29.7 billion, making up 10.2% of invested assets, with Buffett selling shares due to profit-taking and expectations of declining interest rates [16][17] - Coca-Cola is the fourth-largest holding at $27.8 billion, representing 9.5% of invested assets, known for its stable cash flow and strong brand loyalty [21][22] Group 2: Investment Rationale - Buffett values companies with sustainable competitive advantages, as seen in his long-term investments in Apple, American Express, Bank of America, and Coca-Cola [4][21] - The investment in Apple is supported by its strong consumer loyalty and growth in subscription services, despite stagnant device sales [8][10] - American Express attracts high-earning clientele, which helps mitigate risks during economic downturns [15] - Coca-Cola's geographic diversity and consistent cash flow make it a reliable investment, with a significant yield on cost due to a low cost basis [23][25]