The Motley Fool·2026-01-19 14:15Core Viewpoint - Adding blue chip stocks, particularly those held by Berkshire Hathaway, can be a sound investment strategy due to their historical performance and stability. Group 1: Berkshire Hathaway's Portfolio - Berkshire Hathaway's portfolio is heavily concentrated, with its top four holdings comprising nearly 56% of its total stock portfolio [2] - The top four holdings are Apple (19.7%), American Express (17.3%), Bank of America (9.5%), and Coca-Cola (9.1%) [3] Group 2: Apple - Apple is the largest holding in Berkshire Hathaway's portfolio and has built a strong ecosystem around its products, enhancing customer retention [4][5] - The company generates significant free cash flow and has a growing service business that provides higher margins compared to hardware sales [6] - As of the latest data, Apple's market cap is $3.8 trillion, with a gross margin of 46.91% and a dividend yield of 0.40% [7] Group 3: American Express - American Express is positioned as a luxury brand, attracting affluent customers and generating steady income through premium card fees [8] - The company owns its payment network, allowing it to earn from transactions, annual memberships, and interest, differentiating it from competitors like Visa and Mastercard [9] - American Express has a market cap of $251 billion, a gross margin of 61.04%, and a dividend yield of 0.90% [11] Group 4: Bank of America - Bank of America operates across various banking sectors, making it a stable investment tied to the U.S. economy's long-term growth [12] - The bank's "too big to fail" status provides a safety net, enhancing consumer trust and regulatory stability [13] - As of the end of 2025, Bank of America had over $285 billion in cash and cash equivalents and over $3.4 trillion in assets, with a dividend yield of 2.04% [15] Group 5: Coca-Cola - Coca-Cola is a long-standing holding of Berkshire Hathaway, known for its stability and consistent dividend payments, having increased its annual payout for 63 consecutive years [16] - The company's products maintain strong sales regardless of economic conditions, providing it with pricing power [17] - Coca-Cola is considered a defensive stock, making it a reliable choice for long-term investors [16][18]