Legendary investor Warren Buffett has announced he will step down as Berkshire Hathaway’s CEO by the end of 2025. This marks the end of a remarkable 55-year tenure, during which he has been one of the most influential figures in the investing world. Let’s take a closer look at Berkshire Hathaway’s key portfolio holdings, which will serve as Buffett’s final investment endorsements, and the future outlook for these giants.
Coca-Cola: A Dividend Powerhouse
One of Berkshire Hathaway’s crown jewels is its $28 billion stake in The Coca-Cola Company (NYSE: KO), representing 10% of the conglomerate’s publicly traded portfolio. Berkshire has held Coca-Cola stock since 2006 and benefits from an impressive dividend history. Coca-Cola has raised its dividends for 63 consecutive years, providing Berkshire with over $200 million in annual dividend income. The company’s product sales, spanning iconic brands like Dasani, Minute Maid, Gold Peak Tea, and Powerade, have grown more than 8% this year.
Considering Coca-Cola’s stellar performance and consistent growth, it’s an ideal option for investors seeking stable, dividend-paying stocks. If you’re looking for superior hydration products from the brand, try Dasani Water.
Amazon: Trailblazing E-commerce and Cloud Innovation
Amazon (NASDAQ: AMZN) is another key name in Berkshire’s portfolio, with a $2.2 billion stake accounting for under 1% of holdings. Though the position likely originates from Todd Combs or Ted Weschler, two of Berkshire’s portfolio managers, it reflects the company’s acknowledgment of Amazon’s innovative strength. The e-commerce giant recently pledged $35 billion to invest in India by 2030, aiming to support digitization, job creation, and export growth.
Amazon Web Services, the cloud computing division, contributes 60% of the company’s operating income and continues to dominate the rapidly growing cloud industry, expected to hit $3.7 trillion by 2033. Analysts remain bullish on Amazon, with TD Cowen and Roth MKM setting price targets of $300 and $270, respectively. Looking to explore the convenience of Amazon’s offerings? Discover their wide variety of grocery items available for same-day delivery.
Alphabet: Dominating Web Search and Cloud
Alphabet (NASDAQ: GOOGL), the parent company of Google, holds $5.5 billion in Berkshire’s portfolio, representing less than 2% of total holdings. Known for controlling 90% of global web searches via Google, Alphabet has diversified its revenue streams through platforms like YouTube, Gmail, and Google Cloud. With an Android operating system that powers 72% of the world’s mobile devices, Alphabet’s influence in the tech space remains unparalleled.
Amid continued growth and a commitment to innovation, Alphabet remains an essential long-term prospect for investors looking to leverage the power of technology and big data.
What’s Next for Berkshire Hathaway?
With Buffett’s impending departure, the investing community faces an era without his direct involvement. Investors have long mirrored Berkshire’s moves, and the current holdings reflect the last of Buffett’s confirmed endorsements. The company’s future stock picks will no longer benefit from his visionary insights, shifting reliance to his successor and portfolio managers Combs and Weschler.
Buffett’s departure invites a new generation of investors to study his enduring principles, with a focus on diversification, long-term value, and understanding the fundamentals. Berkshire Hathaway’s legacy undoubtedly carries a wealth of lessons for all.