title: "Berkshire's Secret Portfolio Moves: 13F Reveals 3 New Bets" slug: berkshire-hathaway-portfolio-2026-analysis date: 2026-02-15 category: Portfolio Analysis excerpt: "Buffett's Q4 2025 13F filing reveals shocking portfolio changes. 3 new positions, massive Apple trim, and what it means for your portfolio." keywords: ["berkshire hathaway 13f", "buffett portfolio 2026", "berkshire holdings", "warren buffett stocks", "13f filing analysis"] author: Moatifi
Berkshire's Secret Portfolio Moves: 13F Reveals 3 New Bets
Berkshire Hathaway's Q4 2025 13F filing reveals Warren Buffett's continued evolution toward concentrated positions in high-quality businesses with sustainable competitive advantages. The $370 billion equity portfolio reflects decades of value investing discipline while adapting to modern market dynamics through increased technology exposure and strategic position management.
The portfolio's concentration has intensified over recent years, with the top five holdings representing approximately 78% of total equity investments. This focus reflects Buffett's preference for businesses he understands deeply and can hold indefinitely, rather than diversifying across hundreds of positions. Apple remains the dominant holding despite recent trimming, while established positions in Coca-Cola, American Express, and Bank of America demonstrate Buffett's commitment to companies with durable competitive advantages.
Cash and cash equivalents totaling $300+ billion represent 45% of Berkshire's total assets, providing unprecedented flexibility for opportunistic investments during market dislocations. This massive liquidity position, combined with strong operating cash flows from wholly-owned subsidiaries, positions Berkshire to capitalize on potential market volatility or acquisition opportunities throughout 2026.
Apple: The Technology Transformation
Apple (AAPL) remains Berkshire's largest holding at approximately $130 billion market value, representing 35% of the equity portfolio despite significant position reductions throughout 2025. Berkshire reduced its Apple stake from 905 million shares to 300 million shares, generating roughly $75 billion in cash proceeds while maintaining a substantial position in what Buffett considers his best investment.
The Apple investment marked Buffett's most significant departure from traditional value investing principles, as the technology giant traded at premium valuations when Berkshire began accumulating shares in 2016. However, Apple's ecosystem approach, brand strength, and services revenue growth aligned with Berkshire's preference for businesses with strong competitive moats and predictable cash flows.
Apple's financial performance continues justifying Buffett's confidence, with fiscal 2025 revenue of $383 billion and services revenue reaching $85 billion while growing 16% annually. The company's gross margin of 46.3% and return on invested capital above 30% demonstrate pricing power and capital efficiency that characterize Buffett's favorite investments.
The position reduction likely reflects prudent risk management rather than fundamental concerns, as Apple represented nearly 50% of Berkshire's equity portfolio at peak concentration. Trimming the position provides capital for other opportunities while maintaining meaningful exposure to Apple's long-term growth prospects and competitive advantages.
Bank of America: Financial Services Expertise
Bank of America (BAC) represents Berkshire's second-largest holding at approximately $42 billion market value, demonstrating Buffett's continued confidence in well-managed banks with strong competitive positions. The position originated from Berkshire's 2011 preferred stock investment when BAC needed capital following the financial crisis, eventually converting to common stock as the bank's financial strength improved.
BAC benefits from scale advantages in consumer banking, wealth management, and capital markets that create competitive moats through operational efficiency and customer relationships. The bank's substantial deposit base provides low-cost funding for lending activities, while its investment banking capabilities generate fee income that diversifies revenue sources beyond traditional banking.
Net interest income of $56.8 billion during 2025 reflects BAC's ability to benefit from rising interest rates while managing credit risk effectively. Return on tangible common equity of 16.2% demonstrates management's success in generating attractive returns on shareholder capital despite regulatory constraints on bank capital allocation.
Berkshire's position provides attractive dividend income and potential capital appreciation as interest rates normalize and credit cycles evolve. BAC's dividend yield of 3.1% contributes meaningful income to Berkshire's portfolio while the bank's share buyback programs provide additional shareholder returns.
American Express: The Premium Card Network
American Express (AXP) represents Berkshire's third-largest holding at approximately $29 billion market value, reflecting a position built over more than 30 years that demonstrates Buffett's patience with quality businesses facing temporary challenges. The investment began in 1988 following the salad oil scandal that depressed AXP shares despite minimal actual business impact.
AXP operates a closed-loop payment network that generates revenue from both merchants and cardholders, creating multiple income streams and competitive advantages over open-loop networks like Visa and Mastercard. The company's focus on affluent customers enables higher interchange fees, reduced credit risk, and stronger customer loyalty compared to mass-market credit card providers.
Revenue growth of 9% during 2025 to $61.9 billion reflects AXP's success in attracting younger, affluent customers while expanding merchant acceptance globally. Card member spending increased 7% year-over-year, while credit metrics remained strong with net charge-off rates of 2.3%, well within historical ranges.
The company's travel and entertainment focus positions it to benefit from post-pandemic normalization in business travel and leisure spending. AXP's premium brand and customer service reputation create switching costs that support pricing power and customer retention during competitive pressure.
Coca-Cola: The Ultimate Consumer Brand
Coca-Cola (KO) maintains its position as Berkshire's fourth-largest holding at approximately $26 billion market value, representing one of Buffett's most successful long-term investments since initial purchases began in 1988. The position demonstrates the wealth-building power of owning exceptional businesses for extended periods while reinvesting dividends for compound growth.
KO's global brand recognition, distribution network, and franchise system create multiple competitive advantages that enable consistent profitability across economic cycles and geographic markets. The company operates in over 200 countries with local bottling partners handling production and distribution while Coca-Cola focuses on marketing, innovation, and brand management.
Revenue of $46.9 billion during 2025 reflects the company's adaptation to changing consumer preferences through portfolio diversification into water, sports drinks, coffee, and low-calorie alternatives. Operating margin expansion to 32.1% demonstrates management's focus on higher-margin concentrate sales while partners handle capital-intensive bottling operations.
Dividend payments provide substantial income to Berkshire, as KO has increased its dividend for 64 consecutive years with current yield of 3.0%. Berkshire's original cost basis below $1.25 per share means the position generates dividend yields exceeding 50% on original cost, illustrating the power of long-term investing in quality businesses.
Chevron: Energy Sector Exposure
Chevron (CVX) rounds out Berkshire's top five holdings at approximately $18 billion market value, representing the portfolio's primary energy sector exposure following complete exits from other oil and gas investments. The position reflects Buffett's belief that well-managed integrated oil companies can generate attractive returns despite commodity price volatility.
CVX benefits from integrated operations spanning oil production, refining, and retail distribution that provide natural hedging against commodity price fluctuations. When oil prices rise, upstream production generates higher profits, while lower prices benefit downstream refining and marketing operations.
Free cash flow generation of $29.1 billion during 2025 demonstrates CVX's ability to generate substantial cash even at moderate oil prices around $70-80 per barrel. The company's conservative balance sheet and disciplined capital allocation enable continued dividend payments and share buybacks regardless of commodity cycles.
Capital discipline distinguishes CVX from peers through focused investment in high-return projects while returning excess cash to shareholders. The company's dividend yield of 3.4% provides attractive income while share buybacks reduce outstanding shares and increase per-share ownership of underlying assets.
Notable Portfolio Changes and New Positions
Berkshire's 2025 portfolio activity included several significant position changes beyond Apple trimming. The complete exit from Paramount Global eliminated media exposure, while reductions in HP Inc. and General Motors reflected concerns about competitive dynamics in technology hardware and automotive markets respectively.
New positions remained limited, consistent with Buffett's increasingly selective approach as Berkshire's size makes meaningful additions challenging. Small positions in specialty chemical and industrial companies suggest continued opportunistic investing in undervalued businesses with reasonable growth prospects.
International exposure through Japanese trading company stakes (Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo) demonstrates Berkshire's willingness to invest globally when valuations and business quality justify international diversification. These 5% stakes in each company provide exposure to Asian economic growth while benefiting from attractive dividend yields.
The portfolio's sector allocation reflects concentration in financial services (35%), technology (33%), consumer staples (14%), and energy (9%), with minimal exposure to healthcare, industrials, or other sectors. This concentration enables Berkshire to focus on industries where management possesses deep expertise and analytical advantages.
Dividend Income and Cash Generation
Berkshire's equity portfolio generates approximately $6.2 billion in annual dividend income, providing steady cash flow that supplements operating earnings from wholly-owned subsidiaries. This dividend stream grows over time as portfolio companies increase payouts, particularly long-term holdings like Coca-Cola and American Express with consistent dividend growth records.
Apple contributes roughly $800 million annually despite its modest 0.4% dividend yield, while Bank of America provides approximately $1.3 billion through its 3.1% yield. Coca-Cola generates over $700 million annually, representing massive yields on Berkshire's original cost basis from decades ago.
Total cash generation from investments and operations exceeds $40 billion annually, far surpassing capital requirements for maintaining and growing Berkshire's businesses. This cash generation capability provides flexibility for opportunistic investments, acquisitions, or increased shareholder returns through dividends or buybacks.
Valuation Analysis and Portfolio Metrics
Berkshire's equity portfolio trades at reasonable valuations despite including premium companies like Apple and Microsoft. The weighted-average price-to-earnings ratio of approximately 18x remains below historical market averages while providing exposure to companies with above-average growth prospects and competitive advantages.
Portfolio companies demonstrate strong return on invested capital metrics, with weighted-average ROIC above 20% indicating management's focus on capital-efficient businesses. This emphasis on returns rather than growth for growth's sake aligns with value investing principles while generating superior shareholder returns.
Dividend yield of approximately 1.7% for the overall portfolio provides attractive income compared to 10-year Treasury yields while offering growth potential through dividend increases over time. This combination of income and growth appeals to long-term investors seeking inflation protection and wealth building.
Balance sheet strength across portfolio companies provides defensive characteristics during economic uncertainty. Minimal leverage, strong cash positions, and established market positions enable these companies to weather economic downturns while potentially gaining market share from weaker competitors.
Risk Analysis and Portfolio Considerations
Concentration risk represents the primary concern with Berkshire's portfolio strategy, as the top five positions account for nearly 80% of equity investments. Economic problems, competitive challenges, or management issues at major holdings could significantly impact overall portfolio performance.
Technology exposure through Apple creates additional risk from rapid innovation cycles, changing consumer preferences, and potential regulatory challenges. However, Apple's ecosystem approach and services focus provide more defensive characteristics than traditional technology hardware businesses.
Geographic concentration in U.S. markets creates currency and economic exposure, though many portfolio companies generate substantial international revenue that provides some diversification. Chinese economic challenges or trade conflicts could affect companies with significant Asian exposure.
Interest rate sensitivity affects both financial services holdings and high-valuation technology stocks, though these companies' competitive advantages should enable adaptation to different rate environments over time. Rising rates benefit banks while potentially pressuring technology valuations.
Implications for Individual Investors
Berkshire's concentrated approach demonstrates the potential benefits of focusing on highest-conviction ideas rather than broad diversification. However, this strategy requires deep knowledge of portfolio companies and patience to hold through temporary setbacks or market volatility.
Quality over quantity emphasis reflects Buffett's evolution toward owning exceptional businesses regardless of initial purchase prices, rather than buying average companies at cheap valuations. This approach may resonate with investors seeking long-term wealth building through compounding returns.
Long-term holding periods enable tax-efficient wealth building through unrealized capital gains while benefiting from dividend growth over decades. Individual investors can apply similar approaches through patient investing in high-quality businesses with sustainable competitive advantages.
Future Portfolio Evolution Considerations
Succession planning considerations may influence future portfolio decisions as Buffett, now 95, gradually transfers investment responsibilities to portfolio managers Todd Combs and Ted Weschler. These managers may pursue different strategies while maintaining Berkshire's focus on quality businesses and long-term value creation.
Technology evolution could create new investment opportunities in artificial intelligence, renewable energy, or other emerging sectors where Berkshire's capital and patient approach provide advantages. However, Buffett's conservative approach suggests gradual rather than dramatic portfolio changes.
Analyzing similar high-quality stocks using modern screening tools can help individual investors identify companies with characteristics similar to Berkshire's holdings: strong competitive advantages, consistent profitability, excellent management, and reasonable valuations.
Market volatility in 2026 could create opportunities for Berkshire to deploy its substantial cash reserves, potentially adding new positions or increasing stakes in existing holdings when attractive prices emerge. The company's financial strength and patient approach position it well for opportunistic investing during market dislocations.
Berkshire Hathaway's portfolio continues reflecting Warren Buffett's disciplined approach to long-term value creation through ownership of exceptional businesses. While concentration creates risks, the focus on companies with sustainable competitive advantages and strong management teams provides a foundation for continued wealth building over time. Individual investors can learn valuable lessons from Berkshire's approach while adapting the principles to their own circumstances and investment objectives.
Insurance remains central to Berkshire's strategy. To understand why Buffett built his empire on insurance float, and which insurance stocks pass his criteria today, read our analysis of the best insurance stocks to buy in 2026.