Key Points
Berkshire Hathaway has massive investments in Apple and American Express.
Amazon Web Services is growing quickly.
Kroger and Chevron aren’t flashy, but they are solid consumer and energy plays for a buy-and-hold portfolio.
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It’s hard to believe that this is the last quarter that the legendary Warren Buffett will be leading Berkshire Hathaway — the former textile company that he turned into a massive conglomerate with its fingers in real estate, insurance, railroads, and energy.
Over Buffett’s 60-year career, he’s also assembled a mighty investment portfolio for Berkshire Hathaway, comprising dozens of companies and valued at more than $300 billion. Buffett’s buy-and-hold investment style led Berkshire Hathaway to massive gains, compounding 19.9% annually versus the S&P 500‘s compounded annual gain of 10.4%.
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Buffett, now 95, is retiring at the end of the year, but the lessons he’s taught us all will persevere — find companies with strong management, leading positions in their industries, reliable revenues, and strong histories of earnings.
As you consider your investing portfolio in a post-Buffett world, here are five stocks that provide an outstanding starting point for any portfolio.
Image source: The Motley Fool.
1. American Express
Berkshire Hathaway owns a massive 22% stake in credit card giant American Express (NYSE: AXP) — notable because its stake in competitors Visa and Mastercard are only 0.4% each. So why does Buffett like American Express so much?
First, the company has a unique position, in that it caters to a more affluent clientele through its business credit accounts and Gold and Platinum individual credit accounts. Its rewards and benefits, including travel and entertainment experiences, are unmatched. That’s why American Express can afford to upcharge its Platinum card annual fee to a whopping $895 — and why customers are willing to pay it.
Secondly, American Express also makes personal loans, which is a service that Mastercard and Visa don’t offer. American Express earned $5.97 billion in the third quarter on interest from loans, providing a meaningful extra revenue stream.
2. Amazon
Buffett famously was late to invest in Amazon (NASDAQ: AMZN), but he’s surely been happy with the investment. Buffett likes companies that have leading roles in their industries, and Amazon fits the bill two ways — its huge e-commerce division and its industry-leading cloud computing division.
Amazon.com generated $147.16 billion in revenue from its international and North American sales, but it only has a small 4% profit margin there. Amazon Web Services (AWS) brings in less revenue at $33 billion in the third quarter, but with a profit margin of 34.6%, it’s become a moneymaker that is getting stronger every quarter.
Barclays analyst Ross Sandler wrote glowingly about the potential of AWS in a recent research note. “Despite playing a bit of catch-up, AWS has secured significant AI capacity over the next several years,” he wrote. “We expect growth to accelerate from here.”
3. Apple
Apple (NASDAQ: AAPL) has long been Berkshire Hathaway’s biggest holding. And even though Buffett’s team reduced its shares this year, Apple stock still makes up 24.1% of Berkshire Hathaway’s overall portfolio, with 280 million shares valued at $75.5 billion.
Apple’s biggest product is still the iPhone, which provided $49 billion of Apple’s $102.4 billion in sales for the fiscal fourth quarter of 2025. But the area that I think people underappreciate is the lucrative Services division, which includes the App Store, Apple Pay, Apple Music, and Apple TV. Services brought in $28.7 billion in the fourth quarter, up 15.1% from a year ago.
Apple’s revenues have been flat for a couple of years, but it showed improvement in the second half to push annual revenue above $400 billion for the first time.
4. Kroger
Kroger (NYSE: KR) isn’t as flashy as others on this list, but I don’t think anyone could ever accuse Buffett of being flashy, either. Instead, it’s a classic defensive play. Even when inflation is up or the economy is on shaky ground, people are going to need groceries. That’s why Berkshire Hathaway’s portfolio includes 50 million shares of Kroger stock.
Kroger has more than 2,700 stores and operates brands that include Kroger, Fred Meyer, Ralph’s, and Harris Teeter. It also maintains more than 40 food production and manufacturing facilities for making private-label, low-cost products. Kroger has been emphasizing these brands as of late as they are cheaper than name-brand items and give Kroger a bigger profit margin.
These store brands are usually much cheaper than name-brand items and provide Kroger with greater profit margins — particularly when customers are looking to stretch their grocery dollars.
5. Chevron
Buffett believes in energy stocks, and with Chevron (NYSE: CVX), Berkshire Hathaway has one of the biggest. Its 122 million shares mean Berkshire has a 6% stake in the multinational energy company.
And Chevron is rebounding nicely this year after hitting a low in April. Currently the stock price is up 7% in 2025, despite lower oil prices and global tensions.
Chevron set records in the third quarter for production, with U.S. production up 27% and global production increasing 21% from a year ago. But because prices are lower, Chevron’s revenue was down from last year — it reported $3.53 billion in the third quarter, versus $4.48 billion a year ago. Earnings per share of $1.82 were down from $2.48 in the third quarter of 2024.
While this hasn’t been the best year for Chevron stock, it’s a solid long-term play. And its dividend yield of 4.5% is a welcome addition to any portfolio.
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American Express is an advertising partner of Motley Fool Money. Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, Chevron, Mastercard, and Visa. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
