2 Stocks to Buy From the 5 That Make Up Roughly 61.5% of Berkshire Hathaway's Portfolio

Berkshire Hathaway's portfolio, led by Warren Buffett and now managed by Greg Abel, has always employed a concentrated investment strategy. This approach, where the team invests heavily in a few select stocks, contrasts with the more diversified practices of many general investors. As of now, roughly five stocks make up 61.5% of Berkshire's $365 billion portfolio. Among these, the article suggests two stocks that are worth considering: Apple and Coca-Cola.

Buffett and Berkshire have held American Express and Coca-Cola since the 1980s and 1990s, respectively, and have not sold these shares since. The company's first move into Apple came in 2016, following Buffett's observation of his friend's distress over losing his iPhone. Apple once comprised roughly 40% of Berkshire's portfolio.

Bank of America was also a significant addition to Berkshire's holdings during the pandemic. Initially invested in during the Great Recession in 2011, Berkshire has since increased its position, though it has been reducing it in recent quarters.

Alphabet, formerly known as Google, is a newer addition to Berkshire's portfolio, boosted by tens of billions of dollars this year. This is also Berkshire's first substantial investment in an AI hyperscaler. While Apple is a Magnificent Seven company, it has not heavily invested in data centers, making it less reliant on AI infrastructure.

However, its consumer devices are likely to incorporate AI heavily, serving as a bridge between technology and consumers. Apple's commitment to shareholders, including repurchasing over $850 billion worth of stock since 2013, further enhances its appeal. Coca-Cola, on the other hand, is a solid consumer staples stock, providing consistent performance across economic cycles.

It has increased its dividend for over 64 years, making it a Dividend King. With a nearly 2.3% trailing dividend yield, Coca-Cola remains a stable investment option.