Berkshire Hathaway Allocates Over Half Its Portfolio to Just Four Companies

2026-01-20 companies

Omaha, Tuesday, 20 January 2026.
Entering a new era, Berkshire Hathaway maintains high conviction by holding 56% of its assets in Apple, American Express, Bank of America, and Coca-Cola.

New Leadership, Same High-Conviction Strategy

As of January 19, 2026, analysis confirms that Berkshire Hathaway continues to defy modern diversification theories, with 56% of its massive equity portfolio concentrated in just four names [6]. While the conglomerate entered a new leadership era following Warren Buffett’s retirement on December 31, 2025 [8], the portfolio strategy remains heavily weighted toward long-term incumbents. The “Big Four” consists of Apple, American Express, Bank of America, and Coca-Cola, creating a bedrock of stability even as market dynamics shift in the new year [1][2].

Breaking Down the ‘Big Four’

Apple (AAPL) remains the anchor, representing 19.7% of the portfolio, despite Berkshire reducing its stake by nearly 15% in the third quarter of 2025 [1][5]. This reduction came amidst growing investor caution regarding Apple’s positioning in the artificial intelligence sector as of mid-January 2026 [1]. Following Apple, American Express (AXP) commands a 17.3% share, valued for its closed-loop payment network and affluent customer base [1]. Bank of America (BAC) and Coca-Cola (KO) round out the top tier with 9.5% and 9.1% weightings respectively, with the latter serving as a defensive play boasting 63 consecutive years of dividend increases [1].

The Transition of Power and Valuation

The commencement of 2026 marks a pivotal shift for the Omaha-based giant. Following a tenure spanning over half a century, Warren Buffett officially stepped down as CEO at the end of 2025, handing the reins to Greg Abel, whose salary was set at $25 million on January 6, 2026 [5][8]. The market has responded to this transition; as of January 20, 2026, Berkshire Hathaway’s Class B shares (BRK.B) were trading at $493.29, capitalizing the company at over $1.06 trillion [8]. This valuation reflects a Price-to-Earnings (P/E) ratio of 15.77, suggesting that investors remain confident in the conglomerate’s earning power despite the departure of its legendary architect [6][8].

Capital Allocation Outlook

Despite the heavy concentration in equities, the firm has adopted a cautious stance toward new acquisitions. Data indicates that Berkshire was a net seller of stocks for twelve consecutive quarters ending September 30, 2025, accumulating a significant cash position often described as a “mountain” due to a perceived lack of high-value investment opportunities [5]. This disciplined approach aligns with the company’s long-standing philosophy of favoring businesses with “wide moats,” such as Coca-Cola and American Express, over speculative growth [5]. As the company navigates 2026 under new leadership, the heavy reliance on these four equities underscores a continued belief in their long-term franchise value [1][5].

Sources

Berkshire Hathaway Portfolio Strategy