Buffett’s 2025 Portfolio Playbook
Berkshire's Latest Moves: More Apple, More AXP, Trims Coca-Cola and Nu Bank, and a $325B Cash Stack
Warren Buffett just shook up Berkshire Hathawayâs $267.2 billion portfolio, and the latest moves reveal a clear strategy: more cash, fewer banks, and a surprising bet on fast food.Â
With Apple still dominating (28.1% of the portfolio) and a massive $325.2 billion cash reserve, Berkshire is positioning itself for big opportunities.Â
Figure 1: Top Position Changes (From September 30, 2024, to December 31, 2024)â-âThe biggest increases and decreases in Berkshire Hathaway's portfolio over the last quarter.
Buffettâs Biggest Moves in Q4 2024
The Apple Rollercoaster: +1.9%Â ($5.2B)
Berkshire slashed its Apple stake by 66% since early 2024 but added back $5.2 billion in Q4. Why? Likely because Apple dipped below $175/share, and Buffett saw an opportunity.Â
Appleâs services revenue is up 19% year-over-year, and with 2.2 billion active devices, the long-term story still holds (Yahoo Finance, brk-b.com).
More American Express, Less Bank of America
Berkshire added $3.9 billion to its American Express (AXP) position, betting on its closed-loop network.Â
The Credit Card Competition Act could weaken Visa and Mastercard, leaving AXP in a prime spot to gain market share.Â
Meanwhile, Buffett trimmed Bank of America (BAC) by $1.8 billion, likely to avoid regulatory scrutiny as his stake neared 10% (moomoo.com).
A Surprising Bet on Dominoâs Pizza: +0.2%Â ($450M)
Berkshire added a small but notable $450 million stake in Dominoâs Pizza (DPZ).Â
With 45% of its orders placed digitally and store-level EBITDA margins hitting 29.4%, DPZ is an inflation-resistant cash machine.Â
Buffett seems to be favoring consumer discretionary plays over traditional energy and banking bets.
Selling Off Coca-Cola for the First Time in Decades: -1.5%Â (-$3.8B)
Buffett took some profits on Coca-Cola (KO), selling $3.8 billion worth of shares.Â
With KO trading at a forward P/E of 26xâââwell above its 10-year averageâââthis move aligns with Berkshireâs valuation discipline.Â
The stock still makes up nearly 10% of the portfolio, but this marks a rare cut to one of Buffettâs longest-held positions (kiplinger.com).
Exiting NU Holdings: Less Emerging Market Risk? -0.3%Â (-$764M)
Despite NUâs rapid 45% YoY customer growth, Buffett slashed his stake by $764 million.Â
Why? The Brazilian real dropped 18% against the U.S. dollar in 2024, and lower interest rates are squeezing returns.Â
Buffett isnât known for taking emerging market risks, and this move proves it (gurufocus.com).
Latest Portfolio Asset Allocation
Figure 2: Portfolio Allocation by Asset (As of December 31, 2024)â-âA breakdown of Berkshire Hathaway's holdings by asset.
Berkshireâs portfolio as of December 31, 2024, is dominated by a few key assets:
- Apple (AAPL): 28.1% ($75.1B)
- American Express (AXP): 16.8% ($45.0B)
- Bank of America (BAC): 11.2% ($29.9B)
- Coca-Cola (KO): 9.3% ($24.9B)
- Chevron (CVX): 6.4% ($17.2B)
- Occidental Petroleum (OXY): 4.9% ($13.1B)
- Moodyâs (MCO): 4.4% ($11.7B)
- Kraft Heinz (KHC): 3.7% ($10.0B)
- Chubb (CB): 2.8% ($7.5B)
- DaVita (DVA): 2.0% ($5.4B)
- Other holdings make up the remaining 10.4% of the portfolio.
Berkshireâs top five holdings still account for nearly 75% of its total portfolio value.Â
This reflects Buffettâs preference for concentrated bets in companies with strong competitive advantages.
Portfolio Industry Allocation
Figure 3: Portfolio Allocation by Industry (As of December 31, 2024)â-âAn overview of Berkshire Hathaway's industry exposure.
Buffettâs allocations also show a preference for durable, cash-generating businesses across key industries:
- Electronic Computers (Apple): 28.1% ($75.1B)
- Finance Services: 17.0% ($45.4B)
- National Commercial Banks: 12.1% ($32.3B)
- Beverages (Coca-Cola): 9.8% ($26.2B)
- Petroleum Refining: 6.4% ($17.2B)
- Crude Petroleum & Natural Gas: 4.9% ($13.1B)
- Consumer Credit & Financial Services: 4.4% ($11.7B)
- Food Manufacturing (Kraft Heinz): 3.7% ($10.0B)
- Insurance & Risk Management: 2.8% ($7.5B)
- Healthcare Services: 2.0% ($5.4B)
The dominance of financial services, consumer staples, and energy suggests Berkshire is balancing between stable cash flows and inflation hedges.Â
Buffettâs recent moves into consumer discretionaryâââlike Dominoâs Pizzaâââshow a potential shift toward more resilient, consumer-driven investments.
Key Market Trends Impacting Berkshireâs Strategy
- Regulatory Compliance: The reduction of BAC below 10% avoids enhanced SEC scrutiny, while keeping AXP below 20% prevents its classification as a bank holding company.
- Valuation Discipline: The Apple and Coca-Cola sales align with Buffettâs philosophy of trimming positions at premium valuations.
- Cash as a Strategic Asset: Berkshireâs $325.2 billion cash positionâââ88% in short-term Treasuriesâââacts as dry powder for acquisitions and a hedge against market overvaluation.
- Sector Rotation: Moving into Dominoâs and trimming energy stocks like Chevron and Occidental Petroleum suggests a focus on recession-resistant consumer spending.
Final Take: Buffett Is Playing the Long Game
With a 14% portfolio turnoverâââabove his 10-year averageâââBuffett is making more moves than usual.Â
Heâs stacking cash, cutting risk, and selectively adding where he sees opportunity.
If history repeats, Berkshireâs cautious positioning means one thing: Buffett is waiting for a crash to deploy his war chest.
The question is: When will he strike?
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