28.4% of Warren Buffett's $303 Billion Portfolio Is Invested in 3 Stocks He Plans to Hold Forever

Core Viewpoint - Warren Buffett has sold over $134 billion worth of stocks from Berkshire Hathaway's portfolio, but he has no intention of selling three specific stocks that account for 28.4$303 billion portfolio, which may be worth considering for investors [1][2]. Group 1: American Express - American Express (AXP) represents 15.9% of Berkshire's portfolio and has been a long-term investment for Buffett since the 1960s, currently holding 21.5% of the company due to share repurchases [3][6]. - The company operates its own payment network, allowing it to control more of the transaction economics compared to traditional banks [4][5]. - In 2024, American Express generated $35.2 billion in discount revenue, with a 16$8.5 billion to revenue [6][7]. - The stock has more than doubled in value over the last 15 months, but currently trades at a forward PE of 21, which is considered historically expensive [8]. Group 2: Coca-Cola - Coca-Cola (KO) accounts for 8.4% of Berkshire's portfolio, with Buffett being a long-time fan since the late '80s [9]. - The brand's strength has allowed it to raise prices, achieving a 10% year-over-year price increase last quarter [10]. - Coca-Cola's scale provides advantages in supply chain control and distribution agreements, facilitating product expansion [11]. - The company paid Berkshire $776 million in dividends in 2024, with a history of 62 consecutive years of dividend increases [12]. - Coca-Cola trades at a forward PE of around 22, which aligns with its historical average [13]. Group 3: Occidental Petroleum - Occidental Petroleum (OXY) is a newer addition to Berkshire's portfolio, with Buffett investing$10 billion in preferred shares in 2019 [14]. - Berkshire currently holds approximately $8.5 billion in preferred shares and has acquired 28.2$1 billion in free cash flow from a recent acquisition, assuming oil prices remain above $70 per barrel [17]. - The stock trades at an enterprise value of just 5.3 times analysts' estimates for 2025 EBITDA, making it an attractive consideration for investors [18].