Key Points
Apple fans continue to upgrade to new iPhones and buy connecting Apple products.
Younger customers are driving growth at American Express, indicating a long growth runway.
Coca-Cola pays a growing, reliable dividend and can protect your portfolio under adverse circumstances.
Greg Abel has already taken over as CEO of Berkshire Hathaway(NYSE: BRKA)(NYSE: BRKB), but the fourth-quarter trades, which were just released, were still under the leadership of legendary investor and previous CEO Warren Buffett.
As he took leave, Buffett shuffled some of his positions, but he left his trio of favorite stocks with an overwhelmingly dominant spot in the portfolio. Apple(NASDAQ: AAPL), which had ballooned to about 50% of the total equity portfolio a few years ago, is still the largest position, but it now sits at around 20%. American Express(NYSE: AXP) and Coca-Cola(NYSE: KO) are the two longest-held positions and haven't been sold at all, and they account for about 15% and 10%, respectively, of the $320 billion equity portfolio.
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Buffett has said that he would never sell these stocks, but that doesn't mean Abel will hold to that in his new position. However, these stocks have done very well for Berkshire Hathaway, and they still offer tremendous value for investors today.
Image source: The Motley Fool.
Apple: The unbeatable tech ecosystem
Although there have been plenty of doubters over the past few years, Apple proved them wrong in a big way with its recent holiday sales. iPhone revenue increased a mind-blowing 23% year over year, which is an impressive feat considering how big it already is, how many other smartphone makers there are, and how Apple Intelligence has been underestimated.
It's all about the ecosystem. Fans love Apple devices, and there's no substitute for an excellent product. Apple's devices, starting with the iPhone, which accounts for about half of total sales, all work together. People who buy into the Apple platform typically buy the interconnecting products, and they frequently upgrade when there are new launches. That keeps revenue growing year after year.
The model also extends to the company's fairly young services segment, which is a high-margin business that enhances the ecosystem and pads the bottom line.
Apple recently announced a partnership with Alphabet to power its large-language models and ramp up Apple Intelligence. That sounds like a smart and deliberate way to focus on what it does best and source out the AI.
Expect a revamped Siri and more powerful AI features to come out later this year, and for Apple to maintain its moat and its edge over the competition.
American Express: The membership model
American Express has changed along with its membership base, refreshing its cards and rewards system to better match today's younger consumers. It still has the same model, which relies on membership fees and targets an affluent clientele, but the millennial and Gen Z members who are driving growth right now should boost the business for a long time as they grow along with the company. Gen Z members, for example, accounted for only 6% of total revenue in the 2025 fourth quarter, but that was a 38% year-over-year increase, the highest by far for any age cohort.
That's how American Express, a 175-year-old company, has been able to deliver double-digit growth and beat the market for years. Its target consumer is more resilient under pressure, and it has performed well despite the inflationary environment.
It ended 2025 with a 10% increase in both revenue and earnings per share (EPS) for the year, and it expects similar results in 2026.
The company added 2.9 million new card acquisitions in the fourth quarter, 65% of which were millennial and Gen Z, and 73% of which were fee-based. Fee income increased 16% year over year in the quarter, and this is a model that should continue to work and reap rewards for the company for years.
Coca-Cola: The world's favorite beverages
Coca-Cola is the largest beverage company in the world, and it has a well-organized model that nearly guarantees continued success. It markets its beloved Coca-Cola-branded drinks, which have strong pricing power and sell in high volume, and it acquires smaller, higher-growth brands that boost total company growth. These smaller companies get fitted into the company's vast and efficient global distribution network, leading to better margins for those brands and trickling down to the bottom line.
That's how the company has demonstrated admirable performance in a challenging operating environment. Organic revenue increased 5% year over year in the 2025 fourth quarter and also for the full year, while comparable EPS increased 6% in the fourth quarter and 23% for the full year.
What stands out about Coca-Cola is its almost unmatched dividend. Coca-Cola is a Dividend King, which means it's part of an elite cadre of stocks that have raised their dividends annually for at least 50 years. Coke has one of the best streaks on the market, having raised the dividend for 63 years annually.
The dividend usually yields around 3%, but because the stock has performed so well recently, it yields 2.6% at the current price. Investors can count on Coca-Cola stock to perform well when there's market volatility and provide protection for their investments, while counting on reliable passive income at all times.
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American Express is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in American Express and Apple. The Motley Fool has positions in and recommends Alphabet, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
