TLDR
- Berkshire Hathaway holds over $300 billion in investments across 40+ companies with strong management teams and dependable earnings
- Amazon’s AWS cloud division generates 55% of net income despite only 18% of revenue, making it Buffett’s key growth driver
- Occidental Petroleum represents Buffett’s favorite energy play with a 26.9% stake due to excellent management practices
- Bank of America remains Buffett’s top bank holding with $30 billion invested, offering stable dividends and diverse revenue streams
- Pool Corp and Domino’s Pizza are Buffett’s newest additions, each worth over $1 billion as he targets smaller companies
Warren Buffett’s Berkshire Hathaway continues to demonstrate the Oracle of Omaha’s legendary investment approach. The company now manages over $300 billion in equity investments across more than 40 companies.
Berkshire’s investment strategy focuses on companies with strong management teams and dependable earnings. This approach has delivered exceptional returns, with Berkshire shares growing at 19.9% annually from 1965 to 2024 compared to 10.4% for the S&P 500.
Buffett faces new challenges in today’s market environment. Berkshire holds $344 billion in cash as finding quality investment opportunities becomes increasingly difficult during the current bull market.
The investment giant has been selling holdings as valuations climb to unreasonable levels. Over the past four quarters, Berkshire sold roughly $58 billion worth of stocks while only purchasing about $12 billion.
Amazon Remains a Cloud Computing Powerhouse
Amazon represents one of Buffett’s most successful recent investments. Berkshire built its $2.3 billion Amazon position starting in 2019, though Buffett admits he regrets not investing sooner.
Amazon Web Services drives the company’s profitability despite being smaller than the retail division. AWS generated $10.16 billion in profits during the second quarter, accounting for 55% of Amazon’s net income while representing just 18% of total revenue.
The cloud computing division holds a 30% share of the global market. This market position exceeds the combined share of competitors Microsoft and Alphabet.
Amazon’s retail operations generated $391.4 billion in sales during 2024. The company ranks second only to Walmart in retail sales volume.
Energy and Financial Sector Holdings
Occidental Petroleum stands out as Buffett’s preferred energy investment. Berkshire owns 26.9% of the integrated oil and gas company despite its smaller size compared to ExxonMobil and Chevron.
Buffett praised Occidental’s management after reading the company’s 2022 earnings call transcript. He stated the management approach matched exactly what he would do in their position.
Berkshire initially invested $10 billion in Occidental preferred stock to help finance the 2019 Anadarko Petroleum acquisition. The preferred stock pays an 8% dividend to Berkshire Hathaway.
Bank of America represents Buffett’s largest banking investment. Berkshire owns 605 million shares worth more than $30 billion, representing 10% of the entire investment portfolio.
The Charlotte-based bank serves 69 million consumer and small business clients. Bank of America operates 3,700 locations and 15,000 ATMs while serving 59 million digital customers.
Bank of America’s revenue rose 4% year-over-year to $26.5 billion in the second quarter. Net income increased to $7.1 billion from $6.9 billion the previous year.
New Investments in Smaller Companies
Buffett has established positions in Pool Corp and Domino’s Pizza over the past four quarters. Pool Corp represents a $1.1 billion investment for a 9.3% company stake, while Domino’s totals $1.2 billion for a 7.8% stake.
Pool Corp distributes pool equipment and chemicals to service providers. Management estimates 64% of sales come from maintenance rather than new construction, providing stable revenue streams.
The company operates 440 sales centers worldwide and benefits from scale advantages in sourcing. Pool Corp trades near its average price-to-earnings ratio from the past decade.
Domino’s operates more than 20,000 stores across 90 countries as the world’s largest pizza company. The franchise model keeps overhead low while generating steady cash flows from ingredient sales and fees.
Domino’s carryout comparable sales grew 5.8% last quarter, setting new records. The company’s fortressing strategy places multiple stores in single markets to reduce delivery times and increase carryout orders.
Trailing 12-month free cash flow at Domino’s climbed 20% over the past year through the second quarter. Management uses cash flow for dividend payments and share buybacks totaling $200 million in 2025.
