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Apple Inc. - Buffett's Largest Holding

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The Best Warren Buffett Stocks to Buy With $2,500 – A Practical Guide

If you’re a retail investor looking to capture a slice of Berkshire Hathaway’s legendary success without buying the entire conglomerate, The Motley Fool’s recent piece “The Best Warren Buffett Stocks to Buy With $2,500” is a useful starting point. The article distills Buffett’s most prominent holdings into a handful of actionable picks and explains why these names still fit his investment philosophy. Below is a detailed summary that captures the key take‑aways, complete with context and practical considerations for a $2,500 investment.


1. Apple Inc. (AAPL)

Why Buffett loves it
Apple is the largest holding in Berkshire’s portfolio—about 5% by value—making it the biggest single bet the investment giant has taken in years. Buffett praises Apple’s “strong brand,” loyal customer base, and “highly profitable” ecosystem of services that generate recurring revenue.

Current snapshot
- Share price (as of the article’s publication): roughly $165–$170 per share.
- Berkshire owns around 1.7 million shares, a valuation of roughly $260 million.
- Apple’s market‑cap sits near $3 trillion, giving Berkshire a 1.3% stake.

Investment case
The Motley Fool highlights Apple’s massive cash reserve (over $200 billion) and its disciplined capital‑return policy: a mix of dividends and share buybacks. Buffett’s own comments at the 2023 shareholder meeting praised Apple’s “ability to turn inventory into cash,” a trait he’s historically sought.

How to buy
With $2,500, you could acquire 15–16 shares (assuming a $165 price) or 14–15 if you include a brokerage commission. The article advises a “bottom‑up” approach: look for a price that reflects a margin of safety (i.e., below its intrinsic value) and hold for the long term.


2. Bank of America Corp. (BAC)

Why Buffett loves it
Berkshire’s stake in Bank of America represents the biggest banking bet in its portfolio, at roughly 2.2% of its equity. Buffett appreciates the bank’s robust capital structure, strong loan portfolio, and the way it benefits from a low‑interest‑rate environment.

Current snapshot
- Share price: around $40–$45.
- Berkshire owns approximately 9 million shares (~$375 million).
- Bank of America’s market‑cap: $350 billion.

Investment case
Buffett has cited the bank’s “solid management” and “stable dividend.” The Motley Fool underscores Bank of America’s resilient earnings amid a volatile macro environment, citing its focus on wealth management and a diversified revenue mix.

How to buy
At $42 per share, you could purchase roughly 60 shares for $2,520, factoring in a small commission. The article suggests that a single position in a stable bank can provide a steady dividend stream and serve as a defensive block in a portfolio.


3. Coca‑Cola Co. (KO)

Why Buffett loves it
Coca‑Cola has been a Berkshire staple since the 1990s, making it one of Buffett’s longest‑held positions. He’s drawn to the brand’s global dominance, predictable cash flow, and history of dividend growth.

Current snapshot
- Share price: around $60–$65.
- Berkshire holds about 4.5 million shares (~$290 million).
- Market‑cap: $250 billion.

Investment case
The Motley Fool points out Coca‑Cola’s consistent dividend yield (~3%) and a portfolio of over 500 brands. Buffett’s comment at a 2021 shareholder meeting praised Coca‑Cola’s “cash‑generating” nature and its ability to “grow profitably in a highly competitive industry.”

How to buy
With $2,500, you could buy 39–41 shares. The article notes that Coca‑Cola’s low volatility makes it a good “core” holding for risk‑averse investors.


4. American Express Co. (AXP)

Why Buffett loves it
American Express is one of Berkshire’s newer bets, with an investment of $3.5 billion announced in 2024. Buffett admires its high‑margin fee structure, strong brand loyalty, and the “revolving credit” business that provides steady revenue streams.

Current snapshot
- Share price: around $200–$210.
- Berkshire owns roughly 1.8 million shares (~$360 million).
- Market‑cap: $140 billion.

Investment case
The article highlights the company’s “dominant” position in the U.S. premium card market, its “low credit risk” due to high disposable income among cardholders, and its capacity to cross‑sell travel and lifestyle services.

How to buy
At $205 per share, a $2,500 allocation yields about 12–13 shares. The Motley Fool notes that AXP’s premium business model provides a “margin cushion” against economic downturns.


5. Procter & Gamble Co. (PG)

Why Buffett loves it
Berkshire’s stake in P&G sits at roughly 1.6% of its portfolio. Buffett values the company’s “diversified” product lines, global presence, and ability to maintain pricing power.

Current snapshot
- Share price: around $140–$145.
- Berkshire owns ~3.4 million shares (~$475 million).
- Market‑cap: $350 billion.

Investment case
The article cites P&G’s resilient earnings and consistent dividend growth, as well as its “strong brand equity.” Buffett’s comments have highlighted the company’s “robust supply chain” and “high capital efficiency.”

How to buy
At $142 per share, you can acquire about 18 shares for $2,556. P&G’s moderate volatility and dividend yield (~1.7%) make it a solid defensive pick.


How the Article Positions These Picks

  1. Alignment with Buffett’s Principles
    The Fool article repeatedly references Buffett’s “buying companies, not stocks” mantra. Each highlighted company shares one or more of his core criteria: durable competitive advantage, competent management, predictable cash flow, and a margin of safety. The article also points out that Buffett often looks for companies whose intrinsic value exceeds their market price—an opportunity for investors to emulate his long‑term approach.

  2. Practical Portfolio Construction
    With a modest $2,500, you can either build a small, diversified mini‑portfolio across 3–4 names or focus on one or two strong favorites. The article recommends a “core‑plus” strategy: use one or two “core” defensive names (e.g., Coca‑Cola, Bank of America) and add a “growth” name (e.g., Apple or American Express). It warns against over‑concentration in a single sector, as Buffett has often diversified his holdings across consumer, financial, and industrial sectors.

  3. Risk‑Management Tips
    The piece advises setting a “buy‑price” target and not chasing market hype. It emphasizes the importance of monitoring quarterly earnings and dividend announcements. Buffett’s habit of re‑investing dividends is echoed, with the suggestion that investors should consider dividend reinvestment plans (DRIPs) to compound returns over time.

  4. Tax and Transaction Considerations
    A small allocation like $2,500 can incur significant brokerage fees if trading in single‑share increments. The article recommends choosing a broker with no commission or minimal fees and considering fractional shares if available. It also touches on holding periods: Buffett’s investments are typically long‑term, so the article encourages holding for at least five years to realize the full benefit of compounding.


Final Take‑Away

The Motley Fool’s article essentially serves as a distilled “Buffett playbook” for the everyday investor. By focusing on a handful of Berkshire’s most significant holdings—Apple, Bank of America, Coca‑Cola, American Express, and Procter & Gamble—the article shows how a $2,500 budget can be used to build a portfolio that echoes Buffett’s value‑oriented, long‑term approach. Each pick is supported by data on ownership percentages, recent performance, and the strategic rationale that made it appealing to Berkshire’s investment team.

If you’re ready to emulate one of the most respected investors in history, start small, buy with conviction, and let the compounding power of these well‑established companies do the heavy lifting. Whether you’re chasing dividends, capital appreciation, or both, the article offers a practical, risk‑managed roadmap that can fit into virtually any long‑term investment plan.


Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/11/17/the-best-warren-buffett-stocks-to-buy-with-2500/ ]