Warren Buffett’s investment philosophy is rooted in simplicity: buy durable businesses at reasonable prices. His success with Berkshire Hathaway (BRK.B) demonstrates the power of patience and pragmatism. Yet markets demand vigilance. Here, we examine three holdings that align with Buffett’s principles-and one that defies them.
Buffett’s biggest
Berkshire still holds Apple (AAPL) despite partial sales, a testament to its entrenched position. The 750% gain since 2016, excluding dividends, speaks to its resilience. Critics argue the iPhone 17 offered mere tweaks, but the new iPhone Air-a slimmer, lighter device-hints at incremental progress. With one-third of active iPhones aged four years or older, replacement demand looms. At 29x earnings, the stock is neither cheap nor expensive. It is, however, a business with pricing power-a Buffett staple.
High growth at a reasonable price
Buffett insists: “Price is what you pay; value is what you get.” Amazon (AMZN) now trades at 35x earnings, down from triple digits-a recalibration markets often ignore. Its e-commerce dominance persists, yet AWS remains the jewel: 17% revenue growth, 33% margins, and unmatched scale. Critics dismiss Amazon’s valuation as optimistic, but its infrastructure moat deepens annually. For those seeking “wonderful at fair,” this fits.
Global growth
Mastercard (MA) processes $4 trillion annually, 64% outside the U.S. In a saturated domestic market, this global footprint matters. While Visa (V) leads in volume, Mastercard’s 10-year revenue growth outpaces its rival by 40%. Digital payments are spreading like electricity in the 20th century-a trend Mastercard is wired to capture. Buffett owns Visa too, but here, the smaller player delivers sharper edge.
A longtime laggard
Coca-Cola (KO) pays $816 million yearly to Berkshire-dividends from a 1990s bet. Yet its total return trails the S&P 500 by 12 percentage points this decade. The 3% yield dazzles retirees, but growth is an illusion: revenue has flatlined since 2014. Buffett’s cost basis is irrelevant to new buyers. This is a bond masquerading as equity-a relic in an era demanding innovation.
Apple, Amazon, and Mastercard represent calculated opportunities for the discerning investor. Coca-Cola serves as a cautionary tale: even Buffett’s darlings decay when momentum fades. Markets reward adaptability-never nostalgia. 📈
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2025-09-22 03:31