Warren Buffett, the legendary investor known as the Oracle of Omaha, has announced that he will be stepping down as CEO of Berkshire Hathaway at the end of the year. This news came as a shock to many investors who have followed Buffett’s career for decades. While he will still be involved in the company as the board chair, his successor Greg Abel will take over as CEO in 2025.
Despite underperforming the S&P 500 in 2025, Berkshire Hathaway has managed to reduce its underperformance from 12.2% to 4.3%. The stock price dipped after Buffett’s retirement announcement, but with a massive cash pile of $381 billion, the company is poised to take advantage of any market dislocations, similar to the Global Financial Crisis.
Buffett’s investment strategy has always been focused on long-term holdings, with five top companies making up over 70% of Berkshire Hathaway’s portfolio. These companies, which all pay dividends, are likely to remain in the portfolio for years to come. American Express, Apple Inc., Bank of America, Chevron, and Coca-Cola are some of the key holdings that are expected to continue delivering strong returns.
American Express, a global payments company, has performed well in 2025 and offers a dividend yield of 0.88%. Apple Inc., the technology giant, continues to dominate the market with its innovative products and services, including the iPhone, Mac, iPad, and Apple Watch. Bank of America, a financial giant, reported impressive third-quarter results, with strong growth in revenue and earnings.
Chevron, an integrated energy company, is a safe bet for investors looking to enter the energy sector, with a substantial 4.42% dividend yield. Coca-Cola, the world’s largest beverage company, offers a wide range of products and brands, including Diet Coke, Sprite, and Dasani water.
As Buffett prepares to step down from his role as CEO, investors are eager to see how Berkshire Hathaway will continue to perform under Abel’s leadership. With a focus on long-term investments and solid dividend-paying stocks, the company is poised to weather any market challenges and continue to deliver strong returns for shareholders.
