Warren Buffett will undoubtedly be remembered by history as one of the greatest investors. Through Berkshire Hathaway, which he leads, his exceptional investment acumen over decades has significantly increased the wealth of many long-term shareholders. Buffett’s investment moves have always been a focal point of market attention. As he steps down as CEO at the end of the year, Berkshire’s investment portfolio has become an even more closely watched subject for investors. Among its many holdings, Coca-Cola (KO) and Amazon (AMZN) stand out as particularly noteworthy high-quality choices for long-term investment.
Coca-Cola is one of the longest-held stocks in Berkshire’s portfolio. Since first establishing a position in the late 1980s, Buffett has consistently emphasized the strength of its brand advantage, which forms the company’s economic moat, enabling it to maintain customer loyalty even amid economic cycles. In his 2022 letter to shareholders, Buffett specifically highlighted the reliability of Coca-Cola’s dividends, noting that he and the late Charlie Munger merely “collect the quarterly dividend checks on time.” Berkshire invested approximately $1.3 billion in Coca-Cola shares, receiving $75 million in dividends in 1994. By 2022, the annual dividend income had grown to $704 million. As a “Dividend King” that has raised its dividends for 63 consecutive years, Coca-Cola currently offers a dividend yield of nearly 3%, making it an ideal source of passive income.
Another company worth holding is Amazon. In recent years, Berkshire has also shown interest in the technology sector, and Amazon is undoubtedly one of its most representative investments. As one of the top five companies globally by market capitalization, Amazon boasts two core businesses: its e-commerce platform and Amazon Web Services (AWS). Its e-commerce operations not only serve as a model for logistics systems but also generate diversified revenue streams through direct sales, third-party seller services, and the Prime membership program. Despite challenges posed by tariff policies, the company has demonstrated strong cost-pass-through capabilities and operational resilience, with its latest quarterly reports showing double-digit growth in online store sales, subscription services, and third-party seller revenues. AWS continues to lead the cloud infrastructure market, holding approximately 30% market share and providing enterprises with efficient and flexible IT solutions. More importantly, AWS is actively launching artificial intelligence tools and large language models to support businesses in developing their own AI applications, indicating vast potential for future growth. Amazon’s current price-to-earnings ratio is around 35 times, below its five-year average. Given its leading position in both technology and consumer sectors, as well as its strategic focus on artificial intelligence, its current valuation presents long-term investment appeal.
