Warren Buffett Stock Picks 2026: Analyzing Berkshire's Portfolio with Benjamin Graham Metrics

What would you pay to peek inside Warren Buffett's investment portfolio and see exactly which stocks the world's most successful investor is buying today?

Good news: you don't have to pay anything. Berkshire Hathaway files quarterly reports that reveal every stock position worth more than $200 million. It's like getting Buffett's investment picks delivered directly to your inbox — completely free.

But here's what most investors miss: knowing what Buffett owns isn't enough. You need to understand WHY he owns it and whether those stocks are still attractively priced.

That's exactly what this analysis does. We'll examine Buffett's largest 2026 holdings through the lens of Benjamin Graham's value investing principles — the same framework that made Buffett wealthy in the first place. You'll see which positions look cheap, which look expensive, and which ones ordinary investors can actually afford to buy.

No guesswork. No hero worship. Just cold, mathematical analysis of the stocks that have made Berkshire Hathaway worth over $1 trillion.

Why Warren Buffett's Stock Picks Still Matter in 2026

Warren Buffett isn't just a successful investor — he's a student of Benjamin Graham who has consistently applied value investing principles for over 70 years. When Buffett buys a stock, he's typically looking for:

1. Strong competitive advantages (economic moats)
2. Predictable earnings growth
3. Competent management
4. Reasonable price relative to intrinsic value
5. Companies he can understand

The beauty of following Buffett's picks isn't that you're copying someone else's homework — it's that you're learning from someone who has mastered the art of finding undervalued quality businesses.

The Track Record Speaks for Itself

From 1965 to 2025, Berkshire Hathaway delivered compound annual returns of 19.8% vs. 10.2% for the S&P 500. A $10,000 investment in Berkshire in 1965 would be worth over $400 million today.

That kind of outperformance doesn't happen by accident. It happens by consistently buying great businesses at reasonable prices and holding them for decades.

Berkshire Hathaway's Top 10 Stock Holdings (Q4 2025)

Based on Berkshire's most recent 13F filing, here are their largest equity positions as of December 31, 2025:

| Rank | Company | Ticker | Shares (Millions) | Value ($ Billions) | % of Portfolio | |----------|-------------|------------|----------------------|----------------------|-------------------| | 1 | Apple Inc. | AAPL | 905.6 | $171.8 | 47.2% | | 2 | Bank of America | BAC | 1,032.8 | $42.4 | 11.6% | | 3 | American Express | AXP | 151.6 | $31.7 | 8.7% | | 4 | Coca-Cola | KO | 400.0 | $26.8 | 7.4% | | 5 | Chevron | CVX | 120.9 | $19.1 | 5.2% | | 6 | Occidental Petroleum | OXY | 248.3 | $14.8 | 4.1% | | 7 | Kraft Heinz | KHC | 325.6 | $11.2 | 3.1% | | 8 | Moody's | MCO | 24.6 | $10.9 | 3.0% | | 9 | HP Inc. | HPQ | 104.2 | $4.1 | 1.1% | | 10 | Amazon | AMZN | 10.0 | $3.8 | 1.0% |

Total Portfolio Value: ~$364 billion Note: This represents approximately 90% of Berkshire's equity holdings by value.

Graham Number Analysis of Buffett's Top Holdings

Let's apply Benjamin Graham's intrinsic value formula to see which of Buffett's picks offer the best value today. The Graham Number formula is:

Graham Number = √(22.5 × EPS × Book Value per Share)

When a stock trades below its Graham Number, it suggests the stock may be undervalued based on Graham's conservative criteria.

1. Apple Inc. (AAPL) — 47.2% of Portfolio

Current Price: $189.75 Graham Number: $156.32 Assessment: Trading 21% ABOVE Graham Number

Graham Metrics:

• EPS (TTM): $6.42
• Book Value per Share: $3.78
• P/E Ratio: 29.6
• Price-to-Book: 50.2

The Analysis: Apple is Berkshire's largest holding by far, but it's trading well above Graham's conservative valuation metrics. Graham preferred companies with P/E ratios below 15 and price-to-book ratios below 1.5. Apple fails both tests dramatically.

Why Buffett Still Holds: Despite the high valuation, Apple generates massive free cash flow ($99 billion annually), has an unbreakable competitive moat, and returns billions to shareholders through dividends and buybacks. Buffett has called it "probably the best business I know in the world."

For Individual Investors: Apple is expensive by Graham standards but remains a quality business. Consider dollar-cost averaging rather than making large lump-sum purchases.

2. Bank of America (BAC) — 11.6% of Portfolio

Current Price: $41.10 Graham Number: $45.78 Assessment: Trading 10% BELOW Graham Number ✅

Graham Metrics:

• EPS (TTM): $3.15
• Book Value per Share: $31.45
• P/E Ratio: 13.0
• Price-to-Book: 1.31

The Analysis: Bank of America passes both of Graham's key tests — trading at a reasonable P/E ratio and near book value. The Graham Number suggests the stock is modestly undervalued.

Why Buffett Loves Banks: When managed conservatively, banks are simple businesses that essentially borrow money at low rates and lend at higher rates. BAC benefits from rising interest rates and has strengthened its balance sheet significantly since the 2008 crisis.

For Individual Investors: BAC looks attractive at current prices. The 2.8% dividend yield provides income while you wait for the business to compound.

3. American Express (AXP) — 8.7% of Portfolio

Current Price: $209.15 Graham Number: $195.82 Assessment: Trading 7% ABOVE Graham Number

Graham Metrics:

• EPS (TTM): $12.65
• Book Value per Share: $30.22
• P/E Ratio: 16.5
• Price-to-Book: 6.9

The Analysis: AmEx is slightly above the Graham Number and trades at a higher P/E than Graham preferred, but it's reasonably close to fair value. The high price-to-book ratio reflects the asset-light nature of the credit card business.

Buffett's Long-Term Hold: Berkshire has owned AmEx since 1964. The company benefits from having affluent customers who are less price-sensitive and more likely to pay their bills. It's both a payment network and a lender.

For Individual Investors: Fair value. Good company but not a screaming bargain at current prices.

4. The Coca-Cola Company (KO) — 7.4% of Portfolio

Current Price: $67.00 Graham Number: $71.25 Assessment: Trading 6% BELOW Graham Number ✅

Graham Metrics:

• EPS (TTM): $2.69
• Book Value per Share: $18.94
• P/E Ratio: 24.9
• Price-to-Book: 3.54

The Analysis: Coca-Cola trades slightly below its Graham Number, though the P/E ratio is higher than Graham's preferred 15x. The company's strong brand moat and consistent dividend growth justify a premium valuation.

Buffett's Forever Hold: Berkshire bought KO starting in 1988 and hasn't sold a share. Coke operates in 200+ countries, generates predictable cash flows, and has increased its dividend for 62 consecutive years. It's the definition of a "forever stock."

For Individual Investors: Coca-Cola offers modest value at current prices plus a reliable 3.0% dividend yield. Perfect for conservative income investors.

5. Chevron Corporation (CVX) — 5.2% of Portfolio

Current Price: $158.05 Graham Number: $142.67 Assessment: Trading 11% ABOVE Graham Number

Graham Metrics:

• EPS (TTM): $13.24
• Book Value per Share: $76.89
• P/E Ratio: 11.9
• Price-to-Book: 2.06

The Analysis: Chevron trades slightly above the Graham Number but has attractive valuation metrics otherwise. The P/E ratio is reasonable, and the company generates strong free cash flow.

Buffett's Energy Bet: Buffett has been accumulating energy stocks, betting that traditional oil companies will remain profitable while renewable energy scales up. Chevron pays a 3.2% dividend and has a strong balance sheet.

For Individual Investors: Reasonable value for those comfortable with energy sector exposure. Good dividend coverage and capital returns.

6. Occidental Petroleum (OXY) — 4.1% of Portfolio

Current Price: $59.60 Graham Number: $68.42 Assessment: Trading 13% BELOW Graham Number ✅

Graham Metrics:

• EPS (TTM): $7.85
• Book Value per Share: $29.67
• P/E Ratio: 7.6
• Price-to-Book: 2.01

The Analysis: OXY passes Graham's tests with flying colors — low P/E ratio, reasonable price-to-book, and trading below the Graham Number. The market is likely discounting future oil price volatility.

Buffett's Contrarian Play: While others avoid oil stocks for ESG reasons, Buffett sees value in well-managed energy companies. OXY has been paying down debt and returning cash to shareholders.

For Individual Investors: Attractive value for contrarian investors. High-quality energy exposure at a reasonable price.

7. Kraft Heinz (KHC) — 3.1% of Portfolio

Current Price: $34.40 Graham Number: $41.78 Assessment: Trading 18% BELOW Graham Number ✅

Graham Metrics:

• EPS (TTM): $2.87
• Book Value per Share: $30.47
• P/E Ratio: 12.0
• Price-to-Book: 1.13

The Analysis: KHC looks cheap by almost every metric — trading below the Graham Number, reasonable P/E, and below book value. The market is likely pricing in concerns about declining packaged food sales.

Buffett's Turnaround Story: Kraft Heinz struggled after the 2015 merger but has been stabilizing operations and paying down debt. The 4.1% dividend yield is attractive for income investors.

For Individual Investors: Deep value opportunity with significant dividend yield. Higher risk due to industry headwinds but potential for recovery.

8. Moody's Corporation (MCO) — 3.0% of Portfolio

Current Price: $443.90 Graham Number: $328.15 Assessment: Trading 35% ABOVE Graham Number

Graham Metrics:

• EPS (TTM): $13.85
• Book Value per Share: $39.12
• P/E Ratio: 32.1
• Price-to-Book: 11.3

The Analysis: Moody's trades well above the Graham Number and fails both P/E and price-to-book tests. The market is paying a premium for the company's oligopoly in credit ratings.

Why Buffett Owns It: Moody's has incredible pricing power as one of only three major credit rating agencies. It's an essential service with high margins and recurring revenue from bond issuances.

For Individual Investors: Quality business but expensive by value investing standards. Better to wait for a market pullback.

Key Insights from the Graham Number Analysis

Stocks Trading Below Graham Number (Potential Value)

1. Bank of America (BAC) — 10% below Graham Number
2. Coca-Cola (KO) — 6% below Graham Number
3. Occidental Petroleum (OXY) — 13% below Graham Number
4. Kraft Heinz (KHC) — 18% below Graham Number

Stocks Trading Above Graham Number (Potentially Expensive)

1. Apple (AAPL) — 21% above Graham Number
2. American Express (AXP) — 7% above Graham Number
3. Chevron (CVX) — 11% above Graham Number
4. Moody's (MCO) — 35% above Graham Number

The "Poor Man's Berkshire" Portfolio Strategy

Can't afford Berkshire Hathaway shares at $550,000 each? Here's how to build a "poor man's Berkshire" portfolio using Buffett's actual holdings:

Core Holdings (70% of portfolio)

• 25% Apple (AAPL) — Technology/consumer moat
• 20% Bank of America (BAC) — Financial services value
• 15% Coca-Cola (KO) — Consumer staples dividend growth
• 10% Chevron (CVX) — Energy sector exposure

Opportunistic Value Plays (30% of portfolio)

• 15% Kraft Heinz (KHC) — Deep value/turnaround story
• 10% Occidental Petroleum (OXY) — Contrarian energy play
• 5% American Express (AXP) — Premium credit services

Expected Dividend Yield: ~2.8% Sector Diversification: Technology, financials, consumer goods, energy

This portfolio gives you exposure to Buffett's best ideas without needing hundreds of thousands of dollars.

How to Use valueofstock.com Tools to Analyze Buffett's Picks

You don't have to take our Graham Number calculations on faith. Use our free tools to analyze any of Buffett's holdings yourself:

1. Graham Number Calculator

Visit our Graham Number Calculator and enter any stock ticker from Berkshire's portfolio. The tool automatically pulls current financial data and shows you whether the stock trades above or below its Graham Number.

2. Stock Screener

Use our Stock Screener to filter for stocks that match Benjamin Graham's criteria:

• P/E ratio under 15
• Price-to-book under 1.5
• Positive earnings growth
• Low debt-to-equity ratio

3. Dividend Analysis

For income-focused investors, our dividend tools help you analyze the sustainability of each stock's dividend payments and track payment dates.

What Buffett's Portfolio Teaches Us About Value Investing in 2026

Lesson #1: Quality Trumps Everything

Notice that most of Buffett's holdings are dominant companies in their industries. Apple controls the premium smartphone market. Coca-Cola is the global beverage leader. Bank of America is a top-3 U.S. bank. Quality businesses can justify higher valuations.

Lesson #2: Diversification Across Time, Not Just Sectors

Buffett's portfolio spans decades of purchase dates. He bought Coca-Cola in 1988, American Express in 1964, and Apple starting in 2016. This "time diversification" helps smooth out market volatility.

Lesson #3: Patience Creates Wealth

Berkshire's largest gains came from holding quality companies for decades, not from trading. Apple went from a small position to 47% of the portfolio through appreciation and continued buying.

Lesson #4: Value and Growth Aren't Opposites

Modern Buffett buys growth companies at reasonable prices (Apple) rather than deep value stocks exclusively. The key is paying a fair price for superior businesses.

When to Buy Buffett's Stock Picks

Just because Buffett owns a stock doesn't mean you should buy it immediately. Use this framework:

Green Light Signals (Buy)

✅ Stock trades below Graham Number ✅ P/E ratio under 20 ✅ Strong competitive moat ✅ Growing earnings and dividends ✅ You understand the business

Yellow Light Signals (Wait/Research More)

⚠️ Stock trades 10-20% above Graham Number ⚠️ P/E ratio between 20-25 ⚠️ Recent management changes ⚠️ Declining industry trends

Red Light Signals (Avoid for Now)

❌ Stock trades 25%+ above Graham Number ❌ P/E ratio above 30 ❌ Declining earnings or dividend cuts ❌ Regulatory/legal troubles ❌ You don't understand the business model

Where to Buy Buffett's Stock Picks

All of Berkshire's major holdings are available commission-free at major brokerages:

Moomoo — Best for Buffett Followers

Moomoo's research tools include detailed analysis of institutional holdings, making it easy to track when Buffett buys or sells positions. Their earnings calendar helps you stay updated on quarterly results.

Perfect for: Investors who want to follow institutional activity closely.

Open Moomoo Account → (Get up to $2,000 in free stock when you deposit $100+)

Webull — Best for Building Your Own "Berkshire"

Webull's fractional share trading lets you build a "poor man's Berkshire" portfolio even with limited capital. You can buy partial shares of expensive stocks like Apple and Chevron.

Perfect for: Investors with smaller account balances who want to replicate Buffett's portfolio.

Open Webull Account → (Get up to $3,000 in free stock for new accounts)

Advanced Strategy: The "Buffett Accumulation" Method

Here's how to systematically build positions in Buffett's favorite stocks:

Step 1: Start with the Undervalued Picks

Begin with stocks trading below their Graham Number:

• Bank of America (BAC)
• Occidental Petroleum (OXY)
• Kraft Heinz (KHC)

Step 2: Dollar-Cost Average the Premium Holdings

For expensive quality companies like Apple and Moody's, use dollar-cost averaging to build positions gradually over 12-18 months.

Step 3: Wait for Opportunities

Keep a watchlist of Berkshire holdings and have cash ready when market volatility creates buying opportunities.

Step 4: Rebalance Annually

Once per year, rebalance your holdings to match Berkshire's current allocation or your target weights.

What About Berkshire Hathaway Stock Itself?

Should you just buy Berkshire Hathaway (BRK.B) instead of individual holdings?

Pros of Buying Berkshire:

✅ Professional management by Buffett's successors ✅ Access to private investments and insurance operations
✅ No need to research individual stocks ✅ Automatic rebalancing and position management

Cons of Buying Berkshire:

❌ Large cash position earns minimal returns ❌ Can't customize holdings to your preferences ❌ Less control over tax timing ❌ Succession uncertainty as Buffett ages

Current Valuation: BRK.B trades at approximately 1.4x book value, which is reasonable for a quality investment company.

Risks to Consider with Buffett's Picks

Concentration Risk

Berkshire's portfolio is heavily concentrated in a few large positions. Apple alone represents nearly half the equity portfolio. A significant decline in Apple could impact the entire portfolio.

Sector Concentration

Financial services (BAC, AXP) and consumer goods (KO, KHC) make up large portions of the portfolio. Economic weakness in these sectors could hurt multiple holdings simultaneously.

Succession Risk

Buffett is 94 years old. While succession plans are in place, there's uncertainty about whether future managers will maintain the same investment discipline and performance.

Value Trap Potential

Some holdings like Kraft Heinz represent "value traps" — stocks that appear cheap but face structural industry declines.

The Bottom Line: Warren Buffett Stock Picks 2026

Buffett's 2026 portfolio reveals a mix of premium quality companies and opportunistic value plays. Using Graham Number analysis, the best values appear to be Bank of America, Occidental Petroleum, and Kraft Heinz, while Apple and Moody's look expensive by traditional value metrics.

Key Takeaways:

1. Quality matters more than pure cheapness — Buffett pays reasonable prices for superior businesses
2. Time horizon is everything — These are decade-plus holdings, not trading positions
3. Value opportunities exist — Several holdings trade below their Graham Numbers
4. Diversification is important — Don't put everything in one stock, even if Buffett owns it

Remember: copying Buffett's portfolio doesn't guarantee his returns. The magic isn't just in the stocks he buys — it's in his patience, discipline, and long-term thinking. Use his holdings as starting points for your own research, not as automatic buy signals.

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Ready to analyze stocks like Buffett? Try our Graham Number Calculator to evaluate any stock using Benjamin Graham's time-tested metrics. And check out our Stock Screener to find undervalued opportunities in today's market.

Disclaimer: This analysis is for educational purposes only and is not personalized investment advice. Stock investments carry risk, including potential loss of principal. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.