It doesn't take a Nostradamus to predict what Warren Buffett will have as his top position in Berkshire Hathaway's portfolio next year. I think it will almost certainly be cash, including cash equivalents and short-term investments in Treasury bills.
Berkshire's cash stockpile totaled nearly $277 billion at the end of the second quarter of 2024. Buffett would have a hard time spending enough of that money over the next 16 months for cash not to be Berkshire's top position at the end of next year.
However, forecasting Buffett's top stock holdings isn't quite as easy. I have my ideas, though. I predict these will be the top-five stocks in Berkshire's portfolio in 2025.
1. Apple
Apple (NASDAQ: AAPL) has reigned as Berkshire's biggest holding for years. It's still No. 1 despite Buffett selling roughly half of his company's stake in Apple in recent months. I expect the stock will remain at the top in 2025.
Even though Buffett has sold a significant chunk of Berkshire's position in Apple, there's no reason to believe he doesn't still like the stock and the company. At Berkshire Hathaway's annual shareholder meeting in May, he praised Apple's business.
2. American Express
American Express (NYSE: AXP) currently ranks as Berkshire's third-largest holding. It makes up 11.8% of the conglomerate's portfolio. I don't expect Buffett to buy additional shares of Amex, but I do think it will move up one spot.
There are two reasons behind my prediction about American Express. One is that I believe the stock will perform well over the next year or so (assuming there isn't a recession). What's the other reason? I'll discuss it next.
3. Bank of America
Bank of America (NYSE: BAC) trails behind Apple as Buffett's second-biggest stock holding right now. But it isn't far ahead of American Express, with Berkshire's stake in BofA worth around $36 billion and its stake in Amex worth $35.4 billion.
I think American Express may outperform Bank of America over the near term. More importantly, though, Buffett sold over $3.8 billion of the stock in Q2. I won't be surprised if his selling isn't finished.
4. The Coca-Cola Company
The Coca-Cola Company (NYSE: KO) is Berkshire's fourth-largest stock holding now. I don't think that will change in 2025.
Coke's share price could appreciate over the next 16 months. However, I wouldn't count on it soaring enough to leap into third place. And while Buffett loves the company and its stock, he hasn't bought any additional shares of Coke in years and likely won't do so anytime soon.