In 2024, Warren Buffett's Berkshire Hathaway made headlines by selling a staggering $133 billion worth of stocks. This massive reduction in equity holdings left many investors speculating about the Oracle of Omaha’s strategy. However, while Buffett unloaded a significant portion of his portfolio, two stocks stood firm as long-term favorites: Apple (AAPL) and Coca-Cola (KO).

These two companies epitomize Buffett's investing principles: high-quality businesses with durable competitive advantages, strong brands, and consistent cash flow. Let’s take a closer look at why Buffett continues to bet on these two giants.

1.Coca-Cola (KO)

Buffett’s love affair with Coca-Cola spans decades, and this classic consumer staple remains a Berkshire Hathaway favorite.

Why Buffett Loves Coca-Cola

Iconic Brand: Coca-Cola is one of the most recognized brands globally, with a presence in over 200 countries. Its diversified product portfolio includes soft drinks, water, sports drinks, and teas.

Pricing Power: In an inflationary environment, Coca-Cola's strong brand allows it to raise prices without significantly impacting demand.

Dividend Reliability: Coca-Cola is a dividend aristocrat, boasting over 60 years of consecutive dividend increases, making it a reliable income generator for Berkshire.

2024 Highlights:

Resilience During Recession: Despite macroeconomic challenges, Coca-Cola delivered steady revenue growth, driven by price increases and growth in emerging markets.

Expansion into Healthier Options: Coca-Cola continues to innovate, expanding its portfolio into healthier beverage options and premium sparkling waters to cater to changing consumer tastes.

2. American Express

Coca-Cola remains a classic example of a Buffett-style investment: a simple, predictable business with a wide moat and consistent cash flow.

2. Apple (AAPL)

Buffett’s faith in Apple remains unwavering, and it’s easy to see why.

Why Buffett Loves Apple:

Brand Power: Apple is one of the most valuable and recognizable brands in the world, commanding immense customer loyalty through its ecosystem of products and services.

Recurring Revenue: The company has successfully transitioned from a hardware-heavy model to one focused on services, including subscriptions like iCloud, Apple Music, and the App Store.

Strong Cash Flow: Apple's ability to generate consistent free cash flow makes it a reliable investment in any market condition.

Buffett’s Biggest Bet: As of 2024, Apple represents nearly 50% of Berkshire Hathaway’s equity portfolio, highlighting its importance in Buffett’s strategy.

2024 Highlights:

Strong Earnings Growth: Apple's revenue from services reached an all-time high, offsetting sluggish hardware sales.

AI and Wearable Tech: The company’s focus on integrating AI into its ecosystem and expanding its wearable tech lineup, like the Apple Watch Ultra, positions it for future growth

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