5 Biggest Investments by Warren Buffett That Changed the World of Investing
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From Coca-Cola to Apple, these are the 5 companies that made Warren Buffett a legendary investor. Returns reaching billions of dollars.
Warren Buffett, known as the "Oracle of Omaha", is a renowned investor from the United States. He bought his first stock at age 11 and has since become one of the wealthiest individuals in the world, thanks to his disciplined long-term investment strategy.
Through his holding company, Berkshire Hathaway, Buffett has achieved extraordinary investment returns exceeding 5,502,284% since 1965. This remarkable track record solidifies Warren Buffett''s status as an icon in the world of finance.
Buffett does not chase trending stocks or new technology stocks. Instead, he focuses on:
Every year, he spends hours reading annual reports, financial statements, and SEC filings. Warren Buffett''s investments prioritise a deep understanding of the companies he invests in.
Annual dividends: US$816 million (~RM3.8 billion)
In 1988, after the stock market crash, Buffett purchased Coca-Cola shares worth US$1.3 billion. Although Coke was struggling with its failed "New Coke" product at the time, he believed in the strength of the brand. Today, Coca-Cola remains the backbone of Berkshire Hathaway''s largest dividend income.
Key success factor: Global brand, pricing power, and a product loved by many.
Current value: Exceeding US$150 billion
Although previously sceptical of technology stocks, Buffett began buying Apple in 2016 with an investment of US$11.1 billion. Today, Apple is the single largest investment in Berkshire Hathaway''s portfolio.
Why Apple?
Because Apple is not just technology, but a lifestyle ecosystem with products, services, and an aggressive share buyback programme, making it a major attraction for Warren Buffett.
Held since: 1964
The "soybean oil fraud" scandal caused American Express shares to drop nearly 50%. Many fled – Buffett stepped in. He invested approximately US$20 million, and added another US$300 million in 1991. Today, those shares are worth over US$50 billion.
Key lesson: When the market panics, wise investors see opportunity. This is part of the wisdom that makes Warren Buffett a legend.
Returns: Estimated >US$40 billion
Buffett first invested in insurance company GEICO in 1951. Although GEICO nearly went bankrupt in the 1970s, Berkshire became its saviour and eventually acquired it fully in 1996.
GEICO became a cash machine through float – insurance premium money that can be invested before policyholders make claims.
Crisis investment: Profits after 2008
Buffett purchased preferred shares in Bank of America in 2011, when the bank was under pressure from the financial crisis. He not only received dividends but also capital gains when the share price surged. Some holdings were sold in 2024, but BAC remains in the top 3 of his portfolio and continues to be a key part of Warren Buffett''s investment strategy.
Key to success: Investing when others are afraid.
"Price is what you pay. Value is what you get."
Buffett always looks for hidden value, not just cheap prices. He focuses on real businesses, not speculation. And most importantly: patience.
Warren Buffett will retire at the end of 2025, but his investments will continue to serve as the ultimate guide in the world of finance.
If you want to succeed in stock investing like him, learn these fundamental principles that guide Warren Buffett:
Hold with patience
Understand the business
Analyse value before buying
Buy when others are afraid
Want to become a successful investor like Warren Buffett? Before that, you need to open a CDS account first.
Successful investing starts with solid knowledge. Continue your learning journey.
Investment Basics:
Want to learn from scratch? Download our free ebook for a complete guide.
Open a CDS Account:
Ready to start? Open a CDS account and put what you''ve learnt into practice.
Read Also:
Avoid the top 5 mistakes beginners make in the stock market.
Apple (AAPL) is currently Warren Buffett''s most profitable investment, with a current value exceeding US$150 billion from an initial investment of US$11.1 billion. However, in terms of percentage returns over time, Coca-Cola and American Express have also delivered extraordinary gains.
Warren Buffett follows a value investing strategy. He looks for undervalued companies with strong fundamentals, consistent cash flow, low debt, and powerful brands. He then holds these investments for the long term, often decades.
Yes. Malaysian investors can apply Buffett''s value investing principles to Bursa Malaysia stocks. The first step is to open a CDS account and start learning fundamental analysis. You can also download our free ebook to build a strong foundation.