With Warren Buffett Done as CEO, Just 3 Stocks Make Up Almost 50% of Berkshire Hathaway

"For 60 years, the " Oracle of Omaha" had a rock-star-like presence in the investing world, and his annual Berkshire Hathaway Inc. ( NYSE: BRK-B) shareholders meeting drew thousands of loyal investors. They were stunned at last year's meeting when Buffett announced that he would step down as CEO of the investment giant at year's end. While he remains board chair and vows to come to the office every day, he will also continue to have a voice in the day-to-day operations."

"Long-time investors and Buffett mavens know that his favorite holding for an S&P 500 stock is forever, so it's not surprising to report that for all the success and stature Berkshire Hathaway has in the investment world, only three top companies make up almost 50% of the fund's total holdings. While much more concentrated than most portfolio managers would ever consider, the strategy has worked for Berkshire Hathaway investors for years and will likely continue to do so."

Warren Buffett stepped down as CEO of Berkshire Hathaway at year's end while remaining board chair, vowing to come to the office daily and keep a voice in operations. Greg Abel, the pre-announced successor and long-time lieutenant, has assumed the CEO role and will likely direct or influence most new investments. Berkshire's equity holdings are highly concentrated, with three companies comprising almost 50% of the fund's total holdings. Berkshire earns about $4.37 billion annually in dividend income from its stock portfolio. Uncertainty remains whether Abel will maintain the concentration strategy or change the dividend policy. Berkshire's 20-year average annual return is 12.1% versus the S&P 500's 11.5%.

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