59% of Berkshire Hathaway's Portfolio Sits in 5 Dow Stocks. This Is My Top Pick to Buy Now.

Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) and the Dow Jones Industrial Average have a lot in common. Berkshire is one of the most well-respected conglomerates in the world, while the Dow is one of the most well-respected market indexes in the world.

Both have a deep-rooted history and own some of the largest, most prominent companies in the U.S. In fact, there's actually quite a bit of overlap, as former Berkshire CEO Warren Buffett and current CEO Greg Abel have steered Berkshire's capital into several Dow companies.

Nearly 59% of Berkshire's stock portfolio sits in five Dow stocks. This is my top pick right now.

Image source: The Motley Fool.

1. Apple -- 21% of portfolio

The consumer tech giant Apple (NASDAQ: AAPL) is a Buffett pick through and through. Buffett allegedly began buying Apple stock after seeing how distraught his friend became when he lost his iPhone, Apple's blockbuster product.

Buffett began buying Apple in 2016 and at one point built the position to roughly 40% of Berkshire's massive portfolio. While Apple possesses many qualities of a typical Buffett stock, including an incredible brand and tremendously strong moat, one thing that must have stood out to Buffett is the amount of share repurchases the company conducts.

Between the beginning of 2016, when Berkshire first purchased Apple, and 2025, Apple repurchased over $700 billion worth of stock.

2. American Express -- 15%

Berkshire's second-largest position, American Express (NYSE: AXP), is one of Buffett's longest holdings.

Berkshire acquired the bulk of its Amex position in the early 1990s and has let it appreciate. It's now collecting hundreds of millions in dividends annually. Amex has also established an incredible brand, and its credit cards have become a symbol of status.

Plus, the company has an excellent business model. The credit card business, which is often perceived as a higher-risk category by investors, serves an affluent clientele that is typically more resilient during economic downturns. Meanwhile, the company's closed-loop payments network captures fees on every Amex transaction, creating a strong stream of annual recurring revenue.

3. Coca-Cola -- 9.3%

Berkshire began purchasing the iconic beverage company Coca-Cola (NYSE: KO) in the late 1980s. Similar to Amex, the position now yields hundreds of millions in annual dividends.

In fact, Coca-Cola is a Dividend King, meaning it has paid and increased its annual dividend for at least 50 years. Coca-Cola is on year 64 and counting. Coca-Cola is viewed as a high-quality consumer staples stock, a category that tends to perform better during market turbulence and economic struggles.

The company has greatly diversified its product line beyond soda and now has many brands in different beverage categories.

4. Alphabet -- 8.6%

Buffett initiated Berkshire's Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) position only last year, but Abel has greatly expanded it. Berkshire purchased over $10 billion in Alphabet Class A and Class C shares in the first quarter of the year, and then followed that up by purchasing another $10 billion in a private placement.

It's an interesting move because Alphabet is a clear bet on artificial intelligence, and the company is expected to spend as much as $190 billion in capital expenditures on AI-related infrastructure.

Berkshire had seemingly been ignoring these bets in recent years and hoarding cash, but Buffett recently said that Alphabet has a tremendous track record for generating high returns on capital. The company also operates many other strong tech businesses that can thrive even if AI is not as successful as expected.

5. Chevron -- 4.5%

Since the pandemic, Buffett and the Berkshire team have loaded up on energy stocks and assets, and Chevron (NYSE: CVX) now accounts for 4.5% of Berkshire's equity portfolio.

Buffett and his team may have realized that oil and gas dependence isn't going anywhere as power demand surges. They may also see U.S. oil as a good hedge against geopolitical risks, which turned out to be a prudent assumption, given what has happened to oil prices this year as a result of the Iran war.

My top pick

Of these five stocks, I like Apple the best right now. The stock has risen nearly 21% this year, beating the broader market and many of its peers in the "Magnificent Seven."

While the hyperscalers poured hundreds of billions into AI capex, Apple largely stayed on the sidelines, choosing to position its AI strategy differently. At times, it certainly seemed like Apple's AI strategy lagged its peers', but the company is now being rewarded for its patience.

What's more, Apple can still benefit from AI by playing a key role in the AI ecosystem. It will be able to bring AI to consumers through many of its hardware products. People will be able to access large language models and other AI tools through Apple products, likely generating significant referral revenue for Apple.

More AI use on Apple products could also increase iCloud usage, leading to better monetization of Apple's cloud storage.

American Express is an advertising partner of Motley Fool Money. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, American Express, Apple, Berkshire Hathaway, and Chevron. The Motley Fool has a disclosure policy.