Warren Buffett just named the Berkshire holdings he likes more than Alphabet

Warren Buffett rarely downgrades a position he personally built, except when there is a good reason for him to do so. In an interview with CNBC's Becky Quick on July 15, the Berkshire Hathaway chairman revealed he initiated the conglomerate's $31 billion-plus Alphabet stake, then ranked it below several longtime favorites.

His concern was the enormous capital the AI race demands. If you have been looking to check up on your financial health, his reasoning offers a useful lens for evaluating what belongs in your own portfolio.

What Buffett said about Alphabet's place in the portfolio

Berkshire Hathaway (NYSE:BRK.B) first disclosed an Alphabet (NASDAQ:GOOGL) stake in the third quarter of 2025 and has since expanded it through additional purchases and a $10 billion private placement, according to CNBC. Yet Buffett said he does not favor it as much as "at least four or five other businesses that we own."

He pointed to the capital intensity of the AI competition, noting that tech giants "are all laying out hundreds of billions" to stay competitive, per the interview transcript.

American Express (NYSE:AXP) and the case for pricing power

Buffett told CNBC that American Express "earns 30% plus on capital" without taking on more risk than banks earning 13% or 14%, per the interview transcript. The first quarter of 2026 backed that up.

Revenue reached $18.9 billion, up 11% year over year, and earnings per share hit $4.28, an 18% increase, according to the company's earnings release filed with the SEC. Card member spending grew 10%, the highest quarterly growth in three years, CEO Stephen Squeri noted in the release.

Coca-Cola (NYSE:KO) and 64 years of compounding

Berkshire has held Coca-Cola since 1988, and its concentrate-based model keeps capital needs light relative to the cash it generates. In the first quarter of 2026, revenue rose 12% to $12.47 billion, organic sales climbed 10%, and adjusted earnings per share increased 18% to $0.86, according to CNBC.

Zero Sugar sales grew 13% across every geographic segment, per the company's SEC filing. The board approved its 64th consecutive annual dividend increase in February 2026, raising the quarterly payout to $0.53, according to TheStreet.

Moody's (NYSE:MCO) and the credit-rating duopoly

Berkshire has held Moody's since it spun off from Dun & Bradstreet in 2000. The ratings business operates as half of a duopoly with S&P Global, giving it pricing power with minimal physical infrastructure. First quarter 2026 results showed record performance, according to the company's SEC filing.

The following figures show how Moody's performed in the first quarter, beating projections:

• Revenue of $2.08 billion, up 8% year over year.
• Adjusted diluted earnings per share of $4.33, up 13%.
• Adjusted operating margin of 53.2%, expanding 150 basis points.

Management cited "AI-related financing from hyperscalers" as a driver of record rated issuance above $2 trillion, per the earnings release. Moody's is effectively collecting fees on the very AI capital spending that gives Buffett pause about Alphabet.

Occidental Petroleum (NYSE:OXY) and the debt turnaround

Occidental is an outlier on this list since oil production is capital-heavy by nature. Berkshire's interest may rest on the pace of its balance-sheet repair. Berkshire holds roughly 264.9 million OXY shares, about a 26.6% stake, plus $8.5 billion in preferred stock and warrants, according to GuruFocus filings data.

Principal debt has fallen from about $20.8 billion in the third quarter of 2025 to $13.3 billion through early May 2026, as reported by TheStreet. First quarter free cash flow surged 52% year over year, even with oil prices roughly flat.

Where Apple, Bank of America, and Chevron fit

Buffett did not disclose his full ranking. When CNBC's Quick named Apple (NASDAQ:AAPL), the railroad, and American Express as likely top picks, Buffett replied, "I'm not going to get into the whole priority," per the interview transcript. He also counts fully owned subsidiaries like BNSF Railway when comparing his favorites.

As of Berkshire's first quarter 2026 13F filing, Apple remained the largest equity position at roughly 22%, with American Express at 17.4%, Coca-Cola at 11.6%, Bank of America (NYSE:BAC) at 9.5%, and Chevron (NYSE:CVX) at 6.6%.

Bottom line

Buffett's comments reveal a consistent thread where he favors businesses that earn high returns on capital without needing enormous reinvestment to stay competitive in the market. If you are ready to start investing, his framework may be worth weighing alongside your own risk tolerance.

That does not mean Alphabet is a poor business. Buffett called it "more likely to be a winner" than most of what Wall Street offers, per the interview. The distinction is between companies he admires and companies he loves.