Warren Buffett's American Portfolio Picks: Navigating Tariffs and Uncertainty with Coca-Cola, American Express & Pool Corporation

Julian WestTuesday, May 20, 2025 9:59 pm ET
74min read

In an era of escalating trade tensions and economic uncertainty, Warren Buffett’s

Berkshire Hathaway
portfolio offers a masterclass in identifying companies that thrive despite global headwinds. By focusing on U.S.-centric businesses with minimal tariff exposure and robust fundamentals, Buffett’s strategy underscores the power of long-term value investing. Three standout holdings—Coca-Cola (KO), American Express (AXP), and Pool Corporation (POOL)—exemplify this approach, offering investors a shield against trade wars and a lever for sustained growth.

1. Coca-Cola (KO): The Timeless Beverage Giant

Coca-Cola remains a cornerstone of Buffett’s portfolio, accounting for 9.32% of the holdings as of Q1 2025. Its dominance lies in its domestic market resilience, where 60% of sales come from North America. Unlike companies reliant on cross-border manufacturing or exports, Coca-Cola’s local bottling networks and brand loyalty insulate it from tariff-driven disruptions.


Despite market volatility, KO’s stock has held steady, outperforming the S&P 500 over five years. Its free cash flow yield of 7.5% and dividend payout ratio of 65% further highlight its cash-generative strength—a hallmark of Buffett’s preferred investments.

2. American Express (AXP): The Financial Titan with Domestic Muscle

American Express, a 16.84% stake in Berkshire’s portfolio, thrives on its premium credit card and travel services, which cater to affluent U.S. consumers. Its business model is inherently shielded from tariffs, as its revenue stems from transaction fees and service fees—areas unaffected by trade disputes.


AXP’s ROE of 18% (vs. 12% for Visa and Mastercard) reflects Buffett’s preference for companies with superior capital allocation. With $11.4 billion in cash reserves, AXP can capitalize on opportunities in domestic lending or digital payment innovations, ensuring steady growth even amid global slowdowns.

3. Pool Corporation (POOL): The Hidden Gem of U.S. Leisure

While lesser-known, Pool Corporation’s addition to Berkshire’s portfolio signals Buffett’s bet on domestic discretionary spending. As the world’s largest pool supply distributor, POOL serves a niche market with no meaningful import competition. Its 90% U.S. revenue exposure and high recurring customer base (pools require annual maintenance) make it a tariff-proof cash machine.


POOL’s 12% annual revenue growth and net profit margin of 11% (double industry averages) underscore its efficiency. With a debt-to-equity ratio of 0.5, it’s primed to expand through acquisitions or new markets, a classic Buffett move to amplify shareholder value.

Why These Picks Matter Now

Buffett’s focus on these three companies aligns with two critical themes: domestic economic moats and cash flow predictability. All three generate the majority of their revenue within the U.S., avoiding the volatility of global supply chains. Their low price-to-earnings ratios (KO at 22x, AXP at 14x, POOL at 18x) contrast sharply with the S&P 500’s 28x multiple, offering undervalued entry points.

Meanwhile, Berkshire’s record $165 billion cash position highlights Buffett’s cautious optimism—a sign to act now while valuations remain attractive.

Conclusion: Act Before the Tide Turns

Warren Buffett’s portfolio isn’t just a list of stocks—it’s a roadmap for investors seeking stability in turbulent times. Coca-Cola, American Express, and Pool Corporation are not just beneficiaries of their domestic markets; they’re anti-fragile businesses that grow stronger as trade wars strain others.

The data is clear: these companies deliver superior ROE, reliable cash flows, and minimal exposure to global headwinds. As Buffett prepares for the “opportunity of a lifetime” with his cash reserves, now is the moment to mirror his bets—before the market catches up.

Investors who move swiftly to secure these positions will position themselves to profit from the next leg of Buffett’s legendary track record. The question is: Will you wait for the market to recognize their value, or act now?

This analysis is based on Berkshire Hathaway’s Q1 2025 13F filing and publicly available financial data.