Warren Buffett’s Berkshire Hathaway: Top Investment Picks in 2025
Warren Buffett’s career as an investor has been remarkable. His ability to identify undervalued assets transformed a struggling textile mill into a company valued at $1 trillion by 2025.
As of the first quarter, Buffett’s Berkshire Hathaway boasts a stock portfolio valued at $263 billion. This portfolio features numerous robust companies capable of enhancing investor savings. Some of these assets are managed by Buffett’s investment deputies, Todd Combs and Ted Weschler.
Key Stocks Worth Considering Now
Coca-Cola (NYSE: KO), Domino’s Pizza (NASDAQ: DPZ), and Amazon (NASDAQ: AMZN) represent solid options within Berkshire’s holdings, making them attractive choices for any investor’s portfolio.
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Buffett’s Longest-Held Stock
Jennifer Saibil (Coca-Cola): Warren Buffett has owned Coca-Cola stock for 37 years and has pledged never to sell it. Despite criticism regarding its recent market performance, Coca-Cola remains a strong choice for a well-diversified portfolio.
The company, the world’s largest beverage producer, generated nearly $47 billion in sales over the last year. Amid global economic turmoil, its sales and profitability have remained strong. Coca-Cola maintains a beloved global brand, satisfying a basic consumer need. The company has effectively managed to raise prices without deterring demand, even introducing smaller packaging options for convenience.
Investors have also appreciated how CEO James Quincey has navigated tariffs by localizing production. Much of Coca-Cola’s concentrate is produced in the U.S., providing some insulation from tariff impacts.
Additionally, Coca-Cola is a Dividend King, having increased its dividend for 63 consecutive years—outlasting Buffett’s tenure at Berkshire. Currently, its dividend yield stands at 2.7% this year, pushed up by a 15% stock performance, though it typically hovers around 3%.
While young growth investors may not prioritize Coca-Cola, it offers safety and a source of passive income suitable for various investment strategies.
Image source: Getty Images.
A Recession-Resistant Restaurant Chain
Jeremy Bowman (Domino’s Pizza): Recent trade tensions and recession fears have affected many restaurant chains, including McDonald’s, Chipotle, and Starbucks, which have reported hitting traffic issues.
Domino’s presents itself as one of the most resilient chains in such economic environments. As a global franchisor, it offers excellent value and convenience during financial downturns, boasting a solid history of managing comparable sales across varying economic conditions.
In its first quarter, Domino’s reported 3.7% same-store sales growth internationally, despite a slight 0.5% decline in U.S. locations. Global retail sales increased by 4.7%.
With a franchise model and strong pizza demand, Domino’s appears well-positioned for future growth. The chain now operates over 21,000 outlets globally, including more than 7,000 in the U.S. This broad brand presence gives Domino’s a competitive edge and a recession-resistant business model.
Image source: Amazon.
Amazon’s Customer-Centric Strategy
John Ballard (Amazon): Amazon has significantly benefited investors over the past few decades by prioritizing customer satisfaction. The company’s seamless online shopping experience and vital cloud services have driven remarkable revenue and profit growth.
Berkshire Hathaway first invested in Amazon in 2019 and held onto 10 million shares at the close of 2024.
Though Amazon’s sales growth is slowing as the company matures, management is focused on improving efficiency and cost-effectiveness to enhance profit margins. The company’s net profit surged 64% year-over-year in the first quarter, reaching $17 billion, a rare feat among large businesses.
Amazon remains committed to enhancing customer experience. It is set to launch a satellite broadband service known as Project Kuiper, with the first satellites already in orbit. This initiative aims to provide underserved rural households with internet access, potentially bringing new customers into Amazon’s ecosystem.
# Amazon’s Expanding Network and Growth Potential Amidst Economic Challenges
Amazon is actively enhancing its delivery capabilities, committing $4 billion through 2026 to strengthen its rural delivery network in less populated areas across the U.S. This move highlights the company’s potential for continued expansion.
Cloud Services Fueling Amazon’s Growth
Internationally, Amazon also sees considerable growth opportunities. More businesses are migrating their data systems to the cloud, attracting more customers to Amazon Web Services (AWS). In Q1, AWS revenue increased by 17% year over year, accounting for over 60% of Amazon’s operating profit. This trend illustrates how businesses are leveraging artificial intelligence (AI) to innovate and improve their operations.
Recent Stock Performance and Future Projections
Year-to-date, Amazon’s stock has declined as Wall Street reacts to short-term economic challenges. However, analysts believe that investing in Amazon may yield significant returns in the long run, given its strategic growth initiatives.
Should Investors Consider Coca-Cola?
If you’re thinking about investing $1,000 in Coca-Cola, consider this:
The Motley Fool’s analyst team recently named the 10 best stocks for investors, and Coca-Cola did not make the list. The highlighted stocks have the potential to generate substantial returns in the future.
For example, if an investor had put $1,000 into Netflix on December 17, 2004, that investment would now be worth approximately $614,911.* Similarly, a $1,000 investment in Nvidia on April 15, 2005, would have grown to around $714,958!* This history emphasizes the importance of selecting stocks wisely.
It’s important to note that the average return for Stock Advisor is 907%, significantly outperforming the S&P 500’s 163% average return.
*Stock Advisor returns as of May 5, 2025
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Chipotle Mexican Grill, Domino’s Pizza, and Starbucks. The Motley Fool recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
