Exploring Top Berkshire Hathaway Stocks Amid Market Challenges
If you’re considering blue chip stocks to invest in, examining Berkshire Hathaway‘s portfolio is a solid starting point. Warren Buffett’s company consistently features strong investments that can be held for years, if not indefinitely. However, some of Berkshire’s leading stocks are currently experiencing challenges this year.
Where to invest $1,000 right now? Our analyst team identified the 10 best stocks to buy presently. Continue »
Market Overview of Top Holdings
Apple (NASDAQ: AAPL), American Express (NYSE: AXP), and Occidental Petroleum (NYSE: OXY) represent some of Berkshire’s top holdings. Unfortunately, these stocks have dipped at least 5% this year, with a few dropping over 20%. Examining the reasons behind these declines may present a buying opportunity for investors.
Image source: The Motley Fool.
1. Apple
Apple has long been the top holding in Berkshire’s portfolio, admired by Buffett for its substantial moat. The company maintains strong financials characterized by high margins and significant free cash flow.
The recent quarterly report revealed a 5% increase in net sales to $95.4 billion. In the last six months, Apple has generated nearly $54 billion in cash from operations.
As of Monday, Apple’s stock has dropped 20% this year, largely due to concerns about its artificial intelligence strategy impacting future growth. Nonetheless, long-term investors might view this as a temporary setback for a generally strong company.
Currently, the shares are trading at 32 times the company’s trailing earnings, a decrease from the multiple of over 41 earlier in the year, presenting a potentially good entry point for long-term investors.
2. American Express
American Express, Berkshire’s second-largest holding, has rallied recently. Although it still faced losses earlier this week, they were no longer in double digits, down just over 5% overall.
A strong earnings report in April alleviated concerns about slowing growth, with a 7% revenue increase and a 9% rise in earnings per share. Notably, the company reported card member spending and credit performance as being robust, sometimes exceeding previous year figures.
American Express caters to a wealthier clientele, making it a more stable investment in economic downturns. With a price-to-earnings ratio of less than 20, it remains a reasonably priced option among Buffett’s stocks.
3. Occidental Petroleum
Occidental Petroleum, the seventh-largest holding in Berkshire’s portfolio, is facing a decline of 21% this year. Investors are fleeing oil and gas stocks amid falling commodity prices; the SPDR S&P Oil & Gas Exploration & Production ETF is down 14% in 2025.
Occidental has experienced significant earnings volatility in recent years, which may continue, considering uncertainties around tariffs and economic conditions. However, this sector’s volatility is typical. Over the last four years, Occidental has posted operating profits ranging from $4.7 billion to $13.7 billion.
Investors considering Occidental now, while prices are low, might find value in its potential rebound. Additionally, the stock offers a 2.4% yield, outperforming the S&P 500’s average of 1.4%, making it an appealing income investment.
Should You Invest $1,000 in Apple Right Now?
Before deciding to buy Apple stock, consider this:
Recently, our analyst team highlighted the 10 best stocks for current investment opportunities—Apple was notably absent from this list. The chosen stocks, including past winners like Netflix and Nvidia, could offer substantial returns in the upcoming years.
Consider that if you invested $1,000 in Netflix when it was recommended on December 17, 2004, you’d now have $613,546!* Similarly, an investment of $1,000 in Nvidia since April 15, 2005, would be worth $695,897!*
It’s important to note that the average return for the Stock Advisor service has been 893 %—significantly outperforming the S&P 500’s 162% return. Stay informed on the latest top stock picks available with Stock Advisor.
*Stock Advisor returns as of May 5, 2025
American Express is an advertising partner of this publication. David Jagielski has no position in any of the stocks mentioned. The publication has positions in and recommends Apple and Occidental Petroleum.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
