Top Investment Picks from Warren Buffett’s Notable Holdings

The exceptional financial achievements of Berkshire Hathaway and its CEO, Warren Buffett, draw considerable attention in the investment community. With a net worth exceeding $150 billion and a market capitalization surpassing $1 trillion as of April 7, it’s clear why investors keenly observe Buffett’s actions and insights.

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In uncertain market conditions like the present, many investors turn to Berkshire Hathaway’s stock portfolio for ideas. Buffett typically invests in resilient, high-quality businesses that tend to perform better even during economic downturns.

If you have $1,000 ready to invest (after establishing an emergency fund), consider the following two stocks. One is a long-standing Buffett favorite, and the other is a growing stock recently affected by new tariff announcements from President Trump.

1. Coca-Cola

Coca-Cola (NYSE: KO) ranks among the longest-held positions in Berkshire Hathaway’s portfolio, making up approximately 9.5% of its holdings. Buffett values two main aspects of Coca-Cola: its attractive dividend and its strong economic moat, which provides it an edge over competitors.

To begin with Coca-Cola’s financial appeal, investors are often drawn to its quarterly dividend of $0.51, which yields around 2.9% — significantly higher than the S&P 500 average over the last year. More impressively, Coca-Cola has increased its annual dividend for 63 straight years, earning the designation of Dividend King, with its dividend doubling over the past 13 years.

KO Dividend data by YCharts

For those seeking a resilient business, Coca-Cola is a proven choice. Its products maintain steady sales regardless of economic fluctuations, bolstered by strong pricing power, making the company relatively resistant to recessions.

Though Coca-Cola can experience downturns, its long-term investment potential remains strong. One of the distinct advantages it possesses over competitors is its expansive distribution network, with products available in over 200 countries. By focusing solely on beverages, Coca-Cola operates more efficiently compared to PepsiCo, which diversifies into snacks, resulting in greater net income for Coca-Cola despite lower revenues.

KO Revenue (Quarterly) data by YCharts

Buffett has famously said of Berkshire Hathaway, “Our favorite holding period is forever,” and Coca-Cola fits well into that long-term investment philosophy.

2. Amazon

Amazon’s (NASDAQ: AMZN) stock has faced challenges in 2025, suffering a loss of about 25% in value as of April 7. The combination of existing market struggles and the recent tariffs imposed by Trump has pressured the stock further.

Investors are understandably anxious as the new tariff plan increases costs for items imported from China, affecting many of Amazon’s third-party sellers. This could lead to higher prices for consumers. However, it’s essential to maintain perspective — this isn’t a long-term threat that should drive investors away from the stock.

While e-commerce remains Amazon’s core revenue, its growth and profit largely stem from Amazon Web Services (AWS). Although tariffs may impact Amazon’s e-commerce segment, AWS should remain relatively unscathed, given that it is primarily a digital service and largely unaffected by physical goods pricing shifts. Any increased costs for AWS-related data centers may be absorbed by Amazon rather than passed to customers.

Amazon has demonstrated that it can be a solid long-term investment, even amid sharp declines. This is not the first time the stock has dropped significantly, and for long-term holders, it is unlikely to be the last.

AMZN data by YCharts. The grey area indicates a recession period.

Once current market volatility subsides, Amazon’s stock could emerge as a strong buying opportunity.

Consider This Opportunity for Lasting Gains

Have you ever felt you missed out on investing in top-performing stocks? If so, there’s good news.

Our analysts occasionally provide a rare “Double Down” recommendation on stocks they believe are poised for substantial growth. If you worry that you’re too late to invest, now may be your time before prices rise further. Here are some compelling statistics:

• Nvidia: A $1,000 investment when we doubled down in 2009 would now be worth $244,570!*
• Apple: A $1,000 investment in 2008 would be valued at $35,715!*
• Netflix: A $1,000 investment from 2004 would have grown to $461,558!*

We are currently issuing “Double Down” alerts for three remarkable companies, and opportunities like this may not arise again soon.

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*Stock Advisor returns as of April 5, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, serves on The Motley Fool’s board of directors. Stefon Walters holds no positions in any of the stocks mentioned. The Motley Fool owns shares in and recommends Amazon and Berkshire Hathaway, following a strict disclosure policy.

The views expressed are solely those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.