A large number of people find it sensible to rely on Warren Buffett’s investment wisdom rather than their own, given that it may be challenging to identify a more consistently successful long-term investor than him. This makes perfect sense.
For more than half a century, he has consistently boosted the worth of Berkshire Hathaway’s shares at an average yearly pace of 19.8%. To put this into perspective, consider that during the same timeframe, the S&P 500 – a grouping of 500 large US corporations – averaged a growth rate of 10.2%, which is itself an impressive figure!
What’s Warren Buffett’s current investment strategy, and which of his stocks would be suitable for investing right now, regardless of whether you have $1,000 or $100,000 to put into the market? Here are a few potential investment options worth exploring.
Buffett’s investments
Berkshire Hathaway is a multinational conglomerate that owns numerous companies directly, including Dairy Queen International, See’s Candies, GEICO, Benjamin Moore, and the whole BNSF railroad. Additionally, it holds stocks in many other companies as well.
For several years, Buffett took on most investment responsibilities at Berkshire Hathaway. However, in recent times, his role has diminished due to having two investment deputies, Ted Weschler and Todd Combs, now in place. Each of them manages billions of dollars, and when Buffett retires at year’s end, they may be entrusted with more.
It’s worth noting that when you hear Buffett has acquired shares of a particular company, it may not always be Buffet himself who made the purchase. However, since his trusted lieutenants are skillful investors as well, paying attention to their buying and selling activities can be justified.
Some of Buffett’s best stocks to invest in might be those he (or Weschler or Combs) have recently invested in most heavily. Here are three recent acquisitions by Berkshire Hathaway, all of which involve increasing ownership of existing shares.
1. Occidental Petroleum
In recent years, Occidental Petroleum (OXY) has turned into a significant investment for Berkshire Hathaway. Currently, Berkshire owns close to 27% of the company, making it the sixth-largest stock in Berkshire’s portfolio. The top investments are in Apple, American Express, and Coca-Cola.
What makes Occidental appealing is that it’s a key player in the energy sector, though not one of the titans, and boasts substantial activities in the Permian Basin – an area known for its lower production costs when it comes to oil and natural gas. With its locations spanning western Texas and southeastern New Mexico, there’s a strong anticipation that Oxy (a nickname for the company) will become a significant provider of energy for the United States in the near future.
Concerns regarding Occidental’s debt burden have been addressed as the company has been diligently working to decrease it. Despite plans for expansion, it currently offers a dividend of 2.3%, making it an appealing choice for those prepared to wait.
2. Sirius XM Holdings
Warren Buffett is known for sticking to his area of expertise, and avoiding most tech stocks he doesn’t fully grasp. Therefore, it could be a purchase made by one of his lieutenants, Sirius XM Holdings (SIRI). This company provides satellite radio and streaming services, and is often considered a “legal monopoly” – and an incredibly affordable one, at that.
Berkshire Hathaway currently holds over a third of the company, making it one of the 14 largest investments in their stock portfolio. Optimistic investors appreciate the advertising revenue it generates and its subscription-based model, while cautious investors question if its high pricing is sustainable and are somewhat concerned about its future after Howard Stern retires.
3. Domino’s Pizza
Instead of rushing towards modern AI stocks, Buffett prefers to appreciate traditional heavyweights like Domino’s Pizza (DPZ). Berkshire Hathaway, in fact, owns around 7.6% of this company. Lately, Domino’s has been evolving into a tech-focused stock with enhancements in its digital ordering system and a corresponding app.
In over 90 markets worldwide, Domino’s Pizza boasts more than 21,000 outlets, generating an impressive $19 billion in yearly revenue, making it a colossal player in the global pizza industry. Its first-quarter sales soared by 4.7% compared to the previous year, indicating a robust global performance. Interestingly, since most of its locations are franchised (approximately 99%), Domino’s business model is less capital-heavy compared to owning numerous physical stores.
Domino’s Pizza is not only a well-known company but also offers dividends to its investors. Currently, it yields about 1.5%. Moreover, the payout has been increasing over time. In 2020, it was $4.40 per share, which grew to $6.50 in the most recent year, representing a significant rise from its initial value of $2.20 in 2018.
Take a closer look at the companies that catch your eye, and consider them further. It’s also beneficial to invest in a S&P 500 index fund that Warren Buffet recommends, as it can lead to success and simplify your investment process.
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2025-07-24 14:05