In this article, we will discuss 10 Best Warren Buffett Stocks to Buy Right Now.
Warren Buffett is one of the most successful investors the world has known. Additionally, he is arguably one of the strongest supporters of long-term investing. Buffett uses his hedge fund, Berkshire Hathaway, to invest in solid businesses, and he frequently keeps such stocks for years or even decades.
Warren Buffett wagered $1 million in 2007 that the broader market index fund would outperform a group of hedge funds over ten years. Buffett’s preferred Vanguard Index Fund Admiral Shares produced average yearly returns of 7.1%, despite the 2008 financial crisis, compared to the average of the hedge funds of 2.2%. While hedge funds only reached $121,000 by 2016, a $100,000 investment in Vanguard grew to $185,000. The primary issue was fees, with hedge funds’ 2% management fees and 20% profit share reducing earnings compared to index funds’ 0.03% fees. Buffett’s straightforward approach, supported by inexpensive investing, far outpaced pricey active management.
Warren Buffett made it clear in his 2025 shareholder letter that Berkshire is not abandoning stocks, even though some analysts claim that the company has a record $334 billion in cash that it is reserving. Buffett tells shareholders,
“Despite what some commentators currently view as an extraordinary cash position at Berkshire, the great majority of your money remains in equities. That preference won’t change.”
Buffett’s longtime belief that equities, which represent ownership in successful companies, are still the best way to build wealth over the long run is reflected in this position. He cautions against turning to cash or bonds, particularly in inflationary times when bond returns lag behind price increases and the currency depreciates.
Buffett’s value investing concepts remain intact even as markets shift. He draws attention to the company’s growing stakes in five significant Japanese trading firms, which represents an exceptional but purposeful venture into international stocks. He mentioned that after reviewing the financial records, they were surprised by how undervalued the stocks appeared. Despite some of these equities declining by as much as 24% over the past year, he regarded these downturns as investment opportunities rather than reasons for concern. He also emphasized that their holdings in these five companies were intended to be long-term investments.
Buffett’s conviction that patient investors will eventually be rewarded by undervalued companies with solid fundamentals is seen in Japanese investments. He commends these businesses for their prudent capital management, shareholder-friendly practices, and fair executive pay. Buffett’s strategy highlights a key idea in value investing: if the underlying company is favorable, short-term price volatility doesn’t matter. Buffett has shown throughout his career that he does not hesitate to look for bargains, even if they are located outside of the United States.
The route to success continues to be apparent for investors who want to follow in Buffett’s footsteps: own up to your mistakes, stick with profitable assets like equities, and patiently invest where value is present despite short-term noise.
With that said, here are the 10 Best Warren Buffett Stocks to Buy Right Now.
Methodology
For this article, we scanned Warren Buffett’s Q4 2024 portfolio. From the resultant dataset, we chose 10 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of over 1,000 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock’s revenue growth (year-over-year) as a tiebreaker in case two or more stocks have the same number of hedge funds invested.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Investors: 81
Revenue Growth Rate (year-over-year): 0.39%
The multinational oil company, Chevron Corporation (NYSE:CVX) engages in exploration, production, and refining activities. It produces 3.1 million barrels of oil equivalent per day, which includes 1.8 million barrels of liquids and 7.7 million cubic feet of natural gas, making it the second-largest oil firm in the US. Production takes place throughout South and North America, Asia, Africa, Australia, and Europe.
It recently disclosed a partnership to create scalable power solutions, including carbon capture and storage, based on natural gas-fired turbines to satisfy the growing energy needs of data centers in the United States. Moreover, the company successfully started producing gas from the Sanha Lean Gas Connection project, guaranteeing the Angola Liquefied Natural Gas facility a steady supply of natural gas. Chevron Corporation (NYSE:CVX) has gone up by about 5% since the start of 2025, making it one of the Best Warren Buffett Stocks.
In 2024, Chevron Corporation (NYSE:CVX) broke records and exceeded expectations. While output in the United States rose by an astounding 19% to record levels, output globally grew by 7%. Looking ahead to 2025, growth is projected to continue, supported by the full-year benefits of the PDC Energy acquisition, which closed in August 2023. The introduction of significant projects in the Gulf of Mexico and continued growth in the Permian Basin, where output jumped by 18%, further strengthened its overall performance.
Warren Buffett’s Berkshire Hathaway was the largest stakeholder in the company among the funds in Insider Monkey’s database at the end of Q4 2024. It owns 118.61 million shares worth $17.18 billion as of Q4.
9. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Investors: 81
Revenue Growth Rate (year-over-year): 2.86%
One of the Best Warren Buffett Stocks, Coca-Cola Company (NYSE:KO), a long-time Buffett favorite, has increased its cash dividend to investors for an impressive 63 consecutive years. A common misconception among investors is that it is only a soda business. However, its beverage empire extends well beyond the pop brand that bears its name. These days, the company’s diversified product line includes bottled milk, water, coffee, tea, juice, and even alcoholic beverages. These products are marketed under popular names such as Smartwater, Fairlife, Costa Coffee, Fuze, Minute Maid, and Simply.
The key to The Coca-Cola Company (NYSE:KO)’s success is its ability to quickly scale its revenue by developing or acquiring a new brand and incorporating it into its extensive global marketing strategy. The distribution dynamo can then reinvest its profits in new product development or other acquisitions, or it can distribute dividends to shareholders.
For over thirty years, one of Buffett’s main holdings has been The Coca-Cola Company (NYSE:KO). In the years to come, Berkshire’s $28 billion investment in the beverage giant will likely grow substantially because there is still a lot of room for expansion in both the domestic and foreign markets.
The beverage titan generated $2.9 billion in operating cash flow and $1.6 billion in free cash flow in the most recent quarter, demonstrating outstanding cash flow management. Its profitability was further proven by its strong adjusted operating margin of 30.7%.
8. Capital One Financial Corporation (NYSE:COF)
Number of Hedge Fund Investors: 89
Capital One Financial Corporation (NYSE:COF) uses its online and mobile channels to attract new clients and manage existing ones while maintaining a smaller branch network than its traditional banking counterparts. The company has been able to expand its national reach beyond what its limited branch network would normally permit because of its focus on online bank accounts. This arrangement enables the firm to profit from the size of a major bank without having to pay for the upkeep of a large bank’s branch network.
The Delaware State Bank Commissioner gave Capital One Financial Corporation (NYSE:COF) permission to finalize its acquisition of Discover Financial Services and its subsidiary, Discover Bank, on December 19. In February 2024, a final deal was reached between the two businesses to acquire Discover for $35.3 billion. It is anticipated that the deal will be finalized in early 2025.
The move has bolstered investor confidence in Capital One Financial Corporation (NYSE:COF). Amalthea Fund stated the following regarding the acquisition in its Q3 2024 investor letter:
“US Credit cards have become a concentrated business. The leading players in order are Chase, a part of JPMorgan, American Express, Citi, Capital One, Bank of America, and Discover. A combination of Capital One and Discover will become the number two player.”
Following Bank of America’s upgrade of the shares from Neutral to Buy, Capital One Financial Corporation (NYSE:COF) shares rose by 3%. The bank raised the firm’s price target from $207 to $235. BofA anticipates greater synergies compared to expectations from the company’s impending acquisition of Discover Financial Services.
Bullish optimism is further fueled by Capital One Financial Corporation’s (NYSE:COF) strong financial performance. The business reported $10.2 billion in net revenue for the fourth quarter of 2024. Compared to the same period of the previous year, when net income was $706 million, or $1.67 per diluted common share, it rose to $1.1 billion, or $2.67 per diluted common share, for the quarter. The stock rose by more than 10%, making it among the Best Warren Buffett Stocks.
7. Moody’s Corporation (NYSE:MCO)
Number of Hedge Fund Investors: 91
Moody’s Corporation (NYSE:MCO) is a prominent, wide-moat company that dominates the worldwide credit ratings market and is quickly expanding its footprint in financial analytics. Over 80% of Moody’s $6.59 billion in revenue in 2023 was categorized as recurring, showing the firm’s remarkable stability during economic cycles. It is a vital participant in the capital markets because its main Moody’s Investors Service (MIS) division, which accounts for 60% of revenue, directly profits from the issuing of global debt. High hurdles to entry, pricing power, and enduring customer relationships with businesses, governments, and financial institutions all contribute to Moody’s firmly established position, which holds a 34% global credit rating market share, second only to S&P Global.
One of the main forces of diversification and long-term growth is the Moody’s Analytics (MA) division, which accounts for 40% of revenue. This segment reduces dependency on bond issuance cycles by generating high-margin, subscription-based revenue through the provision of risk modeling, regulatory solutions, and ESG-related data. Moody’s Corporation (NYSE:MCO) has carefully grown this market by taking advantage of the rising need for enterprise risk management and predictive analytics technologies.
It is still one of the most profitable financial services companies in the world, with gross margins of 72.1%, operating margins of 45.5%, and net margins of 32.4% in 2023. Consistent dividends and share buybacks are supported by $2.04 billion in free cash flow, which increases shareholder returns.
Moody’s Corporation (NYSE:MCO)’s also gains from worldwide diversification; 43% of its revenue comes from sources outside the United States, putting it in a position to take advantage of the expansion of emerging markets. The business is well-positioned for long-term revenue growth, margin expansion, and shareholder value generation due to its strong competitive positioning, pricing strength, and secular tailwinds in risk analytics and ESG products.
6. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Investors: 101
One of the Best Warren Buffett Stocks and American global investment banking firm, Citigroup Inc. (NYSE:C) provides its customers with a broad range of associated products and services. Global Consumer Banking, Institutional Clients Group, and Treasury and Trade Solutions are the three main business sectors into which the corporation divides its operations. The business makes use of its wide clientele and global reach in an effort to improve its competitive edge. The stock has shot up by nearly 4% year to date.
Citigroup Inc.’s (NYSE:C) net income jumped by almost 40% to $12.7 billion in fiscal year 2024, surpassing its yearly revenue goal. This growth was fueled by solid performances in its Services, Wealth, and US Personal Banking segments. The business successfully completed a significant restructuring, increased its efficiency ratio, and handled expenses well. Revenue for the year came to $81.1 billion, up 3% from the year before.
In 2024, Citigroup Inc. (NYSE:C) distributed $6.7 billion in dividends and share repurchases, demonstrating its dedication to shareholder returns. It has a 34-year history of consistently paying dividends.
BofA maintained its Buy rating on Citigroup Inc. (NYSE:C) shares and increased its price objective from $95 to $100. The analyst tells investors that despite the recent tariff headlines, there is still hope that a pro-business Trump administration will lead to stronger customer activity. This conclusion is based on the firm’s meetings with more than 30 Wall Street and Main Street banks at BofA’s annual financial services conference. In response to growing confidence in regulatory relief and EPS growth, the firm lifted price estimates for a number of globally significant banks.
5. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Investors: 113
Bank of America Corporation (NYSE:BAC) is an American financial services corporation that provides its customers with a variety of connected goods and services. Offering millions of consumers a variety of financial services, including checking accounts, credit cards, mortgages, and loans, the corporation has a significant presence in the retail banking market. While Merrill and BofA Securities, its investment banking and asset management departments, offer trading, financial planning, and consulting services, its innovative digital banking platform improves accessibility.
Bank of America Corporation (NYSE:BAC) announced strong financial results in the fourth quarter of 2024, as revenue climbed to $25.3 billion from $22 billion in the same time the year before. Net income jumped from $3.1 billion to $6.7 billion, more than double from the same period last year. Along with expanding its clientele, the business opened 213,000 new consumer checking accounts, continuing its six-year run of quarterly growth. Furthermore, it paid dividends to shareholders totaling $2 billion.
Bank of America Corporation (NYSE:BAC) declared that Johnbull Okpara will succeed Rudolf A. Bless as Chief Accounting Officer, starting March 1, 2025. Prior to joining the company in November 2024, Mr. Okpara held important roles at Morgan Stanley and Citigroup Inc. It is believed that his joining will contribute a wealth of knowledge to the position, which could affect the strategic planning and financial operations of the business.
4. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Investors: 151
Mastercard Incorporated (NYSE:MA), an American credit card company and one of the Best Warren Buffett Stocks, offers its clients a variety of payment processing and related services. Mastercard has shown an amazing total CAGR return of 29.9% since its initial public offering in 2006, making it one of the finest investments over time. This kind of success shows Mastercard’s tenacity and the durability of its business plan, which is protected against inflation and external competition.
Following the company’s strong fourth-quarter 2024 earnings, Raymond James raised its price objective from $614 to $640 and kept its Outperform rating on the stock. The business highlighted Mastercard Incorporated (NYSE:MA)’s consistent performance and noted that while initial projections may be lower, this is primarily due to changes in foreign exchange rates and transaction-related operating costs.
In the fourth quarter of 2024, Mastercard Incorporated (NYSE:MA) generated $7.5 billion in sales, a 14% growth over the same time the year before. During the quarter, the company’s net income climbed from $3 billion to $3.5 billion. By December 31, 2024, 3.5 billion Mastercard and Maestro-branded cards had been issued to customers.
Mastercard Incorporated (NYSE:MA) had over $8.4 billion in cash and cash equivalents at the end of the quarter, while its total assets were over $19.7 billion. In fiscal year 2024, the company’s operating cash flow was $14.7 billion, up from $12 billion in fiscal year 2023. They were able to distribute $2.4 billion in dividends to shareholders throughout the year because of their strong financial position. It has increased dividends for 13 consecutive years.
Bretton Fund stated the following regarding Mastercard Incorporated (NYSE:MA) in its Q4 2024 investor letter:
“Visa and Mastercard Incorporated (NYSE:MA) kept doing their thing, increasing earnings per share by 15% and 12%, respectively, with their stocks returning 22% and 24%. We continue to closely watch the evolving payments space as it seems like everyone’s always trying to displace the card networks. For now, we don’t see anything gaining much traction.”
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL), a tech giant, is the third Best Warren Buffett Stock. It had a strong first quarter of fiscal 2025, with revenue of $124.3 billion, up 4% from the previous year, and earnings per share of $2.40, up by 10%. The business attributed the double-digit EPS rise to record revenue and robust margins, which enabled Apple to distribute over $30 billion back to shareholders. The firm set new revenue records in emerging markets like South Asia, the Middle East, and Latin America. The iPhone was the best-selling model in India during the December quarter, setting a new record. Services revenue climbed 14% year over year to an all-time high of $26.3 billion, driven by higher customer interaction and growth in all geographic segments. Moreover, the launch of new products and high consumer demand drove iPad revenue to $8.1 billion, up 15% YoY, while Mac revenue was $9 billion, up 16% YoY.
Apple Inc. (NASDAQ:AAPL) is investing $500 billion over the next four years to increase its US footprint, bringing the production of AI servers to Houston and adding 20,000 new jobs. With this action, Apple is attempting to get Trump’s tariffs on Chinese products to be lifted. The investment will help fund higher expenditures with American suppliers, a new server facility, and a supplier academy in Michigan. The business will start manufacturing AI servers this year in Houston in partnership with Foxconn, with a larger factory scheduled to open in 2025.
On February 19, 2025, Apple Inc. (NASDAQ:AAPL) unveiled the iPhone 16e, an improved budget-friendly variant. The 16e has Apple Intelligence, Apple’s suite of AI technologies, and the company’s first-ever in-house cellular modem, known as the C1. It has improved processing, display, camera, and battery life over the previous iPhone SE.
2. Visa Inc. (NYSE:V)
Number of Hedge Fund Investors: 181
Visa Inc. (NYSE:V) makes a remarkable amount of international trade possible. The payments network of the fintech behemoth extends to more than 200 countries and territories. It facilitates simpler purchases at more than 150 million merchant locations for customers, who together own a staggering 4.7 billion credit and debit card accounts. In 2024, the world’s largest payment processor processed a remarkable 310 billion transactions, totaling about $16 trillion.
Visa Inc. (NYSE:V) is in a strong position to gain from the long-term expansion of the global economy because of its established role as a quick and safe payment processor. Even though it only charges a nominal fee for each payment it handles, the total of these fees adds up to massive sums. The company’s 2024 fiscal year ended September 30, with a 14% growth in net income to a whopping $19.7 billion.
Recent quarters have witnessed a comparatively steady performance for Visa Inc. (NYSE:V), as growth has flattened out and one-time effects have diminished. When analyzed separately, its fiscal first-quarter 2025 statistics showed that the company’s performance remained consistent, with sales increasing by 10.15% year on year. The firm continues to benefit from a stable environment and favorable long-term secular growth prospects.
Visa Inc. (NYSE:V) has been a market leader for a long time and continues to have promising growth potential. Its place in the global electronic payment infrastructure is virtually unchallengeable, even in light of the payment industry’s continuous innovation.
1. Amazon.com Inc. (NASDAQ:AMZN)
Number of Hedge Fund Investors: 339
Amazon.com, Inc. (NASDAQ:AMZN) is the Best Warren Buffett Stock because it controls the markets it services, especially in e-commerce and cloud computing. It has a lot of benefits over its rivals and has emerged as the clear leader in e-commerce because of its scale and reach, which provide clients with an unmatched selection of affordable products. Despite its size, the company continues to increase its market share, showing the secular trend toward e-commerce. Prime not only integrates Amazon’s e-commerce efforts but also offers a steady stream of high-margin recurring revenue from customers who make more frequent purchases from the company’s domains. In return, customers get one-day shipping on millions of items, exclusive video content, and other perks, which creates a powerful positive feedback loop that attracts both buyers and sellers. The Kindle and other devices further reinforce the ecosystem by drawing in new customers and attracting existing ones with their value offer.
Operating cash flow for the trailing twelve months period was $115.9 billion, up 36% from $84.9 billion for the same time in the previous year, which concluded in December. In February, Amazon.com, Inc. (NASDAQ:AMZN) announced that it would invest over $100 billion in capital expenditures this year, with a significant focus on artificial intelligence advancements. This decision was taken in spite of DeepSeek’s success as a Chinese AI startup, which is renowned for producing incredibly effective and affordable AI models that have ignited the IT sector. Amazon allocates a large portion of its capital expenditures to AI development through AWS, or Amazon Web Services, which demands initial hardware and data center investments to support the platform’s rapid growth.
Fred Alger Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Amazon.com, Inc. (NASDAQ:AMZN) is a renowned online retailer and leader in cloud computing. The company’s Amazon Web Services (AWS) division offers utility-scale cloud solutions that support corporate America’s digital transition. During the quarter, Amazon’s shares contributed to performance as the company reported better-than-expected fiscal third-quarter results, with revenues and earnings beating analyst estimates. Operating margins expanded to 11%, driven by efficiency gains in logistics and robust AWS performance. Notably, AWS revenue growth accelerated during the quarter, along with recording its highest-ever operating margin of 38.1%, driven by easing cloud cost optimizations, renewed workload migrations, and an increasing contribution from AI workloads. On their earnings call, management highlighted plans to increase capital expenditures to enhance their technology infrastructure, catering to the surging demand for AI-driven computing.”
Overall, Amazon.com, Inc. (NASDAQ:AMZN) ranks first on our list of the 10 Best Warren Buffett Stocks to Buy Right Now. While we acknowledge the potential for AMZN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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