5 Best Warren Buffett Stocks To Buy Now

In this article, we discuss the 5 best stock picks of Warren Buffett. If you want our detailed analysis of these stocks, go directly to the 15 Best Warren Buffett Stocks To Buy Now. 

5. American Express Company (NYSE:AXP)

American Express is the fifth biggest holding of Warren Buffett as his hedge fund owns a 151 million shares of the company, worth $21 billion. American Express (NYSE:AXP) recently fell after the company posted Q3 results which included an increased provision for credit losses amid the uncertain economic outlook. The company’s U.S consumer credit card delinquency rate also increased in September from August. The stock has a dividend yield of 1.49% as of October 23.

As of the end of the second quarter, 67 hedge funds tracked by Insider Monkey had stakes in the company. Warren Buffett is the biggest stakeholder of the company. Fisher Asset Management of Ken Fisher has a $2.1 billion stake in the company.

4. Chevron Corporation (NYSE:CVX)

As of the end of the second quarter, Warren Buffett owns 161 million Chevron shares, which are worth $23.4 billion. Chevron, like other major oil companies, has been gaining in 2022 amid rising energy prices. In January this year, Chevron board declared a quarterly dividend of $1.42 per share, a 6% increase.  The company is on track to mark 2022 the 35th consecutive year with an increase in annual dividend payout per share.

Smart money is also increased its hold in Chevron. A total of 59 hedge funds in our database reported having stakes in the company at the end of June, compared to 53 in the quarter earlier.

Here is what Diamond Hill Long-Short Fund has to say about Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter:

“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”

3. The Coca-Cola Company (NYSE:KO)

Berkshire Hathaway has been holding stakes in Coca-Cola for over a decade now. It has made billions in dividends from the company that is a dividend king as it has raised its payout for 60 years, an extraordinary feat. Warren Buffett’s hedge fund owns 400 million shares of the beverage company, worth $25.2 billion.

In August, UBS named Coca-Cola Company (NYSE:KO) one of its high conviction picks. The investment firm said Coca-Cola has shown a “greater willingness” to pursue higher growth opportunities through mergers and acquisitions, investment into core brands, and innovation.

Here is what Aristotle Capital specifically said about The Coca-Cola Company (NYSE:KO) in its Q2 2022 investor letter:

“The Coca-Cola Company (NYSE:KO), the global beverage business, was a leading contributor for the period. Coca-Cola continues to benefit from the refranchising of its bottling operations and realignment of incentives, catalysts we previously identified. These initiatives are demonstrating their strength in an inflationary and supply-chain-challenged environment. Additionally, the company has focused on evolving its customer engagement practices by leveraging digital and social medias for targeted campaigns, such as the design and launch of Coke Byte in the metaverse. Lastly, Coca-Cola has furthered its transformation into a total beverage company, as it debuted its new Jack Daniel’s Tennessee Whiskey and Coca-Cola ready-to-drink premixed cocktail. Although uncertainties surrounding cost pressures, lockdowns and geopolitical conflicts remain, we believe Coca-Cola is uniquely positioned to successfully continue its transition toward a total beverage business.”

2. Bank of America Corporation (NYSE:BAC)

A financial behemoth, Bank of America has upped its dividend for 8 consecutive years. Warren Buffett has long been a fan of Bank of America, as he initiated a stake in the company in the third quarter of 2017. At the end of June, Berkshire had a $31.4 billion stake in the company.

Bank of America (NYSE:BAC) is benefiting from hikes in interest rates, as evidenced by its strong Q3 results, which were also helped by robust global market revenue. Bank of America is the 17^th most popular stock among the 895 hedge funds tracked by Insider Monkey as of the end of the second quarter.

Here is what Diamond Hill Capital Management specifically said about Bank of America Corporation (NYSE:BAC) in its Q2 2022 investor letter:

“Bank of America Corporation (NYSE:BAC) shares were weak in Q2 as the market became increasingly focused on the possibility of a near-term recession and the potential for credit losses along with current fee revenue pressures.”

1. Apple Inc. (NASDAQ:AAPL)

Apple is one of the best Warren Buffett stocks, as the company has strong growth potential and it also pays attractive dividends. The Oracle of Omaha had a $122 billion stake in Apple as of the end of June. Morgan Stanley recently named Apple among their top picks despite acknowledging the short-term risks to consumer and enterprise businesses.

Here is what Wedgewood Partners specifically said about Apple Inc. (NASDAQ:AAPL) in its Q3 2022 investor letter:

“Apple Inc. (NASDAQ:AAPL) grew revenues +5% (foreign exchange adjusted and excluding Russia) driven by record iPhone revenues that were up about +3% on an exceptional year ago comparison of +50%. Apple’s installed base is over 1.8 billion devices which helps drive a software and services business that has generated almost $80 billion of revenue over the past 4 quarters. As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially ICs) as well as software, continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”

You can also take a look at 10 Healthcare Dividend Stocks with Over 3% Yield and 10 Best Solar Energy Stocks to Buy for 2022.

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