In this article, we will discuss: Growth Stock Portfolio: 12 Stock Picks By Warren Buffett.
Warren Buffett’s Berkshire Hathaway portfolio has long been a beacon for value investors looking for high-quality businesses with long-term competitive advantages. Since taking over as CEO of Berkshire six decades ago, the appropriately named “Oracle of Omaha” has outperformed the broader market.
As we approach 2025, some of Berkshire’s assets stand out as promising opportunities, combining excellent fundamentals with acceptable values despite the market’s sustained emphasis on technology and growth stocks.
Berkshire’s CEO is a strong believer in portfolio concentration. Buffett’s investment strategy revolves around choosing companies with significant competitive advantages, effective management teams, and the potential to create regular free cash flow. His concept focuses on buying exceptional firms at acceptable costs rather than inferior enterprises at low rates. This strategy has proven successful across numerous market cycles, with Berkshire Hathaway providing compound yearly returns significantly higher than market averages over several decades.
The “Oracle of Omaha” concentrates on companies he understands, avoiding complex technologies or models with uncertain earnings potential. He looks for companies with pricing power, great brand awareness, and the ability to preserve or grow market share even during economic downturns. Buffett’s conservative yet effective approach has helped him become one of history’s most successful investors.
Following the filing of Berkshire’s 13F on February 14, we now know that 60% ($180 billion) of Buffett’s $299 billion portfolio is concentrated in just four magnificent stocks.
Japanese stock investors are attentively watching Buffett’s letter in the hopes of gaining information that may affect the country’s trading houses. Buffett has previously approved Japanese trading companies, resulting in increased stock value. Market participants will examine his comments for clues about the future of these companies, particularly as they are impacted by decreasing energy prices and pressure from the US government to reduce oil expenses.
As usual, Buffett’s shareholder letter is expected to provide significant insights not only into Berkshire Hathaway’s performance but also into market trends.
With that said, here is the Growth Stock Portfolio: 12 Stock Picks By Warren Buffett.
Methodology:
For this article, we scanned Warren Buffett’s Q4 2024 portfolio. We then chose 12 stocks with the highest 5-year average revenue growth (YoY) and ranked accordingly.
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).
12. Visa Inc. (NYSE:V)
5-year average revenue growth (YoY): 9.77%
Visa Inc. (NYSE:V), the world’s largest payment processor, handled almost $15 trillion in total volume during fiscal 2023. It accepts transactions in over 160 currencies and operates in over 200 countries. Its systems are capable of processing over 65,000 transactions per second.
In the quarter that concluded on December 31, 2024, Visa Inc. (NYSE:V) handled 63.8 billion transactions, representing an 11% growth from the previous year. Furthermore, compared to the same time last year, the number of payments rose by 9% on a constant-dollar basis.
The company has been a market leader for a long time and continues to have promising growth potential. Visa Inc. (NYSE:V)’s place in the global electronic payment infrastructure is virtually unchallengeable, even in light of the payment industry’s continuous innovation.
Visa Inc. (NYSE:V) has seen a relatively consistent track in recent quarters, as growth has leveled out and one-time effects have faded. 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 company continues to benefit from a stable environment and favorable long-term secular growth prospects.
Visa Inc. (NYSE:V) had more than $16 billion in cash and cash equivalents at the end of the quarter, indicating a strong financial position. Over the same quarter last year, operating cash flow climbed to $5.4 billion from $3.6 billion. Furthermore, the company paid out $5.1 billion in dividends and share repurchases to its stockholders. As of February 14, it has a dividend yield of 0.67% and pays a quarterly dividend of $0.59 per share. For the past 16 years, the company has rewarded investors with rising dividends.
11. Chevron Corporation (NYSE:CVX)
5-year average revenue growth (YoY): 10.33%
Chevron Corporation (NYSE:CVX) is a global energy business that conducts operations in exploration, production, and refining. It is the second-largest oil company in the United States, producing 3.1 million barrels of oil equivalent per day, which includes 7.7 million cubic feet of natural gas and 1.8 million barrels of liquids per day. Production occurs throughout Europe, Africa, Asia, Australia, and South and North America.
Chevron Corporation (NYSE:CVX) recently announced a collaboration aimed at developing scalable power solutions based on natural gas-fired turbines, including carbon capture and storage, to meet the expanding energy demands of US data centers. Furthermore, the business successfully began gas production from the Sanha Lean Gas Connection project, ensuring a consistent natural gas supply for the Angola Liquefied Natural Gas facility. CVX has risen by more than 6% since the beginning of 2025, making it one of the stocks in Warren Buffett’s Growth Stock Portfolio.
Chevron Corporation (NYSE:CVX) outperformed expectations in 2024, breaking records. Global output jumped by 7%, while output in the United States grew by a staggering 19%, reaching record levels. Looking ahead to 2025, growth will likely continue, aided by the full-year benefit of the PDC Energy acquisition, which closed in August 2023. Its overall performance was further reinforced by the introduction of important projects in the Gulf of Mexico and ongoing expansion in the Permian Basin, where output climbed by 18%.
Warren Buffett’s Berkshire Hathaway was the largest stakeholder in the company from 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.
10. Chubb Limited (NYSE:CB)
5-year average revenue growth (YoY): 10.35%
Chubb Limited (NYSE:CB) ranks tenth on our list of Warren Buffett’s Growth Stock Portfolio. The global insurance firm provides various insurance products, including reinsurance, life insurance, and property and casualty insurance.
Chubb Limited (NYSE:CB) has shown consistent growth over time. Between 2016 and 2023, the company’s sales expanded at a compound annual growth rate (CAGR) of 7%, while earnings per share surged at a CAGR of 14%. This steady expansion continued despite hurdles such as the pandemic, geopolitical tensions, inflation, and rising interest rates, which impacted the overall economy. A crucial component of this resiliency is that most consumers are unwilling to cancel their insurance coverage simply to save money. While economic downturns may temporarily constrain pricing power, major insurers are usually able to cope with such short-term difficulties.
However, Chubb Limited (NYSE:CB) is facing a setback due to recent wildfire losses, which are estimated to cut free cash flow by $1.5 billion. However, it has a proven track record of dealing with major losses, like those caused by Hurricanes Ian and Milton, showing its capacity to manage such situations efficiently.
Meyer Shields, an analyst at Keefe Bruyette, boosted the price objective for Chubb Limited (NYSE:CB) to $329 from $328 and maintained an Outperform rating on the shares.
9. Louisiana-Pacific Corporation (NYSE:LPX)
5-year average revenue growth (YoY): 10.91%
Warren Buffett’s Growth Stock Portfolio includes Louisiana-Pacific Corporation’s (NYSE:LPX). It produces engineered wood siding for use in home building, repair, and remodeling projects in addition to its primary product, oriented strand boards. Although the company has built capacity in Brazil and Chile, it is primarily exposed to the housing industry in North America.
Louisiana-Pacific Corporation (NYSE:LPX) reported a 1% drop in net sales for the third quarter of 2024 as a result of shifting market conditions. On the other hand, siding revenue increased by $76 million, or 22%, due to a 15% increase in volume and a 6% increase in prices. The business is dedicated to adjusting and exhibiting resilience in the face of market constraints.
During the quarter, Louisiana-Pacific Corporation (NYSE:LPX) produced $184 million in operational cash flow and $153 million in EBITDA. During the third quarter, the company returned $91 million to shareholders through dividends and share repurchases while strategically investing $44 million in capital expenditures. Louisiana-Pacific Corporation (NYSE:LPX) had a healthy balance sheet and around $900 million in liquidity as of September 30, 2024. LPX is an attractive investment opportunity in the land and timber industry because of the company’s focus on providing value to shareholders while making strategic investments in expansion plans.
8. Mastercard Incorporated (NYSE:MA)
5-year average revenue growth (YoY): 11.22%
The American credit card firm Mastercard Incorporated (NYSE:MA), which is among Warren Buffett’s Growth Stock Portfolio, provides its customers with a variety of payment processing and related services. Since its initial public offering (IPO) in 2006, Mastercard has demonstrated an impressive total return CAGR of 29.9%, making it one of the best investments throughout the years. This type of performance shows the company’s resilience and the longevity of its business strategy, which is shielded from external competition and inflation.
Raymond James maintained its Outperform rating on the stock and increased its price target from $614 to $640 after the firm reported solid earnings in the fourth quarter of 2024. The company underlined Mastercard Incorporated (NYSE:MA)’s steady performance and pointed out that although preliminary estimates might be lower, this is mostly because of fluctuations in foreign exchange rates and operating expenses associated with transactions.
Mastercard Incorporated (NYSE:MA) made $7.5 billion in revenue in the fourth quarter of 2024, a 14% increase over the same period the previous year. The company’s net income increased from $3 billion to $3.5 billion during the quarter. Customers had received 3.5 billion Mastercard and Maestro-branded cards by December 31, 2024.
At the conclusion of the quarter, Mastercard Incorporated (NYSE:MA) had more than $8.4 billion in cash and cash equivalents, while its total assets exceeded $19.7 billion. The company’s operating cash flow increased from $12 billion in fiscal year 2023 to $14.7 billion in fiscal year 2024. This financial strength enabled them to return $2.4 billion to shareholders in dividends throughout the year. It has raised dividends for 13 years in a row.
7. Occidental Petroleum Corporation (NYSE:OXY)
5-year average revenue growth (YoY): 11.94%
Occidental Petroleum Corporation (NYSE:OXY) is among the biggest independent producers of gas and oil in the world. Its upstream activities are spread throughout North Africa, the Middle East, and the US. The company claimed to have net proven reserves of around 4 billion barrels of oil equivalent at the end of 2023. In 2023, net production reached 1,234 thousand barrels of oil equivalent per day on average, with around 50% of the output coming from natural gas and 50% from oil and gas liquids.
One of the biggest producers of oil and gas (O&G) in the US, Occidental Petroleum Corporation (NYSE:OXY) also runs subsidiaries in the chemical and renewable energy industries. It owns a majority equity stake in Western Midstream and operates a consolidated midstream business that offers gathering, processing, and transport services to the upstream segment. The portfolio also consists of a chemical company that manufactures PVC and caustic soda. The latter segment’s profitability is dependent on the health of the overall economy, although it enjoys lower energy and ethylene costs.
By making significant investments in carbon capture technology, the company has positioned itself as a progressive leader in the energy sector, supporting the objectives of the global energy transition. The company’s excellent cash flow, prudent management, and strategic approach position it for future growth, even though an immediate increase in oil prices may not be anticipated. Despite market volatility, Occidental Petroleum Corporation (NYSE:OXY) is a great possibility for long-term investors because it provides an appealing risk-reward ratio at its current value.
Furthermore, Occidental Petroleum Corporation (NYSE:OXY) is an excellent choice for investors due to its dividend policy. For the past 45 years, the business has been paying dividends to stockholders on a regular basis.
6. Pool Corporation (NASDAQ:POOL)
5-year average revenue growth (YoY): 13.08%
After the spike in demand in 2020 and 2021, Pool Corporation (NASDAQ:POOL) is currently negotiating a transitional phase. One of the biggest distributors of pool equipment and supplies in the United States and Europe had a sharp increase in demand during the pandemic; in 2021, the number of new pools built reached a peak of 117,000. New pool construction has, however, been progressively declining since that peak, with estimates for 2024 showing a nearly 20% fall in new projects. Its business has suffered due to this change; rolling twelve-month EBITDA margins have decreased from a peak in 2022 to 12.8% now, and quarterly sales growth has been negative since Q1 2023.
Pool Corporation (NASDAQ:POOL)’s long-term fundamentals are still strong despite these difficulties. The company’s maintenance and renovation products, a recurrent and strong category driven by the expanding installed base of pools that require continuous care, account for 86% of its revenues. New construction supplies constitute a smaller and more volatile part of the industry, making up only 14% of total revenues. According to the firm’s management, the company will eventually be able to resume positive sales and margin development as the pandemic-induced demand surge’s aftereffects fade. The pool supply area is expected to expand steadily at a rate of 4% to 6% per year over the long run, with the company in a strong position to surpass the competition through smart acquisitions and market share increases.
Pool Corporation (NASDAQ:POOL) shares outperformed despite a challenging demand environment for new pool construction. Particularly in the retail area, the company is doing well and gaining market share. In general, the company doesn’t let market conditions stop it from investing in technology, capacity, and capabilities. This strategy helped them emerge from the previous housing crisis in a very good position.
Despite short-term difficulties, Pool Corporation (NASDAQ:POOL) is well-positioned for long-term growth due to its strong market position, recurring revenue model, and industry tailwinds.
5. T-Mobile US Inc. (NASDAQ:TMUS)
5-year average revenue growth (YoY): 14.24%
Warren Buffett’s Growth Stock Portfolio includes the wireless network provider T-Mobile US, Inc. (NASDAQ:TMUS), which is situated in Washington. The company has performed exceptionally well this year, rising by over 20% in 2025 so far. Its focus on expansion and strategy of setting itself apart from rivals by establishing itself as the “un-carrier” brand has made it a desirable telecom stock in recent years.
In an advertisement during the February 9 Super Bowl, T-Mobile US, Inc. (NASDAQ:TMUS) announced the introduction of T-Mobile Starlink, a satellite-based mobile service created in collaboration with Starlink that is currently in public beta. In areas of the United States where conventional cell towers are not available, the service seeks to offer connections across 500,000 square miles. Text messaging will be supported at first, while voice calls and data will be added later.
T-Mobile US, Inc. (NASDAQ:TMUS) continued to dominate the US wireless market in the fourth quarter, gaining 903,000 net postpaid phone users and generating a 5.5% annual increase in service revenue. According to management, growth will continue at a similar rate, with 5.5 million to 6.0 million new postpaid customers anticipated by 2025.
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 4.35 million shares worth $960.18 million as of Q4.
4. HEICO Corporation (NYSE:HEI)
5-year average revenue growth (YoY): 14.43%
Warren Buffett’s Growth Stock Portfolio includes HEICO Corporation (NYSE:HEI), which is a supplier to the aerospace and defense industries that specializes in producing specialized replacement parts for commercial aircraft and defense product components. It is divided into two parts: the flight support group (FSG) and the electronic technologies group (ETG), which provide varying degrees of support to the defense and aerospace industries. The company consistently pursues acquisitions, concentrating on businesses in related or nearby industries that have significant cash flow and promising future growth.
HEICO Corporation (NYSE:HEI)’s ability to supply components for aircraft and systems at later phases of their service life is often limited by long-term service contracts with engine OEMs or lease agreements designed to preserve the aircraft’s resale value, which is why the majority of operators of newer aircraft continue to use OEM parts.
HEICO Corporation (NYSE:HEI) is also acknowledged as a key player in the space industry, having supplied vital mission components for India’s Chandrayaan-3 spacecraft, which landed on the Moon in 2023.
HEICO Corporation (NYSE:HEI) released strong results for the full year 2024 on December 17. The company’s net income increased 27% yearly to a record $514.1 million. The firm also announced a semiannual cash dividend of 11 cents per share. This was HEICO’s 93rd consecutive semiannual cash dividend since 1979, showing the company’s steadfast dedication to shareholder returns.
3. Liberty Media Corporation (NASDAQ:FWONK)
5-year average revenue growth (YoY): 17.14%
Formula One (F1) is a major international motorsport organization that owns the commercial rights to the Formula One World Championship, an annual series of motor races that spans approximately nine months. Liberty Media Corporation (NASDAQ:FWONK) primarily operates through its Formula One (F1) group, which focuses on motorsports and entertainment.
According to management’s fiscal third quarter figures for 2024, the current Formula One season is extremely competitive, with the championships for both manufacturers and drivers coming to an end. F1 has done well financially, as seen by a 15% increase in revenues and a 21% increase in adjusted operating income before depreciation and amortization (OIBDA) so far this year. Two more races this season, new collaborations, and enhancements to F1 TV and hospitality services are all responsible for the income growth. Notably, to increase its market presence and global sponsorships, Liberty Media Corporation (NASDAQ:FWONK) has inked new business contracts with firms like American Express and LVMH.
F1’s Term Loan B has been refinanced by Liberty Media Corporation (NASDAQ:FWONK), which has extended loan maturities and decreased interest margins to increase financial flexibility. The fact that a sizable amount of F1’s debt is at fixed rates offers stability against changes in interest rates.
TD Cowen maintained its buy rating on Liberty Media Corporation (NASDAQ:FWONK) shares and increased their price target from $81 to $88. Given past patterns and unique market circumstances, the company believes the European Commission will likely approve the MotoGP acquisition, and they anticipate that predictions for 2025 will rise.
Cooper Investors Global Equities Fund stated the following regarding Formula One Group (NASDAQ:FWONK) in its Q4 2024 investor letter:
“The largest contributors to returns were Booking Holdings (BKNG) and Formula One Group (NASDAQ:FWONK). FWONK is the owner the Formula One, the oldest and most prestigious global motor racing competition. As described in our September Quarterly Letter with our commentary on TKO Holdings, we are attracted to Sports Content assets FWONK’s operating trends continue to be strong on the track and with fan engagement, this is driving incremental monetisation. including the announcement in October of LVMH signing a 10-year global partner agreement, outbidding legacy sponsor Rolex. We continue to see significant value latency in FWONK, including improved monetisation across their key value drivers (Media Rights, Race Promotion and Commercial), the recent acquisition of MotoGP, and the enhanced strategic value from the impending spin-off of Liberty Live Group, which will result in FWONK converting from a tracking stock to an asset backed company.”
2. Amazon.com Inc. (NASDAQ:AMZN)
5-year average revenue growth (YoY): 19.70%
Warren Buffett’s Growth Stock Portfolio includes Amazon.com, Inc. (NASDAQ:AMZN), which dominates the markets it serves, particularly in the areas of cloud computing and e-commerce. It has many advantages over its competitors and has become the undisputed leader in e-commerce because of its size and scope, which provide customers with an unparalleled assortment of affordable products. The company is still gaining market share in spite of its size, showing the ongoing secular trend toward e-commerce. In addition to providing a consistent flow of high-margin recurring revenue from consumers who make more frequent purchases from the firm’s properties, Prime unifies Amazon’s e-commerce initiatives. Customers receive unique video content, one-day shipping on millions of items, and other benefits in exchange, creating a strong positive feedback loop where buyers and sellers are drawn to each other. The ecosystem is further strengthened by the Kindle and other gadgets, which help draw in new clients while attracting current ones with their value offer.
Operating cash flow for the trailing twelve months of fiscal year 2024 was $115.9 billion, a 36% increase from $84.9 billion for the same period last year which ended in December. Amazon.com, Inc. (NASDAQ:AMZN) declared in February that it will spend more than $100 billion on capital expenditures (CapEx) this year, with a major emphasis on advances in artificial intelligence (AI). This choice was made despite the rise of DeepSeek, a Chinese AI startup known for generating extremely efficient and cost-effective AI models that have sparked the IT industry. Amazon devotes a significant amount of its capital expenditures to AI development through AWS, or Amazon Web Services, which necessitates initial investments in hardware and data centers to support the platform’s rapid expansion.
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.”
1. Nu Holdings Ltd. (NYSE:NU)
5-year average revenue growth (YoY): 103.36%
Warren Buffett’s Growth Stock Portfolio includes Nu Holdings Ltd. (NYSE:NU). The business of the firm is offering online banking services. It provides several financial services, including business accounts, rewards, investments, personal loans, credit cards, insurance, and mobile payments. The company’s primary source of revenue is Brazil.
In the third quarter of 2024, Nu Holdings Ltd. (NYSE:NU)’s revenues surged by 56% year on year on an FX-neutral basis, establishing a new record of $2.9 billion. The firm doubled its customer base in the last year, reaching 10 million in January, five years after its Mexican launch. Nearly 12% of Mexico’s adult population is currently impacted by its expanded offers since its introduction, which now include a credit card, a debit card, a savings account with Cajitas (Money Boxes), and personal loans. The company said in the same month that NuCel, which was introduced in October of last year, had grown its clientele. Soon, Brazilian users will be able to purchase the product, receive notifications, and digitally transfer their numbers through the NuCel tab of the Nu app.
As the company tackles major issues that banking consumers in the area encounter, such as exorbitant fees, subpar customer service, and restricted access to financial goods, investors continue to have faith in Nu Holdings Ltd. (NYSE:NU) growth possibilities. They believe it will continue to increase its market share in the huge and expanding Latin American market due to its exceptional product offering.
Overall, NU ranks first on our list of the Growth Stock Portfolio: 12 Stock Picks By Warren Buffett. While we acknowledge the potential for NU 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 timeframe. If you are looking for an AI stock that is more promising than NU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. Growth Stock Portfolio: 12 Stock Picks By Warren Buffett is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
