10 Best Stocks to Buy Now According to Warren Buffett

In this article, we will discuss the 10 Best Stocks to Buy Now According to Warren Buffett.

Warren Buffett stepped down as CEO of Berkshire on December 31 last year. The Oracle of Omaha in his six decades at the helm delivered a legendary compounded annual return of approximately 19.8%, compared with about 10.4% average of the S&P 500. In the fourth quarter, Berkshire was a net seller of stocks as it unloaded about $3.2 billion worth of shares. As of the end of the period, the firm’s cash pile stood at about $373 billion.

Berkshire’s new CEO Greg Abel in his first letter to investors said the firm plans to use this massive cash pile as “dry powder” to pile into opportunities as they arrive.

“There will undoubtedly be incremental opportunities to deploy our owners’ capital without compromising Berkshire’s resilience,” Abel wrote. “My role is to ensure our liquidity levels and capital deployment remain intentional and deliberate. We will always aim for ownership of productive businesses over U.S. Treasuries.”

Abel in his letter said he plans to stick to the foundational values that built the company while shifting the focus toward operational stewardship. He said his primary goal is to serve as the Chief Risk Officer and make sure the company remains a financial fortress regardless of market conditions. Instead of trying to match Warren Buffett’s stock-picking skill—an almost impossible task— Abel aims to drive operational excellence across the many businesses Berkshire already owns.

The three-month period ending December was the last quarter of Buffett as the firm’s chief stock picker. Let’s see what he was piling into ahead of 2026.

For this article, we scanned Berkshire’s portfolio and picked its 10 biggest holdings as of the fourth quarter. 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

Best Stocks to Buy Now According to Warren Buffett

10. Alphabet Inc. (NASDAQ:GOOGL)

Berkshire’s Stake Value: $5.59 Billion

Alphabet Inc. (NASDAQ:GOOGL) rapid shift from a search-first company to an AI powerhouse has been remarkable. Alphabet Inc.  was quick to go all-in on its Gemini AI product and the results are already visible. Gemini Enterprise has reached 8 million seats. With a $30 per user/month price, it translates to a roughly $2.8 billion annual revenue run rate from a product that essentially didn’t exist two years ago.

While AI engines are impacting Alphabet Inc. search/ads business, analysts believe it can offset those declines with agentic commerce and AI native ads in Gemini. Gemini crossed 750 million MAUs in early 2026, up from roughly 450 million a year prior.

Google Cloud is fast becoming a viable income stream that could offset the major transition Alphabet Inc. search business is seeing. In the recently reported quarter, Google Cloud revenue rose 48% year over year to hit a $70 billion annual run rate in 2026. About 75% of Google Cloud customers now use Gemini-powered tools.

GOOG shares are up 90% over the past 12 months. The stock’s forward P/E of 27–29x is still in line with its 10-year historical average and lower than major tech stocks like Microsoft and Amazon, while maintaining faster-than-average cloud and AI growth. This makes GOOG one of the best stocks to buy for 2026 and beyond.

Jensen Quality Growth Equity Strategy stated the following regarding Alphabet Inc. in its fourth quarter 2025 investor letter:

“The leading individual contributors during the quarter were Eli Lilly (LLY) and Alphabet Inc. (NASDAQ:GOOGL). Alphabet was another key contributor in Q4 as the market placed greater weight on evidence that its AI strategy is strengthening – rather than threatening – its core franchises, while also improving the medium-term growth profile of Google Cloud. Investors responded to signs of steady advertising fundamentals (Search and YouTube) alongside continued cloud momentum, including better visibility from contracted demand and a clearer path to operating leverage as the business scales. The quarter reinforced Alphabet’s “quality growth” attributes: durable demand, scale advantages, and disciplined cost management that can support attractive earnings power even as the company invests aggressively.

We continue to view Alphabet as unusually well positioned across the AI stack – owning differentiated infrastructure, frontier models, and global distribution – allowing it to monetize AI through multiple channels (ad relevance, consumer features, and enterprise cloud). Near-term results may remain somewhat noisy given elevated capex and depreciation associated with data center and AI build-out, but the strategic logic is intact: fund long-duration opportunities from a highly cash-generative core. Ongoing regulatory scrutiny and competitive dynamics are real but appeared more “known” and less incremental during the quarter, enabling fundamentals and execution to drive the stock’s contribution.”

9. Kraft Heinz Co (NASDAQ:KHC)

Berkshire’s Stake Value: $7.90 Billion

Kraft Heinz Co (NASDAQ:KHC)  has been one of the losers in the Berkshire portfolio. The stock is down about 40% over the past five years. Berkshire Hathaway’s new CEO Greg Abel called the stock’s performance “disappointing” in a recent CNBC interview. He said Berkshire now plans to keep its stake in the company, dropping its earlier plan to sell after Kraft Heinz Co  proposed a split. The change came after Kraft paused the split.

Kraft Heinz Co  bull case has some ifs, buts and requires patience. The company plans a $600 million reinvestment plan to modernize its brands and regain market share. CEO Steve Cahillane plans to invest in marketing, R&D, and product quality to make the company’s brand stick with modern customers. Kraft Heinz Co  also expects to surpass $2.5 billion in gross efficiencies by the end of 2026.

While Abel didn’t sound too enthusiastic about Kraft Heinz Co  in the CNBC interview, he did praise the company’s plan not to split. Here is what he said:

“So, for Steve to come in and say we’re pausing it, there’s opportunities within Kraft Heinz to fix things and get the business back on track and then he’ll evaluate things — we thought that was absolutely the right approach.”

Longleaf Partners Fund stated the following regarding The Kraft Heinz Company in its fourth quarter 2025 investor letter:

“The Kraft Heinz Company (NASDAQ:KHC) – Global food and beverage producer Kraft was a detractor for 2025. The market is overly focused on the lack of near term growth in North America and not focusing enough on the value-creating potential of the company’s upcoming split into two businesses: the higher-growth Global Taste Elevation Co. which contains the Heinz brand and should garner a teens EBITDA multiple, and the stable remaining company comprised largely of North American grocery products, which can trade at the same multiple total Kraft currently trades today. This would result in a combined stock price over $40 per share. We are also extremely pleased with Steve Cahillane being named CEO. We got to know Steve during our successful investment in Kellanova / Kellogg’s, and we believe Steve is the perfect operator to lead Global Taste Elevation and help decide who should lead North American Grocery.”

8. Chubb Ltd (NYSE:CB)

Berkshire’s Stake Value: $10.69 Billion

How does Chubb Ltd (NYSE:CB) stand out among other insurance companies? The company focuses on high-net-worth and commercial clients, unlike competitors who rely on high-volume, low-margin business. Because of this high net worth moat, the company has pricing power.  When inflation spikes, it can easily raise premiums even faster than those costs increase. It ranks eighth in our list of the best stocks to buy according to Warren Buffett.

Chubb Ltd has a combined ratio – a key metric in the insurance industry – between 81% and 86%. What does that mean? It means Chubb Ltd keeps 15 to 19 cents of every dollar as pure profit before even touching its investment income. This significantly outperforms the industry average of 96%.

The London Company Large Cap Strategy stated the following regarding Chubb Limited in its fourth quarter 2025 investor letter:

“Chubb Limited (NYSE:CB) – CB was a strong performer in 4Q25, reaching an all-time high following exceptional earnings that featured record core operating income, industry-leading combined ratios, and robust investment income growth. The company’s diversified portfolio, disciplined underwriting, and aggressive capital returns reinforced confidence in its ability to generate attractive returns, even as the P&C industry transitions to a more competitive and volatile environment.”

7. Occidental Petroleum Corp (NYSE:OXY)

Berkshire’s Stake Value: $10.89 Billion

Berkshire owns about 29% of OXY and bought its chemicals business for $9.7 billion. This provides a strong vote of confidence for the company and strengthens the long-term bull case for the stock. But beyond the Berkshire angle, why should one buy Occidental Petroleum Corp (NYSE:OXY) stock?

Occidental Petroleum Corp is quickly transitioning away from a traditional oil producer to a carbon-removal giant. Its Direct Air Capture (DAC) facility, STRATOS, is set to start operations this year. The company already has high-margin carbon removal credit deals with major firms like Microsoft and BlackRock. Occidental Petroleum Corp can produce net-zero oil with higher profit margins and lower decline rates than its competitors. This provides it with a unique hedge against the global energy transition.

Mott Capital Management stated the following regarding Occidental Petroleum Corporation in its fourth quarter 2025 investor letter:

“I also made a rotational decision to purchase Occidental Petroleum Corporation (NYSE:OXY) at the start of 2026. The energy sector has underperformed in recent years, and I think oil prices are currently depressed. In fact, both Occidental and the energy sector haven’t performed this poorly versus the S&P 500 since the dot-com bubble. Additionally, oil appears to be the only commodity that is not performing well. Occidental seemed like a good way to play a rise in oil prices, given its tight relationship with the commodity. Additionally, it has a strong shareholder base, with Berkshire Hathaway owning more than 26% of the stock. On top of that, the five largest shareholders own a combined 51.6% of the shares, which means that most of the shares are “locked up,” and if buyers step into the name, there will be fewer shares available to buy, potentially adding to an advance.”

6. Moody’s Corp (NYSE:MCO)

Berkshire’s Stake Value: $12.60 Billion 

Moody’s Corp’s shares recently took a hit amid fears that AI could erode the company’s moat around proprietary data. However, Moody’s data moat is strong because it is auditable and backed by decades of reputation. Investors pay Moody’s Corp because they need a legal guarantee and an audit trail that an AI agent simply can’t provide. It ranks sixth in our list of the best stocks to buy according to Warren Buffett.

Moody’s Corp is using AI to expand its business.  It’s integrating AI directly into customer workflows via partnerships with Salesforce, ServiceNow, and Databricks. Moody’s Corp says customers who have upgraded to its GenAI solutions are being retained at a 97% rate and are growing their spending at twice the rate of traditional customers.

Qualivian Investment Partners stated the following regarding Moody’s Corporation in its third quarter 2025 investor letter:

“Our bottom 3 contributors in the quarter were Brown and Brown, Watsco, and Moody’s Corporation (NYSE:MCO). Moody’s (MCO) reported a very strong quarter with adjusted EPS of $3.92, beating expectations by nearly 7%, and record total revenue of $2.01 billion, up 11% year-over-year. Management delivered an impressive 500 bp improvement in adjusted operating margins to 53%, largely on the strength of strong issuance activity across its higher margin Moody’s Investor Service (MIS) segment.”

5. Chevron Corp (NYSE:CVX)

Berkshire’s Stake Value: $19.84 Billion 

Chevron Corp (NYSE:CVX)  could be one of the best oil stocks to buy for the long term amid the recent Middle East conflict. The company’s Hess acquisition has given it access to the Stabroek Block in Guyana, one of the most profitable offshore oil projects in history. With oil prices touching $100 per barrel, these low-cost assets could generate massive margins for Chevron Corp .

Chevron Corp’s assets in the Permian basin provide it with another growth engine. Unlike traditional deepwater projects, short-cycle shale projects are more suitable for volatile markets. Chevron Corp  produces 1 million barrels of oil equivalent per day from this region alone.

4. Coca Cola Co (NYSE:KO)

Berkshire’s Stake Value: $27.96 Billion

Coca Cola Co (NYSE:KO) has been a key part of Berkshire’s portfolio over the past several years as the Oracle of Omaha’s faith in the company remained unwavering. As of the end of the fourth quarter, Berkshire’s stake in Coca Cola Co was worth $27.96 billion.

Who better to make the bull case for Coke than Buffett himself?  Years ago, he explained in his letter to investors why Coke’s moat is solid, and that thesis remains valid to date. Buffett at the time (it was 1993) said Coka was like the “Barbie” of beverages because you can reliably predict that people will still want a Coke in 30 years. Buffett believed the long-term risk for stocks like Coke was significantly lower than that of a fast-moving technology company.

In his 2022 letter, Buffett said he expects Coca Cola Co’s dividend growth to hit like birthdays.

“The cash dividend we received from Coke in 1994 was $75 million. By 2022, the dividend had increased to $704 million. Growth occurred every year, just as certain as birthdays. All Charlie and I were required to do was cash Coke’s quarterly dividend checks. We expect that those checks are highly likely to grow.”

Coca Cola Co has increased its dividend for over 60 years without a break.

Carillon Eagle Growth & Income Fund stated the following regarding The Coca-Cola Company in its third quarter 2025 investor letter:

“The Coca-Cola Company (NYSE:KO) was a relative detractor in the third quarter. While second-quarter financial results exceeded analysts’ forecasts due to better pricing, we believe sluggish volume trends that decelerated as the second quarter progressed likely weighed on shares. We also attribute some of the weakness to softening sentiment for the broader beverage industry, reflecting market rotation into risk-on industries.”

3. Bank Of America Corp (NYSE:BAC)

Berkshire’s Stake Value: $28.45 Billion 

Bank Of America Corp (NYSE:BAC) ranks third in our list of the best stocks to buy now, according to Warren Buffett’s Berkshire Hathaway.

Bank Of America Corp is starting to benefit from balance sheet decisions made during the low-rate period of 2020–2021, when it gathered large deposits and invested heavily in long-term securities. While those investments weighed on earnings as rates rose, their gradual maturity is allowing the bank to reinvest at higher yields, providing a lift to net interest income.

The stock trades at an attractive P/E ratio of 10.5 based on 2027 estimates. For 2026, Bank Of America Corp expects NII growth of 5–7%, which is healthy given the fact that we are in a hold or cut cycle from the Federal Reserve.

2. American Express Co (NYSE:AXP)

Berkshire’s Stake Value: $56.09 Billion

Warren Buffett’s Berkshire has a $56.09 Billion stake in American Express Co (NYSE:AXP). The stock is down about 19% so far this year. A total of 83 hedge funds in Insider Monkey’s database had stakes in the company as of the end of the December quarter, up from 75 funds in the previous quarter.

Why are hedge funds interested in this stock that’s been a loser this year so far?

While other major banks panic over interest rate volatility, American Express Co is relying on secular, long-term growth catalysts deeply rooted in society: young Americans spending on lifestyle and travel.

Millennials and Gen Z make up a significant portion of U.S. consumer spending on the Amex network. American Express Co’s strengths come from younger consumers in their peak spending years. The average age of a new U.S. Platinum cardholder is 33, and for Gold, it’s 29. American Express Co exposure to interest rates is low compared with other banks. About 80% of Amex’s revenue comes from sources like merchant fees and annual card fees rather than interest income. It hit a record $10 billion in card-fee revenue in 2025.

American Express Co is also expected to benefit from a major wealth transfer. UBS estimates that about $83 trillion in assets could change hands globally over the next 20 to 25 years, including more than $74 trillion flowing to younger generations. Younger consumers spend more, and that bodes well for companies like American Express Co.

Bretton Fund stated the following regarding American Express Company in its fourth quarter 2025 investor letter:

“American Express Company (NYSE:AXP) cardholders keep swiping—or these days, tapping—their cards and paying their credit card statements on time. Despite increased competition in the high-net-worth segment, their Platinum Card remains a desirable product, with high fees but high rewards. Earnings per share increased 15%, and the stock returned 26%.”

1. Apple Inc. (NASDAQ:AAPL)

Berkshire’s Stake Value: $61.96 Billion 

Apple Inc. (NASDAQ:AAPL) remains the biggest holding of Berkshire despite the fund decreasing its stake in the iPhone maker over the past few quarters.

Wall Street was extremely skeptical of Apple Inc.’s AI strategy until concerns over increasing data center spending and ROI started popping holes in the AI hype, making the Cupertino giant’s approach look increasingly prudent. Apple Inc. spent just about $12.7 billion in CapEx last year, while major tech companies like Microsoft, Google, Meta and Amazon are expected to spend about $600 billion combined on AI infrastructure in 2026.

What about the concerns about declining iPhone sales? Earlier this year, Apple Inc. issued a higher-than-expected revenue growth guidance for the March quarter driven by a rebound in iPhone demand. But let’s face it: Analysts are now coming to terms with the reality that iPhone sales are unlikely to keep delivering strong growth as users may not upgrade as frequently.

Apple Inc. anticipated this shift and began diversifying into services and other higher-margin business segments. As of the fiscal Q1, Apple’s Services revenue reached an all-time record of $30 billion, accounting for about 21% of total revenue. Services gross margins are about 76%,  nearly double the 40.7% margin seen on physical products. With an installed base of 2.5 billion devices, Apple Inc. is positioned well to keep making money despite a potential plateau in iPhone sales.

YCG Investments stated the following regarding Apple Inc. in its fourth quarter 2025 investor letter:

“This playbook of buying more of what is cyclically not working has paid off many times in the past, with the most recent example being our trimming during the April tariff sell off of Verisk (a defensive name that was up year-to-date at the time) to buy Apple Inc. (NASDAQ:AAPL) Inc. (a great business in which we had long-term confidence that was down sharply on tariff fears). Fast forwarding to this past quarter, Apple was now up for the year while Verisk was down substantially. This reversal occurred despite, in our opinion, no significant change to their long-term prospects. Therefore, we took advantage of the volatility again, trimming Apple and buying more Verisk.”

While we acknowledge the potential of AAPL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AAPL and that has 100x upside potential, check out our report about the cheapest AI stock.

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