In this article, we will take a look at the 12 Best Stocks to Invest In for Good Returns.
Wall Street experienced gains during the July 9 session. The S&P 500 and Dow Jones Industrial Average posted their first positive sessions in days, with increases of 0.6% and 0.5%, respectively. Over the past six months, both indices have soared over 6% and 7.40%, respectively. This indicates the market is showing strong signals following Trump’s tariff saga.
The Fed just released the June 17-18 meeting minutes. The policymakers largely held a wait-and-see position on future rate moves. The Fed members unanimously voted to hold the central bank’s key borrowing rate between 4.25% and 4.50%, the rate since December 2024.
The Fed meeting minutes also showed a growing divide over how policy should proceed.
“Most participants assessed that some reduction in the target range for the federal funds rate this year would likely be appropriate,” the minutes said.
Fed Governors Michelle Bowman and Christopher Waller have gone on record saying that the rates could go down as soon as the July 29-30 Fed meeting if inflation stays under control.
Warren Buffett’s Take on the Market
Warren Buffett’s Berkshire Hathaway portfolio has been a beacon for value investors, and if you are looking for stocks with good returns, Buffett’s portfolio could be a perfect pick. Buffett’s growth stock portfolio is a great choice for value investors seeking high-quality businesses with long-term competitive advantages and good returns. Since taking over as CEO of Berkshire Hathaway six decades ago, the veteran investor named “Oracle of Omaha” has outperformed the broader market, yielding over 20% compounded annual returns over multiple decades.
Warren Buffett has been a net seller for 10 consecutive quarters, growing Berkshire Hathaway’s cash pile to a record $347 billion. Buffett’s recent moves have been cautious, considering the uncertainty in the market and recessionary fears. Buffett’s long-term holding policy is considered a benchmark for long-term performance in hedge fund-style investing.
“Some people should not own stocks at all because they just get too upset with price fluctuations,” Buffett said in April 2025 during CNBC’s Becky Quick. “If you’re going to do dumb things because a stock goes down, you shouldn’t own a stock at all,” highlighting the major market crashes in the first half of 2025. During these uncertain times, the 11 best-performing Warren Buffett stocks in 2025 have returned over 20% on average, as of June 24.
With these trends in view, let’s take a look at the 12 Best Stocks to Invest in for Good Returns.
Our Methodology
To compile the list of the 12 Best Stocks to Invest in for Good Returns, we searched through Warren Buffett’s Berkshire Hathaway’s top 20 stock holdings as of Q1 2025. We have ranked the best stocks to invest in for good returns in ascending order of the analyst upside. We have highlighted the 5-year stock returns and the number of hedge funds holding stakes in these stocks. The data for hedge funds is taken from Insider Monkey’s Hedge Fund database, updated as of Q1 2025. Please note that the data was collected on July 9.
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 Best Stocks to Invest in for Good Returns
12. Chevron Corporation (NYSE:CVX)
Berkshire Hathaway’s Stake: 7.67%
5-Year Returns: 70.78%
No. of Hedge Fund Holders: 81
Analyst Upside: 8%
Chevron Corporation (NYSE:CVX) is one of the 12 Best Stocks to Invest in for Good Returns. On July 7, Barclays raised its price target on Chevron Corporation (NYSE:CVX) from $152 to $156, keeping its Equal Weight rating on the stock.
Betty Jiang from Barclays increased the price target on CVX as the analyst remains constructive on the firm’s leverage to gas. Jiang sees reasons for long-term price support with an additional demand of over 20 billion cubic feet per day expected by 2030.
The analyst believes that Chevron will leverage the higher expected demand. Moreover, the analyst raised the gas estimates to $4.50 and $4.25 for 2026 and 2027, further adding to the growth of gas companies.
Chevron Corporation (NYSE:CVX) is an integrated energy company. The company produces crude oil and natural gas and manufactures related products.
11. Chubb Limited (NYSE:CB)
Berkshire Hathaway’s Stake: 3.16%
5-Year Returns: 120.12%
No. of Hedge Fund Holders: 55
Analyst Upside: 10.38%
Chubb Limited (NYSE:CB) is one of the 12 Best Stocks to Invest in for Good Returns. On June 25, Chubb Limited (NYSE:CB) revealed that it is launching a new engineering center in Bogotá, Colombia.
Chubb’s latest engineering center in Colombia joins the company’s existing centers in India, Mexico, and Greece. The engineering center is scheduled to open in October 2025, enhancing Chubb’s technological capabilities and customer experience.
“Bogotá offers a rich pool of engineering talent, supported by strong academic institutions and a vibrant tech ecosystem. By tapping into local talent and expertise, Chubb will further develop tailored products and services that meet the specific needs of our Latin American and North American clients, enabling our strategic growth,” said Gordon Mackechnie, Vice President, Chubb Group, Global Head of Technology.
Software development, data analytics, AI, and infrastructural development will be key focuses at the Bogotá center. The company will make new hires in software engineering, network and data center infrastructure, and network security.
Chubb Limited (NYSE:CB) is a Swiss-based holding company that offers various insurance and reinsurance products and services to clients globally.
