In this article, we will take a look at 12 Best Warren Buffett Stock Picks For Beginners.
Warren Buffett, one of the most renowned names in the world of finance, was inspired by two famous economists from the 1930s, Ben Graham and Philip Fisher. From Graham, Buffett learned the idea of a margin of safety, which means he seeks companies whose stocks are trading for less than what their assets are actually worth. He also picked up Graham’s belief that it is pointless to obsess over daily market ups and downs, since real success comes from holding investments for the long term. From Fisher, Buffett developed a strong focus on the quality of a company’s management. He realized that great leadership can make a significant difference in a business’s long-term value. Fisher also warned that over-diversifying could backfire, making it harder to properly monitor each investment. Buffett clearly follows this thinking, since his $267 billion portfolio is concentrated in just 38 stocks as of Q4 2024.
Warren Buffett’s investment strategy is a masterclass in disciplined and fundamentals-driven investing. His focus is on companies with durable competitive advantages, which he refers to as economic moats, combined with strong management and solid capital allocation. The Oracle of Omaha is against chasing trends. Instead, he looks for long-term value and buys only when a company is trading below its intrinsic worth. Buffett’s approach with the iPhone-maker is a great case in point. He was not just impressed by the hardware; he saw the value in its services ecosystem, like the App Store and iCloud, which generate consistent, high-margin revenue.
During the height of the 2008 financial crisis, the Berkshire billionaire shared a remark with investors that remains just as relevant in the current stock market landscape. He wrote:
“Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”
Buffett also emphasizes simplicity and efficiency. Despite his success as a stock picker, he recommends low-cost S&P index funds for most investors, believing they outperform most professionals over time. At its core, Buffett’s strategy is not flashy, and he offers a blueprint for sustainable wealth creation. This article presents the Warren Buffett stock picks that are especially suitable for new investors looking to build a strong portfolio.
Our Methodology
For this article, we explored Warren Buffett’s Q4 2024 portfolio, picking 12 stocks with the highest hedge fund sentiment. These stocks are backed by Wall Street hedge funds and the Oracle of Omaha himself. The stocks are ranked in ascending order based on the number of hedge fund holders as per Insider Monkey’s Q4 2024. We also included the value of Berkshire Hathaway’s stake in each company for further context.
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. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 70
Berkshire Hathaway’s Stake Value: $960,175,500
T-Mobile US, Inc. (NASDAQ:TMUS), a subsidiary of Deutsche Telekom AG, is a prominent player in the wireless space, offering voice, messaging, data, and high-speed internet across the United States, Puerto Rico, and the US Virgin Islands. On March 27, Benchmark reiterated a Buy rating on TMUS with a $275 price target. Analysts point to strong postpaid growth, market share gains in urban areas, and strategic expansion into business, government, and smaller markets as primary drivers. Despite broader economic softness and modest telecom sector growth, T-Mobile’s $299.7 billion market cap and 63.79% gross margin reinforce its leadership in the industry.
T-Mobile US, Inc. (NASDAQ:TMUS) outperformed both earnings and revenue estimates with an EPS of $2.58 and $20.89 billion in revenue in Q1 2025. Postpaid service revenue jumped 8% year-over-year, helped by record net additions and the launch of its nationwide 5G Advanced network. T-Mobile has set big goals for 2025, expecting 5.5 to 6 million postpaid net adds, core adjusted EBITDA between $33.2 billion and $33.7 billion, and free cash flow of up to $18 billion. The company is also budgeting around $9.5 billion for CapEx.
On February 6, T-Mobile US, Inc. (NASDAQ:TMUS) declared a $0.88 per share quarterly dividend. The dividend is distributable on June 12, to shareholders on record as of May 30. It is one of the top Warren Buffett stock picks for beginners.
According to Insider Monkey’s fourth quarter database, 70 hedge funds were bullish on T-Mobile US, Inc. (NASDAQ:TMUS), compared to 66 funds in the preceding quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital was a prominent stakeholder of the company, with nearly 2.5 million shares worth $550.5 million.
11. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 71
Berkshire Hathaway’s Stake Value: $44,996,539,653
American Express Company (NYSE:AXP) is a global payments player with four main segments – U.S. Consumer, Commercial, International Cards, and Global Merchant Services. AXP offers credit and charge cards, banking services, travel perks, loyalty programs, and merchant services.
On April 10, Keefe, Bruyette & Woods maintained an Outperform rating with a $360 price target on American Express Company (NYSE:AXP). Analysts flagged a tough environment with trade tensions hurting travel spend. Despite risks, AXP is seen as resilient, and recent share dips likely reflect softer consumer trends.
American Express Company (NYSE:AXP) completed its acquisition of Center on April 16, a software firm specializing in modern expense management for small and medium-sized businesses. The deal will allow AXP to combine Center’s technology with its corporate and small business card offerings, creating a streamlined, automated platform for managing expenses.
For Q1 2025, AXP raked in $17 billion in revenue, up 8% from last year adjusted for currency changes. Card Member spending kept growing too, up 6%, showing that the company’s premium customer base is holding steady even with all the macro noise. Credit losses dropped slightly to $1.2 billion as American Express Company (NYSE:AXP) released some reserves, and even though loan write-offs stayed at 2.1%, they remained well within the target range. The company is maintaining its full-year forecast of 8-10% revenue growth and earnings per share between $15 and $15.5.
According to Insider Monkey’s Q4 data, 71 hedge funds were bullish on American Express Company (NYSE:AXP), with Warren Buffett’s Berkshire holding a $45 billion stake.
10. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 81
Berkshire Hathaway’s Stake Value: $17,179,549,745
Chevron Corporation (NYSE:CVX), an American oil and gas giant, ranks 10th on our list of the best Warren Buffett stock picks for beginners. Buffett picked up CVX in the third quarter of 2020, initially buying over 44 million shares. Fast forward to Q4 2024, and the billionaire investor holds a whopping 118.6 million units of the energy stock.
On April 21, Chevron Corporation (NYSE:CVX) commenced production at Ballymore in the deepwater Gulf of America, tying three wells back to its existing Blind Faith platform instead of building new, which is a cost-saving play. Ballymore could produce 75,000 barrels a day and is part of Chevron’s bigger plan to hit 300,000 barrels a day from the Gulf by 2026. Ballymore holds an estimated 150 million barrels of recoverable resources and marks Chevron’s first development in the Gulf’s Norphlet trend. Chevron owns 60% of the project, while TotalEnergies holds 40%.
Chevron Corporation (NYSE:CVX) posted $3.2 billion in earnings for the fourth quarter of 2024, up from $2.3 billion a year ago, boosted by currency gains yet weighed down by severance and impairment costs. Adjusted earnings fell to $3.6 billion from $6.5 billion, mainly because of weaker margins and lower oil prices. Still, Chevron hit record oil production both globally and in the US, driven by strong growth in the Permian Basin. The company ended the year with about 9.8 billion barrels in reserves. Chevron also returned a record $27 billion to shareholders through dividends and stock buybacks and announced a 5% dividend increase heading into 2025.
According to Insider Monkey’s fourth quarter database, 81 hedge funds reported owning stakes in Chevron Corporation (NYSE:CVX). Ken Fisher’s Fisher Asset Management was a prominent stakeholder of the company, with nearly 20 million shares valued at $2.8 billion.
9. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 81
Berkshire Hathaway’s Stake Value: $24,904,000,000
Warren Buffett has been investing in The Coca-Cola Company (NYSE:KO) since 1988, making it one of the best Warren Buffett stock picks for beginners. On April 22, UBS analyst Peter Grom reaffirmed a Buy rating on KO with a price target of $73. UBS is expecting Coca-Cola’s Q1 earnings to come in at $0.71 per share, just a cent below the consensus. With its financial stability, 63 consecutive years of dividend increases, and a solid outlook, Coca-Cola remains a strong pick for investors.
On February 20, The Coca-Cola Company (NYSE:KO) approved a 5.2% increase in its quarterly dividend, raising it from 48.5 cents to 51 cents per share. The first quarter dividend was paid on April 1, to shareholders listed by March 14. In 2024, Coca-Cola returned $8.4 billion in dividends, bringing the total dividends paid to shareholders since 2010 to $93.1 billion.
The Coca-Cola Company (NYSE:KO) net revenues for the fourth quarter rose 6%, reaching $11.5 billion, driven by a 14% jump in organic revenues. For the full year, revenues grew 3% to $47.1 billion, with organic growth at 12%. The company saw a 23.5% improvement in operating margin for the quarter, but a decline for the year to 21.2%, partly due to a $3.1 billion charge from the fairlife acquisition. EPS for the quarter grew 12% to $0.51. Cash flow from operations decreased to $6.8 billion, due to a large IRS deposit, but free cash flow excluding this deposit increased to $10.8 billion, reflecting strong business performance.
Among the hedge funds tracked by Insider Monkey in Q4 2024, The Coca-Cola Company (NYSE:KO) was part of 81 public stock portfolios, up from 69 in the preceding quarter. Ken Griffin’s Citadel Investment Group holds a prominent stake with 10 million shares worth $623.75 million.
8. Capital One Financial Corporation (NYSE:COF)
Number of Hedge Fund Holders: 89
Berkshire Hathaway’s Stake Value: $1,328,484,000
Capital One Financial Corporation (NYSE:COF) offers a wide range of financial products and services across the United States, Canada, and the United Kingdom. It operates through three main divisions – Credit Card, Consumer Banking, and Commercial Banking. COF is a relatively new addition to Warren Buffett’s holdings. The billionaire picked up the stock in the first quarter of 2023. He currently owns $1.3 million worth of COF shares.
On April 23, UBS analysts assigned a Buy rating and a $235 price target to Capital One Financial Corporation (NYSE:COF). According to the analysts, the company’s credit trends improved, card growth rose 4%, and delinquencies dropped. A slight revenue miss was tied to a lower net interest margin. UBS remains positive on the stock, highlighting the management’s clear outlook on cost synergies from the DFS integration.
Capital One Financial Corporation (NYSE:COF) reported on April 18 that it has officially received all the necessary approvals for the Discover merger, which is set to close on May 18, 2025. Leaders from both companies said the deal will boost competition, expand products and services, and bring big community investments through a $265 billion plan. For now, nothing will change for customers, and any future updates will be shared ahead of time.
Capital One Financial Corporation (NYSE:COF) reported $1.4 billion in net income for Q1 2025, with adjusted earnings reaching $4.06 per share. Revenue dipped 2% to $10 billion, while expenses fell 3% due to lower marketing costs. Loan balances dropped slightly, but deposits rose 1% to $367.5 billion. Liquidity reserves grew to $131 billion, and cash holdings increased by $5 billion to $49 billion for the first quarter, supported by retail deposit growth and seasonal card balance paydowns.
According to Insider Monkey’s data, 89 hedge funds were backing Capital One Financial Corporation (NYSE:COF) at the end of Q4 2024. That, in addition to Berkshire holding a $1.3 billion stake in COF, makes it one of the best Warren Buffett stock picks for beginners.
7. Moody’s Corporation (NYSE:MCO)
Number of Hedge Fund Holders: 91
Berkshire Hathaway’s Stake Value: $11,677,932,812
Moody’s Corporation (NYSE:MCO) is a global risk assessment firm divided into two business segments – Moody’s Analytics and Moody’s Investors Service. Moody’s Analytics offers tools for financial risk management, while Moody’s Investors Service provides credit ratings and evaluations for corporate, government, and financial sector debt. It is one of the best Warren Buffett stock picks for beginners.
On April 23, Oppenheimer maintained an Outperform rating on Moody’s Corporation (NYSE:MCO) but slashed the price target to $489 from $523. Moody’s delivered strong quarterly results, driven by higher-than-expected Ratings revenue, but still lowered its 2025 forecast because of slower GDP growth and market worries. While Oppenheimer trimmed its estimates, it remains optimistic about Moody’s long-term future, pointing to steady demand for its credit rating services.
Moody’s Corporation (NYSE:MCO) reported a record Q1 2025 revenue of $1.9 billion, an 8% increase compared to the same period last year, driven by strong growth in both its Ratings and Analytics businesses. The company also announced an 11% hike in its quarterly dividend, raising it to $0.94 per share, payable in June. Moody’s cash flow from operations came in at $757 million, while free cash flow totaled $672 million, with the year-over-year decline mainly due to higher incentive compensation payouts. The company finished the first quarter with $6.8 billion in outstanding debt and maintained access to an undrawn $1.25 billion credit facility. Additionally, MCO repurchased 0.8 million shares at an average price of $481.77 and still has about $1.2 billion remaining under its current share repurchase authorization.
According to Insider Monkey’s fourth quarter database, 91 hedge funds held stakes in Moody’s Corporation (NYSE:MCO), up from 67 funds in the preceding quarter. Chris Hohn’s TCI Fund Management was a notable stakeholder of the company, with 13.2 million shares worth $6.2 billion.
6. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 101
Berkshire Hathaway’s Stake Value: $1,030,474,546
Citigroup Inc. (NYSE:C) is a global financial services company offering a wide range of services to consumers, businesses, and governments. The company operates through five main segments – Services, Markets, Banking, U.S. Personal Banking, and Wealth. It is one of the top Warren Buffett stock picks for beginners, with the billionaire holding a billion dollar stake in the company.
On April 16, Truist Securities maintained a Buy rating on Citigroup Inc. (NYSE:C) but trimmed the price target to $79 from $84. Truist has slightly lowered its 2025 earnings forecast for Citigroup, lowering it by $0.10 to $7.40 per share. The adjustment comes from softer revenue expectations and a more cautious outlook on credit losses. Revenue and expense projections are still in line with Citi’s updated guidance.
Citigroup Inc. (NYSE:C) reported a net income of $4.1 billion for Q1 2025, or $1.96 per diluted share, compared to $3.4 billion, or $1.58 per share, in Q1 2024. Revenue grew by 3%, driven by growth across Citi’s five business segments. The growth in net income was attributed to higher revenues and lower expenses, though it was partially offset by higher credit costs. Citigroup’s end-of-period loans reached $702.1 billion, up 4% from the previous year, driven by growth in Services, Markets, and Retail Banking. Deposits totaled $1.3 trillion, up 1% from the prior year, and the company returned $2.8 billion to shareholders during the quarter through dividends and share repurchases.
Among the hedge funds tracked by Insider Monkey, 101 funds were bullish on Citigroup Inc. (NYSE:C) at the end of Q4 2024, compared to 88 funds in the previous quarter.
5. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 112
Berkshire Hathaway’s Stake Value: $29,896,266,149
Bank of America Corporation (NYSE:BAC) provides financial products and services to individuals, businesses, investors, and governments. It operates across four key segments – Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets. BAC is one of the top holdings of Berkshire, with the hedge fund owning a stake worth nearly $30 billion.
On April 16, RBC Capital Markets maintained an Outperform rating on Bank of America Corporation (NYSE:BAC) but cut the price target to $45 from $50. RBC Capital revised its outlook for Bank of America, adopting a cautious stance due to economic uncertainties but maintaining confidence in the bank’s strong fundamentals. Despite a 10% stock decline, the bank’s diversified model, deposit growth, and low-cost deposit base are expected to drive long-term earnings.
Bank of America Corporation (NYSE:BAC) on April 23 announced a quarterly dividend of $0.26 per share. The dividend is payable on June 27, to shareholders listed by June 6. Additionally, a dividend of $1.75 per share on its 7% Cumulative Redeemable Preferred Stock (Series B) will be paid on July 25, to shareholders on record as of July 11.
According to Insider Monkey’s fourth quarter database, 112 hedge funds held long positions in Bank of America Corporation (NYSE:BAC), compared to 98 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management was among the largest stakeholders of the company, with 46.8 million shares valued at $2 billion.
4. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 151
Berkshire Hathaway’s Stake Value: $2,099,249,237
Mastercard Incorporated (NYSE:MA), a global payments technology company, is one of the top Warren Buffett stock picks for beginners. Buffett has held on to his MA stake consistently since 2011. On February 13, 2025, Tigress Financial reiterated a Strong Buy rating on the stock and raised the price target to $685. The investment firm appreciated the company’s 14% YoY revenue growth in Q4 2024, reaching $7.49 billion, driven by its payment network and value-added services. The company’s focus on AI and innovations like Mastercard One Credential supports future growth.
On February 10, Mastercard Incorporated (NYSE:MA) announced a quarterly dividend of 76 cents per share, which will be distributed on May 9, to shareholders on record as of April 9. The company has paid dividends regularly since 2007.
Mastercard Incorporated (NYSE:MA) announced a partnership with MoneyGram on April 2, with the companies aiming to make money transfers faster and easier, both within the United States and across borders. With Mastercard Move, MoneyGram users can send funds nearly instantly to 38 countries, with more to come in 2025.
According to Insider Monkey’s fourth quarter database, 151 hedge funds reported owning stakes in Mastercard Incorporated (NYSE:MA), compared to 131 in the prior quarter. Charles Akre’s Akre Capital Management was one of the top shareholders of the company, with 3.70 million shares worth $1.95 billion.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Berkshire Hathaway’s Stake Value: $75,126,000,000
Apple Inc. (NASDAQ:AAPL) remains one of Warren Buffett’s favorite investments. He initially bought 39.2 million shares in the first quarter of 2016 and has steadily increased his stake since then. As of the fourth quarter of 2024, Berkshire Hathaway’s holdings in Apple were valued at over $75 billion. It is one of the best Warren Buffett stock picks for beginners.
On April 28, Morgan Stanley kept an Overweight rating on Apple Inc. (NASDAQ:AAPL) with a price target of $235, up from $220. Morgan Stanley expects the stock to stay stable short term, and sees long-term growth driven by strong cash flow and Services growth. Morgan Stanley is confident in Apple’s financial strength despite near-term uncertainties.
Apple Inc. (NASDAQ:AAPL) announced its biggest American investment yet on February 24, which is a $500 billion commitment over the next four years. The company plans to pour money into areas like AI, silicon engineering, advanced manufacturing, and job training across the country. Part of the plan includes doubling its US Advanced Manufacturing Fund to $10 billion, building a new server facility in Houston, expanding data centers in multiple states, and boosting chip production with Taiwan Semiconductor in Arizona.
According to Insider Monkey’s fourth quarter database, 166 hedge funds were bullish on Apple Inc. (NASDAQ:AAPL), compared to 158 funds in the last quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital was a prominent stakeholder of the company, with 26.6 million shares valued at $6.6 billion.
2. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 181
Berkshire Hathaway’s Stake Value: $2,622,329,258
Visa Inc. (NYSE:V) is a global fintech company that ranks 2nd on our list of the top Warren Buffett stock picks for beginners. On February 21, Keefe, Bruyette & Woods reiterated an Outperform rating on Visa with a $400 price target. Analysts observed that even with a maturing card market, Visa’s focus on innovation, global expansion, and stronger client relationships is expected to keep its revenue growing at a double-digit pace.
On March 3, Visa Inc. (NYSE:V) announced that its Tap to Phone technology, which allows smartphones to process payments, has grown 200% over the past year, helping millions of small businesses accept contactless payments. It is gaining traction in the US, UK, and Brazil, making payment processing easier and more efficient for business owners. Visa is expanding this technology with new features like Tap to Add Card and Tap to Send, making payments simpler and more secure for everyone.
For Q1 FY2025, Visa Inc. (NYSE:V) reported a 5% increase in GAAP net income, reaching $5.1 billion, and a 10% rise in revenue, which came in at $9.5 billion. This growth was fueled by strong performance in payments volume, cross-border transactions, and processed transactions. Payment volume grew 9%, while cross-border transactions surged by 16%. Service revenue and data processing revenue were also up by 8% and 9%, respectively. Visa’s cash and investments totaled $16.1 billion by the end of the quarter.
According to Insider Monkey’s fourth quarter database, 181 hedge funds were bullish on Visa Inc. (NYSE:V), compared to 165 funds in the prior quarter. Chris Hohn’s TCI Fund Management was the biggest stakeholder of the company, with 16.8 million shares valued at $5.30 billion.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
Berkshire Hathaway’s Stake Value: $2,193,900,000
Warren Buffett picked up Amazon.com, Inc. (NASDAQ:AMZN) shares in the first quarter of 2019, and as of Q4 2024, Berkshire holds 10 million units of the stock. On April 24, a team of analysts at Citi, led by Ronald Josey, maintained a Buy rating on Amazon with a price target of $225. Ahead of Q1 2025 earnings on May 1, analysts expect results to meet or slightly exceed expectations. However, the bigger focus is on how the company will perform later in the year, especially with challenges like tariffs, China exposure, and demand for AWS.
On April 24, AWS and Nasdaq announced a collaboration to launch new tools that help modernize markets around the world. Their goal is to facilitate market operators in boosting liquidity, managing capital, and growth while maintaining tight security and performance. This partnership aims to strengthen financial systems, make global investing smoother, and support long-term economic growth.
Similarly, London Stock Exchange Group (LSEG) announced an extension of its partnership with Amazon Web Services on April 28, making AWS the preferred cloud provider for its Markets, Risk Intelligence, and FTSE Russell divisions. The move will help LSEG improve security, resilience, and speed up the launch of new services. By using tools like Amazon Bedrock, LSEG plans to deliver faster, more accurate risk analysis, while AWS Outposts will help power scalable market services.
According to Insider Monkey’s fourth quarter database, 339 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), compared to 286 funds in the preceding quarter. Boykin Curry’s Eagle Capital Management was the biggest stakeholder of the company, with 12.76 million shares valued at $2.80 billion.
Overall, AMZN ranks first among the 12 Best Warren Buffett Stock Picks For Beginners. While we acknowledge the potential of Warren Buffett’s stock picks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. 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.
