In this article, we will discuss the 13 Best Stocks to Invest in for Good Returns.
The risks stemming from the Iran war are likely to weigh on growth and drive inflation higher. According to BlackRock President Rob Kapito, growth could be hit by as much as 2% even if the conflicts end soon. Wall Street strategists are also warning against relying on President Donald Trump rescuing the markets after the recent sell-off.
The sentiments come as all the major US stocks are down for the year, a phenomenon not heard after years of blockbuster gains. While the Iran War has accelerated the equity market selloff, the US Federal Reserve’s refraining from raising interest rates has also added a layer of uncertainty. The Iran War is already threatening to deliver a new inflationary shock to the US economy.
“It goes back to the classic phrase about war, which is it has a momentum of its own once it starts,” said Bob Elliott, chief investment officer at New York-based investment firm Unlimited. “The ability to influence and respond to pain that exists in the markets isn’t necessarily as easy as it was during Liberation Day, where basically President Trump had full control over what the policy choices were.”
Nevertheless, RBC Capital Markets insists that investors should take note of historical precedents in which buying stocks after downturns often pays off. Similarly, Warren Buffett has always insisted on the need to be “Be fearful when others are greedy, and greedy when others are fearful.” It is a disciplined, value-driven approach to investing that entails taking advantage of deep pull-backs in the market.
On the other hand, Buffett has always warned against chasing hot tech trends and has focused on high-quality names trading at discounted levels. In addition, Berkshire Hathaway has nearly 20% of its $300 billion portfolio invested in companies that are leaders in their respective sectors and known for their track record in generating long-term value.
While taking a closer look at Berkshire Hathaway‘s investment portfolio, let’s take a look at some of the best stocks to invest in for good returns in the long term.
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Our Methodology
To compile the list of the best stocks to invest in for good returns, we searched through Warren Buffett Berkshire Hathaway’s Q4 2025 portfolio. We then settled on stocks with higher 5-year returns and the number of hedge funds that own them. We trimmed the list further by selecting stocks with upside potential of more than 15%. Finally, we ranked the stocks based on their upside potential. Hedge fund data comes from Insider Monkey’s database, updated for Q4 2025.
Note: Stock Upside Potential Data as of March 27.
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 Invest in for Good Returns
13. Nucor Corporation (NYSE:NUE)
Berkshire Hathaway’s Stake: $1,045,167,939
5-Year Return: 108.94%
Stock Upside Potential: 18.29%
Number of Hedge Fund Holders: 44
Nucor Corporation (NYSE:NUE) is one of the best stocks to invest in for good returns. On March 25, KeyBanc initiated coverage of Nucor Corporation (NYSE:NUE)) with a Sector Weight rating. The rating comes on the heels of the company announcing that it expects first-quarter earnings to be in the range of $2.70 to $2.80 per diluted share. Net Earnings in the first quarter of last year came in at $0.67 and $0.77 on an adjusted basis per diluted share.
The company expects first-quarter earnings to increase in all the operating segments compared to the fourth quarter. The largest increase is expected in the steel mills segment as the company capitalizes on higher average selling prices and volumes across all product groups. The raw materials segment is also expected to post slightly higher earnings.
Nucor Corp. (NYSE:NUE) has already repurchased 0.7 million shares during the first quarter at an average price of $175.19 a share. It has also returned $250 million to shareholders through stock buybacks and dividend payments.
Nucor Corporation (NYSE:NUE) is North America’s largest manufacturer of steel and steel products, utilizing electric arc furnaces (EAF) to recycle scrap metal into new steel. As a major recycler, it produces carbon and alloy steel in various forms—beams, rebar, sheet, and plate—alongside fabricated steel products for construction, automotive, and infrastructure industries.
12. Apple Inc. (NASDAQ:AAPL)
Berkshire Hathaway’s Stake: $61,961,735,283
5-Year Return: 109.70%
Stock Upside Potential: 20.14%
Number of Hedge Fund Holders: 169
Apple Inc. (NASDAQ:AAPL) is one of the best stocks to invest in for good returns. On March 24, analysts at Evercore ISI reiterated their Outperform rating for Apple Inc. (NASDAQ:AAPL), impressed by strong momentum in the company’s services segment.
The research firm maintains a $330 price target on the stock in anticipation of the service segment enjoying robust adoption, which should drive average revenue per user higher. Apple is increasingly monetizing its services beyond the App Store as it looks to diversify its revenue streams. According to the research firm, the tech giant is targeting double-digit service segment growth.
Part of the service segment monetization involves producing advertisements in the Maps App. The introduction is part of Apple’s push to boost revenue from its services. Apple is contemplating an ad system that would function similarly to Google Maps by providing a way for brands and retailers to bid for ad slots.
However, Evercore ISI has warned that developments around artificial intelligence remain muted.
Apple Inc. (NASDAQ:AAPL) is a technology giant that designs, manufactures, and markets consumer electronics, software, and online services, including the iPhone, Mac computers, iPad, and wearables. It also operates digital content platforms, App Store, streaming services, and services such as iCloud, Apple Pay, and AppleCare.
