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.
Source: Pexels.com
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) 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. 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 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., 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. 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.
11. Allegion plc (NYSE:ALLE)
Berkshire Hathaway’s Stake: $124,212,776
5-Year Return: 15.43%
Stock Upside Potential: 20.63%
Number of Hedge Fund Holders: 40
Allegion plc (NYSE:ALLE) is one of the best stocks to invest in for good returns. On March 4, Allegion plc (NYSE:ALLE) announced it had reached an agreement to acquire privately held DCI Hollow Metal on-demand through one of its subsidiaries.
With the acquisition, the company gains access to a leading US manufacturer of custom quick-ship hollow metal doors and frames. Its solutions are installed in a wide range of facilities, including hospitals, schools, government buildings, and commercial offices. DCI is poised to strengthen Allegion PLC’s core mechanical portfolio and go-to-market strategy in non-residential markets.
A merger of the two will result in a combined company capable of serving customers with a stronger local presence, faster response times, and tailored solutions. DCI is poised to operate as part of Allegion’s America segment under Senior Vice President Dave Illardi.
The company’s vice president of national electronic sales, Mark Casey, has already reiterated the commitment to delivering solutions and bringing together hardware, software, and services to address real-world pain points. The ultimate focus is to meet the demands of the access control industry.
Allegion plc (NYSE:ALLE)is a global provider of security and access control solutions, specializing in mechanical and electronic door hardware for residential and commercial spaces. Their portfolio includes brands like Schlage, LCN, and Von Duprin, focusing on locks, exit devices, door closers, and interconnected security software.
10. Aon plc (NYSE:AON)
Berkshire Hathaway’s Stake: $1,271,424,876
5-Year Return: 40.54%
Stock Upside Potential: 23.76%
Number of Hedge Fund Holders: 70
Aon plc (NYSE:AON) is one of the best stocks to invest in for good returns. On March 16, TD Cowen reiterated a Buy rating on Aon plc (NYSE:AON) and a $416 price target. The company boasts of a differentiated approach that sets it apart amid growing concerns about artificial intelligence disruption in the industry.
The research firm remains confident about the company’s outlook despite deceleration in property and casualty pricing that has hit the insurance sector. In addition, AON is one of the companies that has come under scrutiny amid concerns about AI disruption in the financial sector. According to TD Cowen, the company is well-positioned to advance in an artificial intelligence-powered environment. TD Cowen insists it is an opportune time for the company despite the concerns.
The company’s edge lies in its ability to leverage data and expertise across its Risk Capital and Human Capital businesses. Consequently, the research firm expects it to deliver margin expansion and mid-single-digit or higher long-term organic revenue growth.
Aon plc (NYSE:AON) is a leading global professional services firm that provides advice and solutions in risk, retirement, and health. They operate as a broker for commercial risk, reinsurance, and health solutions, while also offering human capital consulting to help organizations manage workforce productivity and talent. Aon operates in over 120 countries, helping clients make better business decisions.
9. American Express Company (NYSE:AXP)
Berkshire Hathaway’s Stake: $56,088,378,465
5-Year Return: 109.11%
Stock Upside Potential: 25.02%
Number of Hedge Fund Holders: 83
American Express Company (NYSE:AXP) is one of the best stocks to invest in for good returns. On March 25, American Express Co expanded its business card lineup with the introduction of the American Express Graphite Business Cash Unlimited Card.
The Graphite business card is part of American Express’ bid to help businesses manage spending, track expenses, and automate routine work. The card is tailored for business owners who want straightforward rewards and flexibility. The card offers 2% cash back on eligible purchases and 5% cash back on flights and prepaid hotels through Amex Travel.
The card also comes with incentives tied to higher spending. In addition, the company has introduced expense management software that brings card activity and expense tracking into a single platform. The system allows businesses to issue virtual cards and track employee spending.
American Express is also placing greater focus on how AI can fit into day-to-day business operations. Consequently, it has introduced a $300 annual statement credit toward ChatGPT Business subscription costs for holders of its U.S. Business Platinum and Business Gold cards.
American Express Company is a global financial services company primarily known as a payment card issuer and operator of a closed-loop payments network. It provides credit and charge cards, travel services, and traveler’s cheques to consumers and businesses, along with merchant acquisition and payment processing services, often focused on premium lifestyle benefits.
8. Bank of America Corporation (NYSE:BAC)
Berkshire Hathaway’s Stake: $28,451,276,370
5-Year Return: 25.66%
Stock Upside Potential: 26.43%
Number of Hedge Fund Holders: 118
Bank of America Corporation (NYSE:BAC) is one of the best stocks to invest in for good returns. On March 25, Jefferies touted Bank of America Corporation’s net interest income outlook of 5% to 7% over the next five years, as the company benefits from fixed asset repricing.
The research firm expects the investment bank to embark on disciplined expense growth, likely to drive durable operating leverage. In addition, it expects a strong consumer deposit base to be a positive differentiator, as the bank also boasts of a solid credit quality. Therefore, Bank of America’s return on tangible common equity is expected to improve to between 16% and 18% over the next two to three years, up from 14% in 2025.
Amid solid underlying fundamentals, Jefferies has initiated coverage of the Bank with a Buy rating and a $60 price target. The positive stance comes on the heels of the investment bank forming a new team focused on helping private equity firms exit their investments. Private Capital M&A Group is the new segment whose main goal is to help buyout firms monetize their portfolio companies.
Bank of America Corporation is a leading global financial institution serving roughly 70 million consumer and small-business clients through banking, investing, and asset management. It offers services including personal checking/loans, credit cards, mortgage, Merrill wealth management, and corporate/investment banking to corporations and institutions in over 35 countries.
7. Moody’s Corporation (NYSE:MCO)
Berkshire Hathaway’s Stake: $12,602,556,092
5-Year Return: 41.04%
Stock Upside Potential: 29.18%
Number of Hedge Fund Holders: 91
Moody’s Corporation (NYSE:MCO) is one of the best stocks to invest in for good returns. On March 25, Argus reiterated a Buy rating on Moody’s Corporation with a $550 price target. According to the research firm, artificial intelligence is poised to strengthen the company’s core credit rating and data analytics business.
The sentiment comes against the backdrop of the stock coming under pressure amid growing fears that artificial intelligence will replace financial information services companies. Argus analyst John Eade has downplayed the concerns, insisting AI will not have a negative impact on Moody’s and other financial services companies with proprietary data.
The company delivered solid fourth-quarter 2025 results, characterized by adjusted earnings per share of $3.64, up 39% year over year. Revenue, on the other hand, was up 13% year over year to $1.89 billion, signaling that the company is still in a phase of robust growth despite widespread AI concerns.
Similarly, management raised the company’s dividend payout by 10%, marking the 17th consecutive year of increase, affirming resilience and prospects for growth.
Moody’s Corporation is an integrated risk assessment firm that operates globally through two main segments: Moody’s Investors Service and Moody’s Analytics. It provides credit ratings, research, and risk analysis tools for debt obligations, alongside economic research, financial modeling, and software solutions to help businesses manage financial risk.
6. Alphabet Inc. (NASDAQ:GOOGL)
Berkshire Hathaway’s Stake: $5,585,842,446
5-Year Return: 187.47%
Stock Upside Potential: 29.36%
Number of Hedge Fund Holders: 288
Alphabet Inc. (NASDAQ:GOOGL) is one of the best stocks to invest in for good returns. On March 25, Alphabet Inc. released Lyria 3 Pro, a music-generation model that lets users create tracks up to 3 minutes long. The launch comes a month after the company released Lyria 3, which allowed users to release only 30-second tracks.
In addition to making it easier for users to create longer tracks, the new model offers better creative control and customization. For starters, it lets users specify different elements of a musical piece, such as intro, verses, and choruses. It also makes the track structure easier to understand than its predecessor.
The Lyria 3 Pro model will also roll out in the Gemini app, but only for paid subscribers. The company is also rolling it out in Google Vids, the video editing app, and ProducerAI, a generative artificial intelligence-powered music production tool it acquired last month.
On the other hand, Google has been hit with a $1.8 million fine in Los Angeles over claims that it designed social media platforms harmful to young people. In the lawsuit, Meta was also fined $4.2 million.
Alphabet Inc. is a multinational technology conglomerate holding company created in 2015 through the restructuring of Google to separate its core internet services from its “Other Bets” ventures. It acts as an umbrella organization, aiming for “cleaner and more accountable” management of its various subsidiaries.
5. Mastercard Incorporated (NYSE:MA)
Berkshire Hathaway’s Stake: $2,275,897,610
5-Year Return: 37.17%
Stock Upside Potential: 31.22%
Number of Hedge Fund Holders: 150
Mastercard Incorporated (NYSE:MA) is one of the best stocks to invest in for good returns. On March 17, Evercore ISI reiterated an In Line rating on Mastercard stock (NYSE:MA) with a $610 price target. The research firm expects the company to perform in line with its industry peers on announcing the acquisition of BVNK for $1.8 billion, including $300 million in contingent payments.
The company has acquired a stablecoin payment orchestration layer to bolster its capabilities in the cryptocurrency ecosystem. The acquisition is also poised to strengthen the company’s edge in providing optionality for interoperability between traditional payment rails and blockchain settlement.
Evercore ISI has touted the acquisition as both offensive and defensive. For starters, it addresses concerns about legacy payment rails. Additionally, it is also set to alleviate concerns about disruptions to traditional payment networks. BVNK will also enhance MasterCard’s digital asset capabilities by enhancing interoperability between traditional fiat currencies and stablecoin.
Wolfe Research has also touted the potential impact of the BVNK acquisition, therefore asserted its outperform rating on the stock and a $715 price target.
Mastercard Incorporated is a global technology company in the payments industry that operates a massive network infrastructure, facilitating the transfer of funds between financial institutions, merchants, and consumers.
4. Visa Inc. (NYSE:V)
Berkshire Hathaway’s Stake: $2,910,002,197
5-Year Return: 43.15%
Stock Upside Potential: 31.98%
Number of Hedge Fund Holders: 184
Visa Inc. (NYSE:V) is one of the best stocks to invest in for good returns. On March 25, Visa Inc. confirmed it will join the Canton Network as the first major global payments company. It is to serve as a super validator focused on helping extend privacy-preserving blockchain infrastructure to banks and other financial institutions.
In addition, the payments provider is to help clients choose to run and secure operations on the Canton Network by applying the same trusted and reliable standards that it uses to operate its payment systems. Consequently, institutions will be able to experiment with and scale stablecoin payment settlement and treasury use cases.
By bringing Visa-grade trust governance and operational rigor, Visa hopes to alleviate privacy concerns that have prevented many mainstream financial institutions from moving most of their operations on-chain. Canton Network has already gained wide adoption across capital markets in powering the issuance and trading of tokenized financial assets. Visa hopes to play a crucial role in connecting capital markets with payments and bringing on-chain payments into the Canton ecosystem.
Visa Inc. is a global payments technology company that operates a secure, electronic network (VisaNet) to facilitate digital transactions between consumers, merchants, and financial institutions across 200+ countries. It acts as an intermediary, processing, authorizing, and settling payments without issuing cards or extending credit directly.
3. Amazon.com, Inc. (NASDAQ:AMZN)
Berkshire Hathaway’s Stake: $525,346,320
5-Year Return: 38.98%
Stock Upside Potential: 34.19%
Number of Hedge Fund Holders: 381
Amazon.com Inc. (NASDAQ:AMZN) is one of the best stocks to invest in for good returns. On March 25, Tigress Financial Partners reiterated a Buy rating on Amazon.com Inc. and raised the price target to $315.
The price target hike is in response to growing optimism about the long-term impact of expanding artificial intelligence capabilities across the company’s cloud unit and retail operations. In addition, the company is integrating AI into its logistics network and high-margin revenue streams. The research firm expects the heightened AI integration to be a key long-term growth driver.
Amazon is already building a three-layer AI system around Amazon Web Services, expected to trigger faster growth and higher margins. In addition, artificial intelligence advertising and Prime membership are also expected to generate high-margin profits. The company boasts a robust balance sheet, well-positioned to support ongoing innovation and strategic acquisitions to enhance AI services and infrastructure.
JPMorgan has also raised its price target for Amazon stock to $280, buoyed by heightened demand for its cloud computing solutions and capacity expansion.
Amazon.com, Inc. is a global technology company focused on e-commerce, cloud computing, digital streaming, and artificial intelligence. It operates the world’s largest online marketplace, provides infrastructure services through Amazon Web Services (AWS), produces consumer electronics like Kindle and Echo, and offers entertainment content via Prime Video.
2. Louisiana-Pacific Corp (NYSE:LPX)
Berkshire Hathaway’s Stake: $457,488,683
5-Year Return: 31.54%
Stock Upside Potential: 41.87%
Number of Hedge Fund Holders: 53
Louisiana-Pacific Corp (NYSE:LPX) is one of the best stocks to invest in for good returns. On March 3, Oppenheimer reiterated an Outperform rating on Louisiana-Pacific Corp with a $115 price target. The bullish stance comes amid the stock underperforming the overall market.
According to Oppenheimer, Louisiana-Pacific has been misjudged, in its first-quarter 2026 guidance signaling above the market growth trajectory. The research firm expects the company to deliver more than $500 million of siding EBITDA in 2027. It also expects OSB prices to add $20 to the stock, as there is no shift in underlying fundamentals, rather than inventory movements.
Louisiana-Pacific expects its first-quarter 2026 siding net sales to range between $350 and $355 million, with adjusted EBITDA between $80 and $85 million. Full-year siding net sales are expected to be $1.7 billion, representing a 2% growth with adjusted EBITDA of $450 million. According to the research firm, there is no change in underlying fundamentals, even as inventory movements and comparisons affect results.
Louisiana-Pacific Corp manufactures engineered wood building products, focusing on sustainable siding, structural solutions, and oriented strand board (OSB) for residential and commercial construction. It specializes in durable products such as LP SmartSide and LP Legacy premium subflooring.
1. Capital One Financial Corporation (NYSE:COF)
Berkshire Hathaway’s Stake: $1,732,874,000
5-Year Return: 43.68%
Stock Upside Potential: 50.38%
Number of Hedge Fund Holders: 129
Capital One Financial Corporation (NYSE:COF) is one of the best stocks to invest in for good returns. On March 23, it achieved a significant milestone in its bid to bridge the gap between sensitive data and secure AI adoption. The company unveiled new innovations for Capital One Databolt to enhance how enterprises protect and leverage underutilized data.
The new Databolt capabilities will protect sensitive data elements in unstructured data formats, including PDFs, emails, transcripts, and office documents. In addition, it will inspect unstructured data formats and protect personally identifiable information. Databolt will also streamline information architecture, granular access controls, and clear separation of responsibilities.
According to Prashant Prahlad, SVP and Head of Product, Capital One Software, the ultimate goal is to unlock the value of sensitive data while making security seamless across the data lifecycle with the new updates. In addition, Capital One Financial Corp is focused on helping organizations move past the security bottlenecks that acts as a barrier to innovation. Focus is also on making it easier for enterprises to forge ahead with artificial intelligence initiatives without compromising data security.
Capital One Financial Corporation is a diversified financial services holding company specializing in credit cards, consumer banking, and commercial lending. As a tech-forward financial institution, it operates primarily through digital channels, offering high-yield savings accounts, loans, and credit cards.
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