In this article, we will list the 5 Best Stocks to Buy Now According to Warren Buffett. Please visit 10 Best Stocks to Buy Now According to Warren Buffett, if you would like to see the extended list and the methodology behind it.
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 (NYSE:CVX) .
Chevron Corp (NYSE:CVX)’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 (NYSE:CVX) 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 (NYSE:KO) 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 (NYSE:KO)’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 (NYSE:KO) has increased its dividend for over 60 years without a break.
Carillon Eagle Growth & Income Fund stated the following regarding The Coca-Cola Company (NYSE:KO) 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 (NYSE:BAC) 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 (NYSE:BAC) 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 (NYSE:AXP) 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 (NYSE:AXP)’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 (NYSE:AXP) 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 (NYSE:AXP) 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 (NYSE:AXP).
Bretton Fund stated the following regarding American Express Company (NYSE:AXP) 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. (NASDAQ:AAPL)’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. (NASDAQ:AAPL) 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. (NASDAQ:AAPL) 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. (NASDAQ:AAPL) 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. (NASDAQ:AAPL) is positioned well to keep making money despite a potential plateau in iPhone sales.
YCG Investments stated the following regarding Apple Inc. (NASDAQ:AAPL) 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.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
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.
