We recently published a list of 10 Best Stocks to Buy According to Billionaire Warren Buffett. In this article, we are going to take a look at where The Kraft Heinz Company (NASDAQ:KHC) stands against other best stocks to buy according to billionaire Warren Buffett.
Known and admired for his success, wealth and philanthropy, Warren Buffett is still at the helm of his diversified holding company. From a struggling New England textile company in the 1960s, Buffett has grown Berkshire to a firm boasting a range of businesses from Geico insurance to BNSF Railway, an equity portfolio exceeding $267 billion, and a cash reserve of $334.20 billion at the end of 2024.
Given his success on the investment horizon – a result of decades of strong returns – it doesn’t come as a surprise that Buffett is often touted as one of the greatest investors of all time. In an attempt to mirror his trading activity, many investors search for what stocks is Warren Buffett buying today.
READ ALSO: Warren Buffett’s Portfolio: 15 Longest Held Stocks and 10 Stocks Warren Buffett and Insiders Are Crazy About.
The Oracle of Omaha focuses on companies with strong economic moats and undervalued assets, applying his well-known investment strategy – long-term value investing. Buffett is not that fond of diversification, as he is investing in businesses instead of stocks, picking those he understands.
While diversification as a risk mitigation technique is popular among those who are at the start of their investing journey, Buffett believes diversification could limit knowledge. He also doesn’t consider money the greatest investment tool, given his statement that “the best investment by far is anything that develops yourself, and it’s not taxed at all.”
Despite the strong market performance throughout much of 2024, Buffett appears to have taken a more cautious approach. With overinflated valuations due to high interest rates and deteriorating economic conditions in mind, he opted to sell off substantial stakes in companies whose valuations have become too high.
Buffett is also not fond of President Donald Trump’s tariffs on imports that sent shockwaves through global stock markets, even though his company’s Class B shares dipped 1.4% only on April 3, outperforming the broader market.
In the fourth quarter, Buffett’s 13F portfolio was comprised of a total of 38 security holdings and was worth roughly $267 billion, slightly up from $266 billion in the third quarter. Given that Buffett doesn’t like to diversify much, his top ten holdings account for nearly 90% of his 13F portfolio.
Our Methodology
To make the list of Warren Buffett’s top portfolio holdings we reviewed Berkshire’s fourth-quarter 2024 portfolio and ranked the list according to the hedge fund’s stake value in each firm. If there was an overlap, we prioritized the holding that was worth more money. We have also assessed the number of shares acquired by Berkshire Hathaway and hedge fund sentiment toward each stock from Insider Monkey’s database of hedge investor letters.
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% since May 2014, beating its benchmark by 218 percentage points (see more details here).
That said, please see if there are overlaps between our compilation of the 10 longest-held stocks by The Oracle of Omaha wrapped up in November, and a new list of Warren Buffett’s top portfolio holdings.
A closeup of an assembly line worker inspecting a newly produced jar of condiments and sauces.
The Kraft Heinz Company (NASDAQ:KHC)
Portion of portfolio: 3.74%
Value of holdings: $10,000,245,261
The Kraft Heinz Company (NASDAQ:KHC) is an American multinational food company boasting a vast lineup of iconic food and beverage brands. Being successful in adapting omnichannel strategies in a number of global markets, Kraft Heinz ventured into the alcohol market via its brand Crystal Lights, announcing in March the introduction of its new vodka seltzers at select retailers in the Northeast U.S.
Simultaneously, the processed-food giant continues to leverage AI and machine learning as part of its Agile@Scale Initiative aimed at improving the company’s supply chain efficiency, product quality and visibility. Kraft Heinz Lighthouse, the company’s control tower set up in collaboration with Microsoft allows America’s famed ketchup and bologna seller to make data-driven decisions in real-time based on information and visibility across its supply chain.
Buffett maintained his existing position in The Kraft Heinz Company (NASDAQ:KHC) in the fourth quarter holding 325,634,818 of its shares.
Fourth-quarter earnings report released on February 12 showed a 4.1% year-over-year dip in revenue to $6.58 for the Jell-O maker, missing the $6.66 billion FactSet consensus estimate. The company cited “continued shifts in consumer behavior due to economic uncertainty” as well as a decline in its Lunchables packaged sandwiches and snacks. That said, earnings per share totaled $0.84 was above analysts’ estimate of $0.78. In its core US market, net sales declined 3.9% compared to the previous year, with price hikes only partially offsetting lower sales volumes.
Over the last five years, the company, which has earned its place on Warren Buffett’s top portfolio holdings list, has been paying down its debt while improving operating cash flow. The cash flow to debt ratio has increased from 0.1 to 0.2 over the same period.
On March 17, The World Association of Chefs Societies (Worldchefs), a global association of professional culinary associations partnered with Kraft Heinz allowing it to invest in culinary professionals as well as deliver training through Worldchefs’ educational programs.
Year-to-date The Kraft Heinz Company (NASDAQ:KHC)’s stock has lost 3.35% of its value and has traded at $29.68 on April 24 at the time of writing.
Overall, KHC ranks 8th on our list of best stocks to buy according to billionaire Warren Buffett. While we acknowledge the potential of KHC as an investment, our conviction lies in the belief that some 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 KHC 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. This article is originally published at Insider Monkey.
