In this article, we will take a look at Warren Buffett’s 10 Stock Picks with the Strongest Upside Potential.
Warren Buffett is set to retire as the CEO of Berkshire Hathaway by the end of 2025, passing the long-standing executive role to Greg Abel. Before Buffett retires, we have gathered 10 of his best picks with the strongest upside.
Buffett has led Berkshire Hathaway Inc. (NYSE:BRK-A) since 1970, and BRK shares have returned a whopping 283,207% since the company went public in 1980. Buffett’s core focus remains on companies of quality that are fit as investments over the long term. Patience is the key when it comes to the investment strategy of Berkshire’s CEO. The key attributes of his investment strategy revolve around business quality, valuation discipline, and the ability to stay in the game in the long run.
Berkshire Hathaway’s recent cash pile reached a record of around $344 billion as of Q2 2025. During the company’s AGM on May 3, 2025, Buffett was asked about the massive cash Berkshire was holding, to which he replied that the company would invest around $100 billion if they have the right opportunity and the right company. He stated:
“It makes sense to us that we understand and offer good value, and where we don’t worry about losing. And the one problem with the investment business is that things don’t come along in an orderly fashion, and they never will. I mean, it isn’t like every day, you know, the long-term record is sensational, but that is not a product.”
On October 2, Warren finally made his final investment, with Berkshire agreeing to acquire OxyChem from Occidental Petroleum Corporation (NYSE:OXY) for an all-cash transaction valued at $9.7 billion. After a long time, Berkshire has acquired a stake in a firm after sitting idle on cash. Year-to-date, the S&P 500 index has returned around 14.50% compared to BRK-A’s 8.10%, despite economic uncertainties and market volatility.
With these trends in view, let’s take a look at Warren Buffett’s 10 Stock Picks with the Strongest Upside Potential.
Our Methodology
To compile the list of Warren Buffett’s 10 stock picks with the strongest upside potential, we analyzed Berkshire Hathaway’s Q2 2025 13F portfolio. From the complete list of holdings, we shortlisted the companies with the highest analyst upside. Notably, we could not include some of the most prominent and heavyweight names from the portfolio since they didn’t have enough upside potential. We have also mentioned hedge fund sentiment around these stocks using Insider Monkey’s database of Q2 2025. Finally, the stocks are ranked in ascending order based on the upside potential.
We have added the performance of each stock from the end of Q2 2025 to October 21, providing readers with insight into how Berkshire Hathaway’s portfolio picks have played out so far.
Note: The data referred to here is as of the close on October 21.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Warren Buffett’s 10 Stock Picks with the Strongest Upside Potential
10. Amazon.com, Inc. (NASDAQ:AMZN)
Analyst Upside: 19.35%
Share price return between July 1 and October 21: 1.15%
Percentage of Portfolio: 0.85%
Portfolio Holding Value: $2.19 Billion
Number of Hedge Fund Holders: 84
Amazon.com, Inc. (NASDAQ:AMZN) is one of Warren Buffett’s 10 stock picks with the strongest upside potential. On October 21, Amazon.com, Inc. (NASDAQ:AMZN) announced the expansion of Amazon Now across the United Arab Emirates.
Amazon Now, the fastest delivery service of the company, is now available in the UAE, offering delivery of everyday essentials within 15 minutes. Amazon is operating micro fulfillment centers across the UAE, providing daily use items from fresh fruits to personal care, and electronics. Amazon is offering fast delivery, reducing delivery distances, and meeting the evolving needs of UAE customers. Prime members get free Amazon Now delivery on orders above AED 25.
Amazon has also introduced a new 2-hour delivery service option for UAE customers that covers thousands of products from more than 20 categories on Amazon.ae.
As of October 21, Amazon.com, Inc.’s (NASDAQ:AMZN) average price target of $265, based on analysts’ estimates, implies an upside of nearly 19.35% from current levels. Over the past six months, AMZN shares have returned over 32% as of October 21.
Amazon.com, Inc. (NASDAQ:AMZN) is a diversified company that engages in retail sales of consumer products, advertising, and subscription services. Amazon is also a leader in the cloud business through its AWS unit.
9. Constellation Brands, Inc. (NYSE:STZ)
Analyst Upside: 19.65%
Share price return between July 1 and October 21: -12.99%
Percentage of Portfolio: 0.85%
Portfolio Holding Value: $2.18 Billion
Number of Hedge Fund Holders: 42
Constellation Brands, Inc. (NYSE:STZ) is one of Warren Buffett’s 10 stock picks with the strongest upside potential. On October 15, Evercore ISI retained its Buy rating on Constellation Brands, Inc. (NYSE:STZ), maintaining the price target at $170.
Robert Ottenstein from Evercose ISI reiterated the rating as the company exceeded earnings estimates and increased brand loyalty during Q2 FY2026. On October 6, Constellation Brands released its Q2 FY2026 earnings, posting $3.63 in adjusted earnings, which surpassed consensus by $0.22 per share. The revenue was around $2.48 billion, slightly lower than expectations. Despite falling short in sales, the company overcame volume challenges in its beer segments amid macroeconomic pressures.
Ottenstein’s focus was on the company’s clarity on brand loyalty metrics and Corona portfolio dynamics. The company reported increased brand loyalty, particularly for Corona and Modelo, with Corona Familiar performing exceptionally well. While interacting with CEO Bill Newlands on a results call about Corona’s strengths, the analyst noted that Corona Familiar is performing exceptionally well and might actually be a larger brand than previously thought. The CEO highlighted that the Corona Familiar is one of the top share gainers in the category.
As of October 21, Constellation Brands, Inc.’s (NYSE:STZ) average price target of $169, based on analysts’ estimates, implies an upside of almost 19.65% from current levels.
Constellation Brands, Inc. (NYSE:STZ) produces beer, wine, and spirits, operating famous brands such as Corona, Modelo, Robert Mondavi Winery, and Kim Crawford, among others. The company segments include Beer, Wine and Spirits, Corporate Operations and Other.
8. Louisiana-Pacific Corporation (NYSE:LPX)
Analyst Upside: 19.72%
Share price return between July 1 and October 21: 7.95%
Percentage of Portfolio: 0.19%
Portfolio Holding Value: $487 Million
Number of Hedge Fund Holders: 49
Louisiana-Pacific Corporation (NYSE:LPX) is one of Warren Buffett’s 10 stock picks with the strongest upside potential. On October 22, Louisiana-Pacific Corporation (NYSE:LPX) announced its new partnership with the First Nations Forestry Council and the continuation of its collaboration with the Forest Workforce Training Institute’s ForestryWorks program.
The partnership with both institutions will help in developing the next generation of forestry professionals. Louisiana-Pacific will assist in promoting advanced sustainable forest management across North America. LPX’s support for these programs reflects its responsible forest stewardship and the long-term support for wood-based materials in building practices.
“Programs like ForestryWorks and First Nations Forestry Council help ensure forests remain healthy and productive while supporting the future of sustainable forestry. By investing in tomorrow’s workforce, we’re also investing in the continued success of renewable, high-performance building solutions,” said LPX Chair and CEO Brad Southern.
Back in 2018, ForestryWorks introduced the educational program with LPX’s direct involvement. The institution continues to offer education, career awareness, and hands-on training for a professional path in forestry. Through this new collaboration, LPX will fund scholarships for Indigenous students in the Indigenous Forestry Trades Program, providing mentorship from industry experts and classroom learning with a paid practicum.
Louisiana-Pacific Corporation (NYSE:LPX) offers building solutions for applications in new home construction, repair and remodeling, and outdoor structure markets. The company operates under the LP Building Solutions brand name and serves three segments: Siding, OSB, and LP South America (LPSA).
7. Capital One Financial Corporation (NYSE:COF)
Analyst Upside: 19.84%
Share price return between July 1 and October 21: 2.13%
Percentage of Portfolio: 0.59%
Portfolio Holding Value: $1.52 Billion
Number of Hedge Fund Holders: 132
Capital One Financial Corporation (NYSE:COF) is one of Warren Buffett’s 10 stock picks with the strongest upside potential. On October 22, Barclays raised the price target on Capital One Financial Corporation (NYSE:COF) from $257 to $271, keeping the Buy rating.
Terry Ma from Barclays upgraded the price target on COF following strong Q3 2025 results. Barclays was optimistic about Capital One following the Discover Financial Services (DFS) deal during the second quarter. Capital One posted adjusted earnings per share of $5.95, exceeding estimates by $1.59 per share. The revenue came in at $15.36 billion, up by 23% from Q2 2025 and beating estimates by $276.54 million, driven by the effect of the DFS acquisition.
The DFS purchase volume also added to strong growth in the domestic card segment, which helped year-over-year purchase volume to grow by 39%. On top of these strong results, the company has also authorized a new $16 billion share buyback plan and intends to increase its quarterly common stock dividend from $0.60 to $0.80 per share.
In the last six months, COF shares have returned over 31%, as of October 21.
Capital One Financial Corporation (NYSE:COF) is a diversified financial services firm that offers various products, including credit cards, auto loans, savings, and checking accounts. Capital One also provides commercial banking services.
6. Aon plc (NYSE:AON)
Analyst Upside: 23.02%
Share price return between July 1 and October 21: -3.84%
Percentage of Portfolio: 0.57%
Portfolio Holding Value: $1.46 Billion
Number of Hedge Fund Holders: 63
Aon plc (NYSE:AON) is one of Warren Buffett’s 10 stock picks with the strongest upside potential. On October 13, BofA raised the price target on Aon plc (NYSE:AON) from $397 to $412, keeping the Sell rating on the stock.
BofA has raised price targets for the U.S. Insurance companies. Joshua Shanker from BofA has increased the price target following a steady and calm third quarter, with no hurricanes making landfall in the country. After a notable number of macro uncertainties during the first half of 2025, it did not reflect a material adverse impact on earnings, according to BofA.
Separately, Aon plc (NYSE:AON) is working on implementing its Aon United strategy, which has driven sustainable top-line growth and margin expansion in the previous quarters. For the third quarter, analysts on average expect the company to post adjusted earnings per share of around $2.91, while the revenue is projected at $3.96 billion. On October 9, Cantor Fitzgerald analyst Ryan Tunis kept his Buy rating on AON, with a price target of $440. Out of 26 Wall Street analysts, 13 have given a Buy rating to AON ahead of the Q3 earnings.
As of October 21, Aon plc’s (NYSE:AON) average price target of $422.50, based on analysts’ estimates, implies an upside of almost 23.02% from current levels.
Aon plc (NYSE:AON) is a global professional services company. The company operates through Risk Capital and Human Capital segments. Aon offers commercial risk services, such as retail brokerage, specialty solutions, and global risk consulting and captive management, among others.
5. Occidental Petroleum Corporation (NYSE:OXY)
Analyst Upside: 23.44%
Share price return between July 1 and October 21: -2.76%
Percentage of Portfolio: 4.32%
Portfolio Holding Value: $11.13 Billion
Number of Hedge Fund Holders: 64
Occidental Petroleum Corporation (NYSE:OXY) is one of Warren Buffett’s 10 stock picks with the strongest upside potential. On October 20, Susquehanna increased the price target on Occidental Petroleum Corporation (NYSE:OXY) from $54 to $55, keeping its Buy rating on the stock.
Charles Minervini from Susquehanna raised the price target on OXY ahead of the company’s Q3 2025 earnings release on November 10, 2025. Minervini expects crude oil prices to fall to $62.50 per barrel in Q4, while keeping the 2026 projection at $65 per barrel.
However, Wall Street analysts are concerned regarding Occidental Petroleum’s near-term headwind to FCF given the company’s oil sensitivity. On October 16, Wells Fargo initiated coverage on OXY with an Underweight rating and a price target of $42. Wells Fargo analysts see the sale of OxyChem to Berkshire Hathaway as a move that pulled forward debt targets. Even though the leverage issue will be resolved, the company will likely maintain a high beta to commodity dips, believes Wells Fargo. Berkshire will acquire OxyChem for $9.7 billion in an all-cash transaction, one of the final deals of Warren Buffett before he leaves the company by the end of the year.
Occidental Petroleum Corporation (NYSE:OXY) is one of the leading oil and gas companies. The company engages in the acquisition, exploration, and development of oil and gas properties globally.
4. Domino’s Pizza, Inc. (NASDAQ:DPZ)
Analyst Upside: 23.89%
Share price return between July 1 and October 21: -6.94%
Percentage of Portfolio: 0.46%
Portfolio Holding Value: $1.18 Billion
Number of Hedge Fund Holders: 42
Domino’s Pizza, Inc. (NASDAQ:DPZ) is one of Warren Buffett’s 10 stock picks with the strongest upside potential. On October 20, Oppenheimer reiterated the Buy rating on Domino’s Pizza, Inc. (NASDAQ:DPZ), maintaining the price target at $530. Oppenheimer analyst Brian Bittner maintained his bullish stance on DPZ following the company’s Q3 2025 results.
In its results on October 14, Domino’s exceeded the estimated adjusted earnings by $0.12, posting $4.08 per share. The revenue came in at $1.15 billion, surpassing the consensus by $10.76 million. The company performed better than expected during a tough period as Wall Street analysts were anticipating Domino’s to face headwinds from inflation and higher competition.
Domino’s Pizza achieved robust growth in its U.S. business, driven by positive outcomes in carryout, delivery, and order count. The results in the U.S. were influenced by the ‘Best Deal Ever’ promotion, leading to higher sales and franchisee profitability. The launch of Parmesan Stuffed Crust Pizza exceeded expectations, attracting new customers. However, the growth driven by promotions remains a concern because it encourages consumers to rely on specific deals, potentially affecting future pricing strategies.
Domino’s shares have plunged nearly 7% since July 1 as Wall Street’s sentiment remained mixed on the company’s prospects, highlighting the macroeconomic environment as unfavorable for the restaurant industry. As of October 21, Domino’s Pizza, Inc.’s (NASDAQ:DPZ) average price target of $520, based on analysts’ estimates, implies an upside of approximately 23.89% from current levels.
Domino’s Pizza, Inc. (NASDAQ:DPZ) is a prominent pizza company with major business in delivery and carryout. The company operates via three segments, including the U.S stores, international franchise, and supply chain.
3. Diageo plc (NYSE:DEO)
Analyst Upside: 30.47%
Share price return between July 1 and October 21: -3.54%
Percentage of Portfolio: 0.01%
Portfolio Holding Value: $22.96 Million
Number of Hedge Fund Holders: 35
Diageo plc (NYSE:DEO) is one of Warren Buffett’s 10 stock picks with the strongest upside potential. On October 15, Morgan Stanley reduced the price target on Diageo plc (NYSE:DEO) from 1,875 GBp to 1,740 GBp, keeping its Underweight rating on the stock.
Morgan Stanley has lowered the price target for Diageo’s stock trading on the London stock exchange, following the company’s agreement to pay a settlement of $750,000 in Africa. Back in 2021, the Common Market for Eastern and Southern Africa (COMESA) Competition Commission launched an investigation into several companies alongside Diageo. The investigation was conducted on the market allocation arrangements and territorial restrictions that Diageo and other companies were alleged to have.
According to COMESA, Diageo was involved in the practice of market allocation that was carried out through a distribution agreement with its third-party distributors. The investigation found that the U.K. beverage giant had restrictive clauses in production and distribution agreements in Seychelles and Uganda, which fixed product prices in the common market.
Diageo shares have dropped over 3% since Q2; however, analysts, on average, remain positive regarding DEO. BofA’s Andrea Pistacchi keeps a Buy rating on the stock. Pistacchi believes that the spirits industry has been declining 3-4% consistently this year, which is impacting the sales of Diageo in the U.S. However, the analyst sees Diageo’s valuation, along with expectations for a sequential improvement in the U.S. in the last quarter of the year, as a key resistance factor during these uncertain economic conditions.
As of October 21, Diageo plc’s (NYSE:DEO) average price target of $127.80, based on analysts’ estimates, implies an upside of approximately 30.47% from current levels.
Diageo plc (NYSE:DEO) is a U.K.-based premium drinks producer and distributor. The company offers beverage alcohol and operates various brands across spirits and beer categories globally.
2. Jefferies Financial Group Inc. (NYSE:JEF)
Analyst Upside: 34.37%
Share price return between July 1 and October 21: 1.23%
Percentage of Portfolio: 0.01%
Portfolio Holding Value: $23.71 Million
Number of Hedge Fund Holders: 49
Jefferies Financial Group Inc. (NYSE:JEF) is one of Warren Buffett’s 10 stock picks with the strongest upside potential. On October 16, Oppenheimer raised the rating on Jefferies Financial Group Inc. (NYSE:JEF) from Perform to Outperform, keeping the price target at $81.
Chris Kotowski from Oppenheimer upgraded the rating following the increased confidence in the firm’s longer-term policy during its investor day. The analyst sees a specific issue with Jefferies’ First Brands exposure, but he believes it is very limited. The analyst believes that JEF shares are down due to atmospheric credit concerns, as credit managers, BDCs, and banks are under pressure.
Oppenheimer analysts remain optimistic on Jefferies as they believe that with insiders owning 35% of the stake, the company remains entrepreneurial and reflects dynamic growth. However, on October 16, BMO Capital lowered the price target on JEF from $69 to $55, keeping a Market Perform rating. Analysts at BMO see the pressure among regional banks and investor anxiety that makes it hard for them to quantify the risk.
Jefferies Financial Group Inc. (NYSE:JEF) is a full-service investment banking and capital markets firm. The company offers financial advisory, equity underwriting, and debt underwriting services.
1. Charter Communications, Inc. (NASDAQ:CHTR)
Analyst Upside: 40.58%
Share price return between July 1 and October 21: -38.08%
Percentage of Portfolio: 0.17%
Portfolio Holding Value: $433.70 Million
Number of Hedge Fund Holders: 56
Charter Communications, Inc. (NASDAQ:CHTR) is one of Warren Buffett’s 10 stock picks with the strongest upside potential. On October 15, Bernstein retained its Buy rating on Charter Communications, Inc. (NASDAQ:CHTR), keeping the price target at $350.
Laurent Yoon from Bernstein remains positive on CHTR ahead of the company’s Q3 2025 earnings release on October 31. Wall Street expects the company to post average adjusted earnings per share of $9.29 and revenue of around $13.75 billion. The earnings are projected to increase by 3.87% year-over-year, while sales are expected to remain flat compared to the previous year.
The company still faces a decline in Internet customers, having lost around 117,000 in Q2. The higher levels of non-pay Internet churn continue to impact results as the operating environment remains competitive. However, Charter Communications’ long-term Mobile Virtual Network Operator partnership with T-Mobile can significantly boost the growth of its Spectrum Mobile and offer a tailwind to FCF growth. On October 10, Spectrum revealed ‘The Spectrum App Store’ that allows users to activate, upgrade, and manage major streaming apps. Spectrum is collaborating with Apple to offer live Lakers games in Apple Immersive for Apple Vision Pro.
As of October 21, Charter Communications, Inc.’s (NASDAQ:CHTR) average price target of $355, based on analysts’ estimates, implies an upside of approximately 40.58% from current levels. Since July 1, 2025, CHTR has dropped over 38%, after failing to meet analyst expectations in Q2 and experiencing losses in Internet subscribers.
Oakmark Equity and Income Fund, advised by Harris Associates, commented the following regarding Charter Communications, Inc. (NASDAQ:CHTR) in its third quarter 2025 investor letter:
“Charter Communications, Inc. (NASDAQ:CHTR) was the top detractor during the quarter. The broadband leader’s stock price declined after it reported weak second-quarter earnings. Year-over-year earnings before interest, tax, depreciation, and amortization were flat, and the closely watched decline in broadband subscriptions fell at a greater pace than anticipated. However, broadband average revenue per user (ARPU) growth accelerated, reaffirming one of the core points of our thesis. We expect continued near-term volatility in subscriber results but believe the company’s high-capacity network is well positioned to compete over the long term.”
Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity and cable operator. The company serves residential and commercial customers in the U.S. through its Spectrum brand.
While we acknowledge the potential of CHTR 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 CHTR and that has 100x upside potential, check out our report about this cheapest AI stock.
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