Warren Buffett’s Berkshire Hathaway has seen tremendous success over the years. Buffett’s investment strategies have made him one of the wealthiest people in the world. Many investors look to Buffett’s portfolio for guidance on what stocks to buy.
Three stocks in Berkshire’s portfolio that stand out as solid buys for the new year are Coca-Cola, NVR, and Amazon. Coca-Cola has been a longtime holding for Buffett, and the company continues to perform well. Berkshire is set to receive $776 million in dividends from Coca-Cola in the upcoming year.
NVR, a homebuilder, has thrived despite challenges in the housing market. The company’s lower-risk strategy of purchasing finished lots rather than developing them has helped maintain a strong balance sheet. With homebuilder optimism on the rise, NVR looks poised for gains.
Amazon may not be a typical Buffett stock, but it fits his investment principles. The company is a leader in e-commerce, cloud services, streaming, and advertising. Amazon’s recent growth in artificial intelligence also sets it apart, with the generative AI market projected to reach $1.3 trillion by 2032.
Buffett’s standout dividend picks for 2024
Three dividend stocks in Berkshire’s portfolio that have outperformed the market this year are American Express, Citigroup, and Capital One Financial. American Express has seen impressive gains of 56% and has reported strong results quarter after quarter.
Citigroup and Capital One Financial have both increased by around 33%. While Wall Street’s expectations for these stocks in 2025 may be tempered, they have the potential to surprise investors. American Express’s valuation remains relatively attractive, and new products could fuel further growth.
Citigroup’s cheap valuation has been a draw for investors, and analysts seem optimistic about its future. Capital One’s acquisition of Discover Financial Services, if successful, could lead to outperformance next year. Two no-brainer Buffett investments to consider buying right now are American Express and the Vanguard S&P 500 ETF.
American Express accounts for a significant portion of Berkshire’s portfolio and continues to grow at a healthy pace. The company is adding new cardholders and increasing earnings, and its stock trades at a relative discount to the broader market. The Vanguard S&P 500 ETF is an index fund that tracks the growth of the largest 500 publicly traded companies on U.S. stock exchanges.
Buffett is a big fan of index funds and believes that for most people, owning an S&P 500 index fund is the best investment strategy. These funds offer low expense ratios and are more likely to outperform actively managed funds over the long term.
