World Stock Watch

Warren Buffett’s Top Picks for 2025: 5 Stocks to Watch

Warren Buffett, the legendary CEO of Berkshire Hathaway, has a reputation for making savvy investment decisions that yield impressive returns. With a cumulative return of over 5,460,000% in his company’s Class A shares since taking the helm, Buffett’s investment strategy is closely followed by professionals and everyday investors alike.

Satellite Radio Operator Sirius XM Holdings: A Hidden Gem

One of the most intriguing stocks in Buffett’s portfolio is Sirius XM Holdings, a satellite radio operator that has recently undergone a merger with Liberty Media’s Sirius XM tracking stock. The company’s operating model is twofold: it enjoys a legal monopoly, giving it strong subscription pricing power, and its primarily subscription-driven revenue stream provides a steady cash flow during economic uncertainty. With a valuation of just over 7 times forward-year earnings and a dividend yield approaching 5%, Sirius XM is an attractive option for value investors like Buffett.

Occidental Petroleum: Betting on Crude Oil

Buffett and his team have been aggressively acquiring shares of Occidental Petroleum, a move that signals their confidence in the energy sector. With over $30 billion invested in Chevron and Occidental, it’s clear that Buffett expects the spot price of crude oil to remain elevated. The constrained supply of crude oil, coupled with the company’s drilling operations, makes Occidental a prime beneficiary of rising oil prices.

Domino’s Pizza: A Recipe for Success

Domino’s Pizza, a beloved consumer brand, has been a significant addition to Buffett’s portfolio. The company’s transparent marketing approach, process innovation, and reliance on technology have contributed to its success. With a strong international presence and a focus on enhancing brand value, Domino’s is poised for continued growth.

Chubb: A Property and Casualty Insurance Powerhouse

Chubb, a property and casualty insurance company, has been a prized addition to Buffett’s portfolio. The company’s operating model is characterized by stability and premium pricing power, making it an attractive option for value investors. Chubb’s niche focus on high-value homeowner insurance and its ability to reap the rewards of the Federal Reserve’s rate-hiking cycle make it a compelling investment opportunity.

Berkshire Hathaway: A Vote of Confidence

Lastly, Buffett has been aggressively repurchasing shares of his own company, Berkshire Hathaway. With a record $325.2 billion in cash and cash equivalents, Buffett has the means to continue buying back shares, increasing earnings per share and reinforcing his belief in the company’s undervaluation. This move demonstrates his confidence in the company he has built over six decades.

These five stocks are clear winners in Buffett’s eyes, and investors would do well to take note of his investment strategy. By mirroring Buffett’s trading activity, investors can potentially reap impressive returns in the coming years.