Warren Buffett bought 10 stocks in 2024. Here are the best stocks for 2025.

Has Warren Buffett given up on the stock market? Not exactly. Of course, the legendary investor has been a net seller of stocks for eight consecutive quarters and is likely to continue that trend. However, Buffett still bought at least some stocks Berkshire Hathawayinvestment portfolio.

Buffett purchased 10 stocks throughout 2024 (excluding repurchases of Berkshire stock). Which one is the best in 2025?

Several of the stocks Buffett bought last year were existing positions in Berkshire Hathaway. For example, he began actively buying shares of property and casualty insurance companies Chubb (NYSE:CB) In 2023, it will not be revealed which stock was purchased until early 2024.

Buffett adds to already large stake in Berkshire occidental petroleum corp. (NYSE:OXY) Q1 and Q2 2024. A regulatory filing also disclosed that Berkshire Hathaway purchased additional Occidental Petroleum shares in December. A separate filing in early January revealed that Berkshire acquired more shares in the domain name registration service and internet infrastructure provider VeriSign (NASDAQ: VRSN) The end of 2024.

Last year, Liberty Media remained Buffett's favorite. He purchased Class A and Class C shares of Liberty Media SiriusXM Holdings, tracking Liberty Media's SiriusXM Holdings (NASDAQ: SERI). He also increased his stake in Sirius XM itself.

Berkshire also has some new additions to its portfolio. Buffett adds new positions at aerospace and electronics companies in second quarter of 2024 Hey (NYSE: HEI) and cosmetics retail chain operators ultimate beauty (NASDAQ: ULTA). In the third quarter, he purchased Domino's Pizza (NASDAQ: DPZ) and swimming pool supply companies. swimming pool company (NASDAQ: POOL).

We can cross two of Buffett's 2024 purchases off the list for consideration. Liberty Media SiriusXM Holdings merged with Sirius XM in September.

Valuation was Buffett's main concern with another stock he bought last year. Heico's stock trades at nearly 53 times forward earnings. While the company's sales and earnings are growing rapidly, I'm not sure its growth justifies its premium.

Domino's Pizza and Chubb were two of the biggest winners among the 10 stocks Buffett bought last year. Chubb suffered significant losses from the recent Los Angeles-area wildfires, which could impact its stock performance in 2025. However, I suspect Domino's may be able to maintain its momentum.

In a letter to Berkshire Hathaway shareholders last year, Buffett listed Occidental Petroleum as one of a handful of stocks he planned to hold “indefinitely.” I agree with him that Oxy is a quality stock to buy and hold for the long term. However, oil and gas prices are likely to decline in 2025 as the incoming Trump administration adopts policies that promote increased domestic production. Therefore, I'm not sure how Occidental Petroleum stock will perform in the near future.

Buffett (or one of his two investment managers) may have renewed confidence in VeriSign based on year-end stock purchases. I'm not that enthusiastic about VeriSign, though: its growth prospects in 2025 don't look that strong to me.

Wall Street believes Pool and Ulta will post strong growth over the next 12 months. I wouldn't be surprised if the analysts prove correct. But I believe another stock Buffett bought last year could be an even bigger winner in 2025.

You may have noticed that I didn't mention Sirius XM in my previous competitor review. The reason is simple: this is my pick for the best product of 2025.

Sirius XM had a dismal performance last year, with its stock price plummeting 58%. As a result, however, the stock is very cheap, trading at just 6.4 times forward earnings. I suspect this attractive valuation is a major factor in Buffett buying so many shares in 2024.

Income investors will almost certainly consider Sirius XM as one of Buffett's top picks among the stocks he bought last year. Its forward dividend yield is 5.15%, which is higher than the yields of the other nine stocks.

Granted, there's no consensus on Wall Street's prospects for Sirius XM. Only three of 14 analysts surveyed by LSEG in January rated the stock a “buy” or “strong buy.” Six recommend holding Sirius XM, while others give the stock an “underperform” or “sell” rating. However, Sirius XM's average 12-month price target reflects nearly 22% upside potential.

I'm not 100% confident that Sirius XM will be a huge winner this year. I think Buffett's other stocks, including Occidental Petroleum, may be better choices in the long run. But I think Sirius XM has a pretty good chance of rebounding. I bet Buffett agrees.

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Keith Speights works at Berkshire Hathaway and Chubb. The Motley Fool holds and recommends Berkshire Hathaway, Domino's Pizza, Ulta Beauty and VeriSign. The Motley Fool recommends Heico and Occidental Petroleum. The Motley Fool has a disclosure policy.

Warren Buffett bought 10 stocks in 2024. Here are the best stocks for 2025. Originally posted by The Motley Fool