Do you want an extra $1,000, but don't quite know how to invest it? Don't complicate things. Just poach a pick or two (or a few) from one of the most well-known and proven stock pickers in the world. Of course, he's Warren Buffett. There's a reason he leads reliably Berkshire Hathaway Market-beating performance.
With that as a backdrop, here's a closer look at three stocks owned by Berkshire Hathaway that represent solid prospects for you right now, in no particular order.
This is a choice Buffett recommends so commonly that it's almost a cliche. Still, there are good reasons Coca Cola (NYSE:KO) continues to be highlighted as a stock you might also want to own.
Not only is its eponymous Coke woven into world culture, but its other well-known brands such as Gold Mountain Tea, Minute Maid juice, Dasani water and Powerade sports drink (to name just a few) mean the drinks giant always has something to offer wherever consumers' tastes change. , all have to sell something.
That doesn't mean things are always easy. Coca-Cola shares have fallen 16% from their early September highs as the company suffered a small but alarming decline in total product sales, as measured by volume, in last year's fiscal third quarter.
Operating income and net profit fell more sharply during the three months, with no sign that the headwinds might abate in the quarter ended in December.
However, this is a timeless industry, and Coca-Cola's brand seems equally timeless. You just have to give the stock enough time for the company to prove it's worth the wait.
Buffett did, anyway. Berkshire Hathaway began increasing its current holdings of 400 million shares in late 1998. The stock has nearly doubled in value since then, and the dividend - perhaps the main reason Buffett is so fond of it - has more than tripled during that period, continuing its annual growth momentum. 62 years old.
New investors will step in, and the forward dividend yield is just under 3.2%.
Just like Coca-Cola, apple (NASDAQ:AAPL) It is a choice often recommended by Buffett. Just like Coca-Cola, there's a good reason for this. Apple is another timeless stalwart with a reputation for performance.
That's not necessarily easy to believe these days. Revenue has been stagnant since mid-2022, while sales of its flagship iPhone (measured by revenue and unit sales) have also been stagnant.
Buffett and his lieutenants have also recently reduced the size of Berkshire's stake in Apple, reducing it to about 600 million shares since the beginning of last year. It certainly doesn't feel like a vote of confidence.
Just keep things in perspective. Even by Buffett's libertarian standards, Berkshire Hathaway's stake in Apple had grown to a sizeable proportion, at a time when it seemed likely that unrealized stock gains would be subject to income taxes. He might just be thinking strategically.
Regardless, Berkshire's $70 billion stake in Apple remains its largest single position, accounting for about a quarter of the value of the group's total holdings in all stocks.
The company could be on the cusp of significant and long-term growth. Late last year, Apple launched an AI-powered tool that runs directly on its newer devices. This is in contrast to running in the cloud, where most similar platforms like ChatGPT or letterThis is usually the time for Geminis. Apple is also developing a processor chip that can power its own artificial intelligence (AI) data centers.
It's unclear where or where Apple stands in the changing landscape of artificial intelligence. But considering that IDC predicts that the global artificial intelligence platform market will grow at an annual rate of more than 40% by 2028, there is nothing wrong with the company actively participating and seizing every possible growth opportunity.
last added BYD (OTC: WILL.F) Join this list of Warren Buffett stocks you can buy right now with $1,000. If you're not familiar with this name, you're probably more familiar with it than you realize. The electric vehicle (EV) company consistently outsells industry leaders Tesla Happening from time to time since late 2023.
Although BYD makes other products, most of its revenue comes from its affordable electric vehicles and related products. It is also one of the few foreign stocks favored by the typically pro-American Buffett, and the only Chinese stock currently owned by Berkshire.
That's telling in itself, but it's not necessarily surprising given BYD's past and projected growth. Even amid a global economic downturn, especially in and around China, the company's revenue is expected to grow 24% for full-year 2024, followed by nearly 21% revenue growth this fiscal year.
This growth rate is also likely to continue for a long time. While U.S. consumer enthusiasm for electric vehicles is cooling, real global demand is growing and will likely continue to do so.
Bloomberg New Energy Finance, which tracks the low-carbon economy, predicts that total global electric vehicle sales will nearly double from current levels to 30 million vehicles by 2027, and annual sales will reach 73 million vehicles by 2040. In the meantime, expect it to capture at least its fair share of that growth, its home turf (perhaps eventually including the United States?).
And there's no need to worry about BYD's OTC listing (as opposed to a more traditional listing on an exchange). With a market capitalization of $100 billion, this isn't your typical over-the-counter stock.
For many foreign companies, securing a listing on a U.S. exchange can be a logistical hassle and needlessly costly. That's certainly not a problem for Buffett and Berkshire, who currently hold nearly $2 billion worth of the over-the-counter stock.
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On rare occasions, our expert team of analysts will publish 'Double Down' Stocks Recommend companies they think will be popular. If you're worried that you've missed out on an investment opportunity, now is the best time to buy before it's too late. The numbers speak for themselves:
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We're currently issuing "double down" alerts on three companies that are incredible and likely won't be available again anytime soon.
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*Stock Advisor returns as of January 13, 2025
Suzanne Frey is an Alphabet executive and a board member of The Motley Fool. James Brumley works at Alphabet and The Coca-Cola Company. The Motley Fool holds and recommends Alphabet, Apple, Berkshire Hathaway and Tesla. The Motley Fool recommends BYD. The Motley Fool has a disclosure policy.
The Best Warren Buffett Stocks to Buy Now with $1,000 was originally published by The Motley Fool