It can pay to follow Warren Buffetts investments. Through the conglomerate Berkshire Hathaway, the investor has made some remarkable stock picks, such as his 100-bagger investment in American Express. Buffett is retiring at the end of the year, but he and his investment team are still buying stocks for Berkshire Hathaway.
Here are three stocks that they just plowed a combined $1. 33 billion into. Should you follow Buffett and buy these three stocks for your own portfolio today?.
Where should I put my $1,000 right now? Our analysts just told me the 10 stocks they think I should buy right now. Continue ».
In the second quarter, Berkshire Hathaway purchased 5. 1 million shares of Lennar (NYSE: LEN). The homebuilder has gone through a volatile period after rising interest rates on mortgage loans turned the housing market upside down. Its stock dropped from more than $180 in late 2024 to about $100 in the second quarter. As of October, it had gone back up to about $120. 14.
Homebuilders are cyclical businesses, but Lennar has stood the test of time and turned into one of the leading players in the sector, generating $35 billion in revenue during the past 12 months. Net income during that period fell to $2.7 billion compared to about $3.9 billion in 2023 and $4.6 billion in 2022, which is due to increased costs and decreased home selling prices, which were hurt by higher interest rates.
Buffett and Berkshire Hathaway likely see Lennar as a cheap stock set for earnings growth if the Federal Reserve lowers interest rates further, which will bring down mortgage rates and help propel home prices higher. Lennars price-to-earnings ratio (P/E) is just 12.7 even though its net income is currently depressed, which could make the stock cheap on a forward-looking basis. Plus, there is a major housing shortage in the U.S., which will give Lennar homebuilding demand for years to come.
Constellation Brands (NYSE: STZ) is an alcohol company focused on Mexican beer, with brands such as Pacifico, Modelo, and Corona rounding out its portfolio. Beer consumption in the U.S. is falling, which has caused the stock to decline 48% from all-time highs. Last quarter, the companys beer shipments declined 8.7% year over year.
Even though alcohol consumption has declined, Berkshire Hathaway likely sees a discounted sector with long-term pricing power in Constellation Brands. The stock trades at an enterprise value-to-EBIT (earnings before interest and taxes) of just 11, which makes it look cheap for investors buying today.
Even if alcohol consumption declines for a few more years, it has been a mainstay in societies for centuries and can represent a durable asset for Berkshire Hathaway over the long term. With these high quality Mexican beer brands that are taking market share in the U.S., Buffett likely has a cheap stock in Constellation Brands that will do well by shareholders during the next decade.
If you’ve ever wondered how Warren Buffett became one of the richest people in the world, it wasn’t through luck or inheritance. It was his amazing ability to pick stocks that would go up in value over time. Since 1965, Buffett has been the CEO of Berkshire Hathaway and has made huge profits for himself and his shareholders.
I’ve always been fascinated by Buffett’s investment approach. Unlike flashy Wall Street traders, he lives in Omaha, Nebraska, communicates in simple terms, and takes an incredibly long-term view. His strategy has turned Berkshire Hathaway into a wealth-generating machine that has delivered 19.9% annual returns through 2024.
To put that in perspective: if you’d invested $1,000 in the S&P 500, you’d have about $390,540 today. But that same $1,000 invested in Berkshire? You’d be sitting on a cool $55 million! Let’s dive into the stocks that made the “Oracle of Omaha” filthy rich.
Buffett’s Investment Philosophy
Before we look at specific stocks, it’s important to understand Buffett’s approach He views buying stocks the same way as buying entire companies – whether he’s purchasing 5% or 100% He looks for
- Strong, durable competitive advantages
- Excellent management
- Reasonable prices
- Businesses he understands
- Companies with pricing power to combat inflation
Now, let’s examine the stocks that built Buffett’s fortune:
The All-Stars: Buffett’s Best Stock Picks of All Time
1. Apple (AAPL)
Buffett’s investment in Apple might be the most profitable stock pick in history.
- Investment period: 9 years (since early 2016)
- Cost: ~$10 billion
- Current value: $75.1 billion (as of Dec 2024)
Buffett really loaded up on Apple in late 2016 and early 2017 He once told shareholders that Apple “just happens to be a better business than any we own” Although he sold about half of Berkshire’s stake in Apple by mid-2024, he’s still made an enormous profit.
Interestingly, Buffett once joked that Apple CEO Tim Cook had made more money for Berkshire than he ever had – pretty remarkable considering Buffett’s legendary career!
2. American Express (AXP)
- Investment period: 31 years (since mid-1990s)
- Cost: $1.3 billion
- Current value: $48.3 billion (as of Aug 2025)
Buffett first owned American Express in the 1960s, when he was in an investment partnership. This was after a scandal that put the company at risk. He later built Berkshire’s current position primarily in the mid-1990s.
The dividends from American Express have been incredible – growing from $41 million in 1995 to $409.3 million in 2024. Berkshire currently owns 21.8% of American Express.
3. Coca-Cola (KO)
- Investment period: 36 years (since 1988)
- Cost: $1.3 billion
- Current value: $27.5 billion (as of Aug 2025)
Berkshire began buying Coca-Cola stock in fall 1988. Just three years later, the investment was worth $3. 75 billion, which was more than ALL of Berkshire at the time of the investment. Buffett saw that Coke had a very strong brand and room to grow profitably.
In 2024, Berkshire received $776 million in dividends from its Coke holdings, which represent about 9.3% ownership of the company. The investment has grown more than 20X from its original cost.
4. Bank of America (BAC)
- Investment period: 14 years (since 2011)
- Cost: ~$15.2 billion
- Current value: $30.2 billion (as of Aug 2025)
Berkshire initially invested in Bank of America through preferred stock and warrants in 2011, which were exercised in 2017. Buffett has repeatedly praised Bank of America CEO Brian Moynihan.
Though Berkshire sold about 15% of its stake in 2024, it still owns approximately 8.2% of the bank. BAC has delivered solid returns while becoming one of Berkshire’s largest positions.
5. Moody’s (MCO)
- Investment period: 25 years (since 2000)
- Cost: $248 million
- Current value: $11.7 billion
Berkshire ended up with Moody’s stock after investing in Dun & Bradstreet, which spun off Moody’s in 2000. Buffett was attracted to Moody’s because of its “enormous pricing power” and “almost infinite” returns on tangible assets.
This investment shows Buffett’s genius – turning $248 million into $11.7 billion, a gain of over 4,700%!
6. Chevron (CVX)
- Investment period: 5 years (since 2020)
- Cost: ~$15.4 billion
- Current value: $19.2 billion (as of Aug 2025)
The way Buffett deals with Chevron has changed more often than with his other top holdings. Berkshire started with 48. 5 million shares in 2020, peaked at 165. 4 million in 2022, and reduced to 118. 6 million by 2024.
Berkshire owns about 6% of Chevron, which paid $6.52 per share in dividends in 2024, providing significant income.
Beyond Stocks: Whole Company Acquisitions
Buffett didn’t just buy public stocks – some of his best investments came from acquiring entire companies:
See’s Candy
- Acquired: 1972
- Purchase price: $25 million
- Results: Generated “well over” $2 billion in pre-tax earnings for Berkshire
See’s exemplifies what Buffett looks for – a strong brand with pricing power that helps combat inflation. This relatively small acquisition has been a cash-generating machine for decades.
The Washington Post
- Investment period: 40+ years (1973-2013/2014)
- Cost: $11 million
- Value at peak (2004): Nearly $1.7 billion (154X cost)
The newspaper was eventually sold to Amazon founder Jeff Bezos for $250 million in 2013, with remaining assets such as TV stations going to Graham Holdings. Berkshire exited completely in 2014.
What Made These Investments So Successful?
Looking at Buffett’s winners, we can identify some common threads:
- Industry leadership – Each company was a leader (or close to it) in their industry
- Durable competitive advantages – Strong brands, loyal customers, high switching costs
- Steady cash flow – Reliable earnings that could be reinvested or returned to shareholders
- Strong profitability – High margins and return on invested capital
- Excellent management – Competent leaders who allocated capital wisely
- Reasonable valuations – Buffett rarely overpaid, even for exceptional businesses
The Concentration Strategy
One thing that might surprise you about Buffett’s approach: he doesn’t believe much in diversification (at least not the way most financial advisors teach it). As of 2025, Berkshire’s portfolio had more than 40 stocks, but 63% of its market value was concentrated in just five companies.
This high-conviction approach has been key to generating spectacular returns. When Buffett finds a truly exceptional business at a good price, he bets big and holds for the long run.
Lessons for Regular Investors
While we may not have Buffett’s resources or experience, we can apply several of his principles:
- Think long-term – Buffett’s best investments played out over decades, not days or months
- Understand the business – Only invest in companies you truly understand
- Look for competitive advantages – Seek businesses with moats protecting their profits
- Be patient – Great investment opportunities don’t come along every day
- Concentrate (carefully) – Don’t spread your money too thin across dozens of mediocre investments
Buffett’s Recent Moves
It’s worth noting that Buffett has been trimming some longtime positions lately. He sold about half of Berkshire’s Apple stake by mid-2024 and reduced positions in Bank of America and Chevron. This suggests he might be finding these stocks less attractively priced or is making room for new opportunities.
The Bottom Line
Warren Buffett’s incredible wealth didn’t come from one lucky stock pick or a single brilliant insight. It came from decades of disciplined investing in high-quality businesses at reasonable prices.
What’s truly remarkable is how simple his approach seems in retrospect. He avoided complicated investment schemes, trendy stocks, and excessive trading. Instead, he focused on finding excellent businesses and holding them through market cycles.
The stocks that made Buffett rich – Apple, American Express, Coca-Cola, Bank of America, Moody’s, and others – weren’t necessarily obscure companies nobody had heard of. They were often household names with strong franchises that he recognized were undervalued by the market.
For those of us trying to build wealth through the stock market, Buffett’s story offers both inspiration and a roadmap. We may not match his 19.9% annual returns, but by applying his principles, we can significantly improve our own investment results.
So next time you’re tempted by the latest hot stock tip or market trend, ask yourself: “Would Warren buy this?” The answer might just keep you on the path to financial success.
What do ya think? Is there a company in Buffett’s portfolio that surprises you? Or one you think might be his next big winner? I’d love to hear your thoughts!
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- Lower interest rates could be good for Lennar stock, which is a cheap homebuilder stock.
- Constellation Brands is temporarily having trouble with people drinking, but it has some great beer brands.
- Buffett owns Chevron as a way to protect himself from inflation. As oil prices rise, the company will do well.
- 10 stocks we like better than Lennar ›
It can pay to follow Warren Buffetts investments. Through his company, Berkshire Hathaway, the investor has made some amazing stock picks, like the 100-bagger he made in American Express. Even though Buffett is set to retire at the end of this year, he and his investment team are still buying stocks for Berkshires portfolio.
Here are three stocks that they just plowed a combined $1. 33 billion into. Should you follow Buffett and buy these three stocks for your own portfolio today?.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue ».
In the second quarter, Berkshire Hathaway purchased 5. 1 million shares of Lennar (NYSE: LEN). The homebuilder has gone through a volatile period after rising interest rates on mortgage loans turned the housing market upside down. In the second quarter, its stock fell to about $100 from more than $180 in late 2024, but has recovered to about $120 as of Oct. 14.
Homebuilders go through cycles, but Lennar has stood the test of time and become one of the biggest names in the business, making $35 billion in sales in the last year. Net income during that period fell to $2. 7 billion compared to about $3. 9 billion in 2023 and $4. 6 billion in 2022, which is due to increased costs and decreased home selling prices, which were hurt by higher interest rates.
Buffett and Berkshire Hathaway likely see Lennar as a cheap stock set for earnings growth if the Federal Reserve lowers interest rates further, which will bring down mortgage rates and help propel home prices higher. Lennars price-to-earnings ratio (P/E) is just 12. 7 even though its net income is currently depressed, which could make the stock cheap on a forward-looking basis. Plus, there is a major housing shortage in the U. S. , which will give Lennar homebuilding demand for years to come.
Constellation Brands (NYSE: STZ) is an alcohol company focused on Mexican beer, with brands such as Pacifico, Modelo, and Corona rounding out its portfolio. Beer consumption in the U. S. is falling, which has caused the stock to decline 48% from all-time highs. Last quarter, the companys beer shipments declined 8. 7% year over year.
Even though alcohol consumption has declined, Berkshire Hathaway likely sees a discounted sector with long-term pricing power in Constellation Brands. The stock trades at an enterprise value-to-EBIT (earnings before interest and taxes) of just 11, which makes it look cheap for investors buying today.
Even if people don’t drink as much for a few more years, alcohol has been an important part of society for hundreds of years and could be good for Berkshire Hathaway in the long run. With these high quality Mexican beer brands that are taking market share in the U. S. Buffett probably has a cheap share of Constellation Brands that will do well for shareholders over the next ten years.
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American Express is an advertising partner of Motley Fool Money. Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Chevron, and Lennar. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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How Warren Buffett Made His Fortune
FAQ
What stock made Warren Buffett rich?
No single stock made Warren Buffett rich; instead, his wealth grew by building a diversified portfolio and a massive conglomerate, Berkshire Hathaway. The Motley Fool says that his biggest and most long-term investments have been in companies like Coca-Cola, American Express, and Bank of America, which have given him big returns over time.
What is Warren Buffett’s favorite stock?
Aside from Apple (AAPL), Warren Buffett hasn’t named a single “favorite” stock. However, Coca-Cola (KO) and American Express (AXP) are two of his most-loved and longest-held “forever” stocks. He has put the most money into one company, Apple, than any other. Coca-Cola and American Express, on the other hand, are long-term investments that he plans to keep forever.
What are the three dividend stocks to buy and hold forever?
With this in mind, you may want to consider the following five high-quality dividend growth stocks if you are looking for dividend stocks to buy and hold forever: Lowe’s (NYSE: LOW), NextEra Energy (NYSE: NEE), Realty Income (NYSE: O), Philip Morris International (NYSE: PM), and United Parcel Service (NYSE: UPS).
What if I invested $1000 in Coca-Cola 30 years ago?
An initial investment of $1,000 in Coca-Cola stock 30 years ago would be worth approximately $9,030 today, with about $4,270 from stock appreciation and $4,760 from reinvested dividends. While a good return, this is less than what a similar investment in the S&P 500 would have yielded, which would be around $20,000.
