3 Warren Buffett Stocks to Buy Hand Over Fist in July

Key Points

• BYD isn't a typical Buffett stock, but has qualities that fit his philosophy.

• VeriSign makes the internet function as we know it today.

• Buffett loves Coca-Cola for the soda as well as as the company.

Warren Buffett is one of the most legendary figures on Wall Street. The longtime CEO of Berkshire Hathaway turned the company into a dominant conglomerate that has its hands in everything, including real estate, insurance, energy, consumer goods, and healthcare.

Under Buffett's leadership, Berkshire's portfolio gained 5,502,284% from 1965 to the end of 2024. By way of comparison, the S&P 500 gained 39,054%, including dividends, in that same period. Now 94 and planning a well-deserved retirement at the end of the year, Buffett undoubtedly belongs on the Mount Rushmore of investors.

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Buffett's philosophy involves buying quality businesses that have distinct competitive advantages. He invests for the long term, often holding stocks for decades, and tends to prefer companies with strong management, reliable earnings, and a consistent dividend.

Now that the calendar has turned to July and we're halfway through the year, this is a good time to take a cue from the Oracle of Omaha himself and choose stocks that are held in Buffett's portfolio. If you're looking for a new investment, you can't go wrong with these three Warren Buffett stocks: BYD (OTC: BYDDY), VeriSign (NASDAQ: VRSN), and Coca-Cola (NYSE: KO).

BYD: An outlier that fits the Buffett mold

On the surface, BYD doesn't look like a Buffett stock. The Chinese company, which got its start in 1995 as a rechargeable battery maker, now is one of the world's biggest manufacturers of electric vehicles (EVs). It also works in rail transit, new energy, electronics, and power storage. Berkshire's stake in BYD is more than 162 million shares, valued at $2.5 billion.

Berkshire actually got involved with BYD because of the influence of Charlie Munger, the longtime Buffett confidant and late Berkshire Hathaway vice chairman. But the company fits with Berkshire's portfolio because of the key position it has in the Chinese EV market. BYD is by far the biggest supplier of EVs in China, delivering 3.52 million vehicles in 2024. The company in second place, Wuling, had just 673,279 deliveries.

Earnings for the first quarter showed revenue of $23.77 billion, up 36% from a year ago. Profits totaled $1.27 billion, up 100% from the same quarter a year ago.

VeriSign makes the internet functional

VeriSign is one of those businesses that you may not know a lot about, but as it turns out, you use its products every day. The Virginia-based company provides domain name registry services and internet infrastructure -- in short, it's the exclusive registrar for websites that end in .com or .net.

The company says it provides support for 169.8 million domain names that end with .com or .net, and processes more than 428.1 billion domain name system (DNS) queries each day. The scope of its work, and its massive competitive moat are exactly the qualities that Buffett looks for when choosing a stock.

First-quarter financials included revenue of $402 million, up 4.7% from a year ago. Net income was $199 million and $2.10 per year, compared to $194 million and $1.92 per share in the first quarter of 2024. Buffett feels strongly enough about VeriSign that Berkshire owns 14.3% of the company, holding nearly 13.3 million shares.

Coca-Cola is a longtime Buffett favorite

Buffett is passionate about Coca-Cola, both as a beverage and as a company. He famously downs five cans of Coca-Cola per day, and once told Fortune magazine that he gets 25% of his daily calories from the carbonated drink.

But Coca-Cola does a lot more than its namesake soda. As people started looking for healthier options, Coca-Cola expanded its offerings to include bottled water, sports drinks, tea, and juices. It's even started a line of alcoholic beverages.

Earnings for the first quarter showed revenue down 2%, to $11.1 billion. But on the plus side, the company managed to improve its operating margin to 32.9% from just 18.9% in the first quarter of 2024. And earnings per share grew 5%, to $0.77 per share.

Berkshire owns 400 million shares of Coca-Cola stock, representing a 9.3% share. Its stake is worth a whopping $28.45 billion.

Should you invest $1,000 in BYD Company right now?

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Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and VeriSign. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy.