Chubb remains positioned for profitable growth as it further expands its global presence.
Google parent Alphabet has pulled back since the start of the year, but the tech giant's growth story remains unchanged.
Kraft Heinz isn't splitting up, but new turnaround plans could give the food giant new life.
Warren Buffett, considered one of the most successful investors of all time, ran Berkshire Hathaway from 1965 to 2025. During his tenure, shares in Buffett's main holding company generated returns that handily beat the S&P 500.
Buffett has now retired. His handpicked successor, Greg Abel, is now at the helm. In a recent shareholder letter, Abel noted that he doesn't plan to make many changes to Berkshire Hathaway's corporate structure or its $311 billion stock portfolio. This suggests that Berkshire isn't planning to sell off its stakes in companies like Apple or Coca-Cola anytime soon.
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Among what Berkshire Hathaway owns, three stand out as particularly strong long-term buys right now: Chubb (NYSE: CB), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Kraft Heinz (NASDAQ: KHC).
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Berkshire Hathaway owns numerous insurance companies, most notably Geico. Berkshire has also historically invested in insurance stocks. Right now, Berkshire's 8.8% stake in Swiss-based insurer Chubb, worth around $10.9 billion, is its largest such position. Chubb has rallied in recent months, thanks to the reporting of strong fiscal results.
Last year, the company's net premium earned -- a metric that's the equivalent to net revenue -- increased by 6.3%, from $49.8 billion to $53 billion. Net income per share rose 13.1%, from $22.70 to $25.68.
CEO Even Greenberg said on the company's latest earnings conference call that he anticipates the company can sustain further double-digit earnings growth. If Chubb's growth story continues, shares could keep rallying.
Shares in Google's parent, Alphabet, are up by more than 82% over the past year. Berkshire Hathaway owns 0.3% of Alphabet, a position worth just under $5.5 billion. Abel's recent letter signals he plans to maintain Berkshire's Apple stake, but he may want to hold on to this position as well.
Yes, investor sentiment for "Magnificent Seven" stocks has shifted recently due to concerns that generative artificial intelligence (AI), first thought of as a growth catalyst, could in fact disrupt big tech's competitive moat.
However, while bearishness persists, sentiment could shift again. If Alphabet continues to report strong earnings growth, AI disruption fears may fade. Long-term forecasts still call for earnings growth averaging 16.6% annually between 2026 and 2029. Even if Alphabet maintains its current forward price-to-earnings ratio of 27, shares could still steadily rise.
Berkshire Hathaway made it clear that it didn't approve of Kraft Heinz's plans to split into two companies. That strong stance is believed to be a factor in Kraft Heinz putting those plans on hold, so it appears that Berkshire will continue to keep its 27.5% stake. Berkshire is down billions on its position, but investors buying in today could generate strong returns.
Many may have preferred the split-up plan that would have seen the condiments and staple foods businesses separate into two companies. But management's new turnaround strategy could also prove successful. Kraft Heinz is investing $600 million into marketing, research, and development for its core brands. Meanwhile, the company is implementing efficiency efforts to improve profitability.
If this turnaround proves successful, Kraft Heinz shares could start bouncing back. If market sentiment toward food stocks also improves, the stock could return to a mid-teens forward valuation. Shares currently trade for around 12 times forward earnings.
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Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Berkshire Hathaway and is short shares of Apple. The Motley Fool recommends Kraft Heinz. The Motley Fool has a disclosure policy.