My Top 5 Warren Buffett Buys for 2025

Source The Motley Fool

Warren Buffett is known for his investing success, generating market-beating returns over the long run. As chairman, he's helped Berkshire Hathaway deliver a compounded annual gain of more than 19% over 58 years -- that's as the S&P 500 posted a compounded increase of about 10% during that period. Buffett believes in buying quality stocks for a reasonable price and holding on for the long term, and this strategy has shown itself to be a winning one.

And that's why investors are eager to hear about Buffett's latest buys and copy some of his moves. Of course, we may not be able to exactly reproduce Buffett's returns -- after all, we're not buying or selling every stock at the same moment as the investing giant. But, by getting in on some of his favorites and holding on, we could score a significant investing win over the long haul -- just like Buffett. Here are my top five Warren Buffett buys for 2025.

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Warren Buffett is seen at an event.

Image source: The Motley Fool.

1. Amazon

Buffett has expressed regret that he didn't invest in Amazon (NASDAQ: AMZN) during its early days, saying he "blew it." But in 2019, one of his investment managers added shares of the e-commerce and cloud computing giant to the portfolio, and Buffett has held on ever since.

Why does Amazon make a great buy today? The company is a leader in the two high-growth industries I just mentioned, generating billions of dollars in earnings quarter after quarter -- and on top of this, Amazon is set to benefit from the hot growth area of artificial intelligence (AI).

Amazon uses AI to help make its operations more efficient, saving time and therefore money -- for example, AI helps determine the best delivery routes at a particular time. And Amazon also sells AI products and services through Amazon Web Services (AWS), a move that's helped AWS reach a $110 billion annualized revenue run rate.

All of this makes the stock a no-brainer addition to your portfolio for 2025.

2. Coca-Cola

Buffett is a big fan of Coca-Cola (NYSE: KO) the beverage -- and probably an even bigger fan of the stock because he's held onto the shares since his original purchase in the late 1980s. The billionaire likes the company's solid moat, or competitive advantage -- and this is its brand strength and its solid presence in more than 200 countries worldwide.

This famous investor also likes Coca-Cola for the passive income it's paid out year after year. The cash dividend paid to Buffett grew from $75 million in the mid-1990s to $704 million in 2022. Most investors aren't able to invest enough to earn dividend payments at that level, but even with a smaller investment you still could generate significant passive income over time. Especially since Coca-Cola has demonstrated its commitment to dividend growth, increasing payments for more than 60 years.

All of this means a purchase of Coca-Cola could boost your portfolio every year thanks to dividends -- no matter what the overall stock market is doing.

3. Apple

The famous investor doesn't own many technology stocks, yet he holds shares of one of the world's top tech companies. In fact, it's Buffett's biggest holding. I'm talking about Apple (NASDAQ: AAPL), maker of the iPhone, Mac, and other top-selling products.

Buffett appreciates the company's smart leadership, calling Apple chief executive Tim Cook "brilliant" in a shareholder letter back in 2021. The top investor sold some of his Apple shares last year, but suggested the move was to lock in profits at the current capital gains tax rate. So, it's clear Buffett still believes in the company's long-term potential.

Apple is another company offering a solid moat as iPhone customers eagerly wait for the next version and aren't swayed by less expensive competitors. And the company's solid base of installed devices today equals another revenue stream: services revenue. It's been reaching records quarter after quarter. So now is a great time to add this tried-and-true player to your portfolio and benefit from a new wave of growth, driven by services.

A person holds a credit card while sitting on a couch and shopping online.

Image source: Getty Images.

4. American Express

American Express (NYSE: AXP) is another longtime Buffett holding -- in fact, in the billionaire's latest shareholder letter, he noted that he held onto the stock, extending his "Rip Van Winkle slumber that has now lasted well over two decades."

Buffett likes the credit card giant for its dividend payments as well as its long track record of earnings strength. And recent reports suggest more growth ahead for the company. In the latest earnings report, revenue rose to a new record of more than $16 billion, and based on this strength, American Express increased its earnings-per-share guidance for the full year.

Importantly, American Express is seeing growth among young customer groups: millennial and Gen-Z customers are the company's fastest-growing group in the U.S., and they represent 80% of new accounts on the recently launched U.S. Consumer Gold Card. This suggests a new wave of growth ahead for this already well-established company -- meaning an investment in American Express could bring you the security of dividend payments as well as the potential for earnings growth ahead.

5. SPDR S&P 500 ETF Trust

Buffett is known for stock picking, but he also considers an overall bet on American companies a key part of his strategy -- and he even recommends it to others. The billionaire does this by investing in S&P 500 index funds, those that mimic the composition of the index and therefore track its performance.

Buffett holds shares of the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and suggests this or another low-cost index fund make great additions to any portfolio. You can buy the SPDR fund as you would a stock -- it trades daily just like a stock. Exchange-traded funds come with fees, as expressed through an expense ratio, and you should choose those with ratios under 1% to ensure the fees don't eat into your returns. The SPDR expense ratio is 0.09%, so it fits our criteria.

The S&P 500, since its launch as a 500-company index in the late 1950s, has delivered an annualized average return of 10%, proving itself as an investment you can count on over time. After all, history shows us that even after the toughest times, the S&P 500 always has gone on to recover and eventually win. So, it makes sense to, like Buffett, bet on the best of American companies this year and beyond.

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American Express is an advertising partner of Motley Fool Money. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon and American Express. The Motley Fool has positions in and recommends Amazon, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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