The Best Warren Buffett Stocks to Buy With $1,000 Right Now

Just about every investor knows about Warren Buffett. He's the guy who hosts annual meetings for his company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), that draw tens of thousands of people to Omaha, Nebraska, every year. He's the guy who -- despite being a major billionaire -- still lives in a modest house he bought in the 1950s. Oh, and he's a pretty good investor, too, as he has increased the value of Berkshire by an annual average of nearly 20% over close to 60 years by investing in stocks and by buying many companies outright.

Few of us will ever come close to being as good at investing as Buffett. But we can still do well -- by investing in Berkshire and letting Buffett and his lieutenants invest for us, or by paying attention to what they've bought, sold, and own.

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Here are six Warren Buffett stocks to consider buying for your own portfolio -- whether you have $1,000 to invest or $100,000. Each has a reasonable or attractive valuation, though some are facing headwinds. Dig deeper into any that intrigue you.

1. Occidental Petroleum

Buffett has been building up a sizable position in Occidental Petroleum (NYSE: OXY) and recently owned 28% of the company. Occidental is one of America's largest independent oil and gas producers. It also encompasses a chemical business, OxyChem, and is working to reduce emissions.

The stock was recently down 16% over the past year, which has offered Buffett a lower entry price as he snaps up more shares. One concern is that the company took on a lot of debt to acquire CrownRock, and it was hurt by falling oil prices as well.

But Occidental has upsides, too, such as major assets in the Permian Basin, which is a low-cost region in which to produce energy. It's also reducing its debt.

2. Kraft Heinz

Kraft Heinz (NASDAQ: KHC) was recently Berkshire's eighth-largest stock holding, and Berkshire owns 27% of it. It's probably quite familiar to you, with brands such as Oscar Mayer, Ore-Ida, Velveeta, Kool-Aid, Jell-O, Maxwell House, Smart Ones, and Philadelphia, among others.

It's a competitive field and Kraft's fourth-quarter revenue recently fell short of expectations, but earnings exceeded them, with gross profit margins inching up. Meanwhile, Kraft shares appear reasonably or attractively valued. It has a recent forward-looking price-to-earnings (P/E) ratio of 9, well below its five-year average of 13.

3. Ally Financial

Ally Financial (NYSE: ALLY) is a digital financial services company -- yes, a "fintech" enterprise -- created via a spin-off from General Motors. Thus, you may not be surprised that it specializes in auto loans. It has offered other services, but has decided to switch from diversifying to focusing on what it does best, by selling its credit card business.

4. Charter Communications

Charter Communications (NASDAQ: CHTR) was recently Berkshire's 23rd-biggest holding (out of 43). Berkshire shed about 25% of its shares in the past quarter. Still, the stock might interest some investors, in part due to its appealing valuation. It has a forward P/E of 9, well below its five-year average of 14.

Charter Communications is a broadband connectivity company and cable operator, serving around 57 million households and businesses in 41 U.S. states. (You may know its Spectrum brand.)

Performance-wise, Charter hasn't exactly been killing it lately, but it's not doing that poorly, either. In its fourth quarter, for example, it lost 177,000 total internet customers (but still had 30 million), and added half a million mobile lines, ending up with 10 million. (It added two million in all of 2024.) The company has a significant debt load, though.

5. The Vanguard S&P 500 ETF

I'm including the Vanguard S&P 500 ETF (NYSEMKT: VOO), despite its being an exchange-traded fund (ETF) and not a stock. (ETFs are essentially funds that trade like stocks.) Buffett has long recommended S&P 500 index funds for average investors -- and for his wife, as well. And until this past quarter, Berkshire did hold a tiny position in it.

We could do quite well owning only a simple index fund such as this one. The S&P 500 is an index of 500 of America's biggest companies, from Apple to Zoetis, a leading animal health company. Together, these 500 companies account for about 80% of the total value of the U.S. stock market. The S&P 500 has a solid long-term performance record, averaging annual returns close to 10% over long periods, and it even offers a modest-but-growing dividend payout.

6. Berkshire Hathaway

Finally, there's Berkshire itself, because you can invest in it, and it's likely to be a solid grower over the coming years. It's not likely to average annual gains of 20% any more, but it's not likely to shrink significantly, either. It's built to last, encompassing dozens of wholly owned subsidiaries and lots of stock, too. (It owns more than 21% of American Express, for example, and 9% of Coca-Cola.)

So give any or all of these investments some consideration for berths in your portfolio. If you only have $1,000, you might still spread it across several of these -- or perhaps just stick with an S&P 500 index fund and/or shares of Berkshire.

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American Express is an advertising partner of Motley Fool Money. Ally is an advertising partner of Motley Fool Money. Selena Maranjian has positions in American Express, Apple, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Vanguard S&P 500 ETF, and Zoetis. The Motley Fool recommends General Motors, Kraft Heinz, and Occidental Petroleum. The Motley Fool has a disclosure policy.