Prediction: Warren Buffett Will Buy These 3 Stocks During His Final 6 Months As Berkshire Hathaway CEO

Source The Motley Fool

The end of an era is coming. Warren Buffett will step down as CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) at the end of 2025 after six decades leading the company. He'll remain Berkshire's chairman, but to say Buffett will be missed is an understatement.

Buffett isn't the kind of person to coast into retirement. You can bet he'll continue to read the annual reports of hundreds of companies throughout the rest of the year. And I suspect the legendary investor will find a few opportunities with his research. I predict that Buffett will buy the following three stocks during his final six months as Berkshire Hathaway CEO.

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Warren Buffett.

Image source: The Motley Fool.

1. Occidental Petroleum

I'd argue that Occidental Petroleum (NYSE: OXY) has become Buffett's favorite stock over the past few years, except for Berkshire Hathaway itself. Exhibit A is that he has purchased shares of the oil and gas producer a whopping 34 times since the first quarter of 2022.

Buffett wrote to Berkshire Hathaway shareholders in 2024 that Occidental is one of a handful of stocks he expects the conglomerate will "maintain indefinitely." He noted that Berkshire owns warrants that allow it to "materially increase our ownership at a fixed price." Those options expire in a few years, though.

Berkshire currently owns approximately 27% of Occidental, a stake so large that it's the conglomerate's sixth largest holding. However, I think Buffett is itching to buy even more.

In August 2022, Berkshire secured regulatory approval to acquire up to 50% of Occidental. With the prospects of rising oil prices now that the U.S. is involved in Israel's attacks on Iranian nuclear facilities, Occidental could be an attractive target for deploying some of Berkshire's nearly $348 billion cash stockpile.

2. Domino's Pizza

Buffett has been a net seller of stocks for 10 consecutive quarters. However, that didn't stop him from gobbling up shares of Domino's Pizza (NASDAQ: DPZ) over the past three quarters. I predict the "Oracle of Omaha" is still hungry for more.

Why? For one thing, Domino's Pizza's share price is approaching levels when Berkshire increased its stake in the first quarter of 2025. The price could soon be right for Buffett to buy again.

Importantly, Domino's Pizza checks off a lot of the boxes on Buffett's list for buying a stock. He undoubtedly understands the company's business quite well. Domino's has a strong brand and is a leader in its industry. It's also highly resilient -- a quality that could matter to Buffett even more now than in the past during these turbulent times.

The following chart highlights an incredibly attractive attribute of Domino's Pizza that many stocks can't boast. Its share price has soared over the past 10 years while its valuation, based on the trailing 12-month price-to-earnings ratio, has fallen. Buffett could make a bigger bet that this trend will continue.

DPZ Chart

DPZ data by YCharts

3. Berkshire Hathaway

You might find this strange, but I'm least confident in my prediction that Buffett will buy more shares of Berkshire Hathaway itself. However, I nonetheless think there's a pretty good chance that he'll authorize some stock buybacks over the next six months.

Berkshire hasn't bought back any of its shares in the last two quarters. Buffett explained in the conglomerate's annual shareholder meeting in May, "If Berkshire buys Berkshire shares in repurchases, we now pay more than you will pay if you buy Berkshire shares." A 1% tax on companies that buy back shares makes it more expensive for Berkshire to repurchase its own stock .

What will it take for Buffett to buy additional Berkshire Hathaway shares? The stock must decline quite a bit. I think this could happen for a couple of reasons.

First, as Buffett's retirement draws closer, some investors could move out of the stock (ill-advisedly, in my opinion). Second, high tariffs could either negatively affect some of Berkshire's businesses or the tariff uncertainty could dissipate, causing investors to find other stocks more attractive. Regardless of how it happens, if Berkshire's share price falls enough, expect the buybacks to resume.

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Keith Speights has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway and Domino's Pizza. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.

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