Warren Buffett’s Berkshire Hathaway has achieved remarkable prosperity over the years. Buffett’s investment tactics have established him as one of the richest individuals globally. Numerous investors seek inspiration from Buffett’s portfolio in determining which stocks to invest in.
Among the standout stocks in Berkshire’s collection that are highly regarded as promising investments for the upcoming year are Coca-Cola, NVR, and Amazon. Coca-Cola has long been a staple in Buffett’s portfolio, and the company continues to excel. Berkshire is poised to receive approximately $776 million in dividends from Coca-Cola in the forthcoming year.
NVR, a prominent homebuilder, has flourished despite the hurdles faced in the housing sector. The company’s lower-risk approach, which involves acquiring finished lots instead of developing them, has bolstered its strong financial position. With increasing optimism among homebuilders, NVR appears ready for substantial growth.
While Amazon may not conventionally align with Buffett’s typical investments, it adheres to his investment philosophy. The company leads in sectors such as e-commerce, cloud computing, streaming, and advertising. Additionally, Amazon’s recent advancements in artificial intelligence distinguish it further, as the generative AI market is projected to soar to $1.3 trillion by 2032.
Noteworthy dividend selections from Buffett for 2024
Three dividend stocks from Berkshire’s holdings that have exceeded market performance this year are American Express, Citigroup, and Capital One Financial. American Express has realized an impressive 56% increase and consistently reports strong quarterly results.
Citigroup and Capital One Financial have also risen by approximately 33%. Despite Wall Street’s restrained expectations for these stocks in 2025, they hold the potential to surprise investors. The valuation of American Express remains relatively appealing, and the introduction of new products could drive further expansion.
Citigroup’s attractive valuation has caught the attention of investors, and analysts remain optimistic about its prospects. If Capital One’s acquisition of Discover Financial Services proves successful, it could result in significant outperformance in the coming year. Two must-consider Buffett investments at present are American Express and the Vanguard S&P 500 ETF.
American Express constitutes a substantial segment of Berkshire’s portfolio and continues its robust growth trajectory. The company is not only gaining new cardholders but also boosting its earnings, with its stock priced at a relative discount compared to the broader market. The Vanguard S&P 500 ETF is an index fund that reflects the performance of the largest 500 publicly traded companies on U.S. stock exchanges.
Buffett advocates for index funds and believes that, for most people, investing in an S&P 500 index fund is the optimal investment strategy. These funds typically have low expense ratios and tend to outperform actively managed funds over the long haul.
