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Yahoo
25 minutes ago
- Business
- Yahoo
Does Warren Buffett Have a Favorite Stock?
Berkshire Hathaway has delivered market-beating returns since 1965 under Warren Buffett's leadership. Buffett and his team have made some landmark purchases over the years, including a staggering $38 billion investment in Apple. But Buffett has spent more than twice that amount buying another stock since 2018 alone, and it could very well be his favorite. 10 stocks we like better than Berkshire Hathaway › Warren Buffett has expressed a positive view toward dozens of stocks during his 60-year tenure as CEO of the Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) holding company. It's hard to say with certainty whether he has a favorite, but if we simply follow the money, he has plowed twice as much into Berkshire Hathaway stock itself through buybacks than he has invested in any other company. When you look at Berkshire's performance, it's no surprise Buffett likes it so much. Its stock has delivered a compound annual return of 19.9% since he became CEO in 1965, crushing the S&P 500 (SNPINDEX: ^GSPC) which grew by just 10.4% annually over the same period. In dollar terms, $1,000 invested in Berkshire stock in 1965 would have been worth a whopping $44.7 million at the end of 2024, whereas the same investment in the S&P 500 would have grown to just $342,906 over the same period. You won't believe how much money Buffett has authorized in share buybacks since 2018, and when you see the number, you might come to the same conclusion I did: Berkshire really is his favorite stock. Berkshire Hathaway was a struggling textiles company when Buffett swooped in and acquired a majority stake in 1965. After realizing its primary operations weren't viable, he turned it into a holding company for his various investments. Today, Berkshire operates a number of wholly owned subsidiaries like GEICO Insurance and Dairy Queen, and manages a $283 billion portfolio of publicly traded stocks and securities. That portfolio includes many of the world's highest-quality stocks. Between 2016 and 2023, Berkshire spent approximately $38 billion acquiring shares of Apple (NASDAQ: AAPL), which is the most money the conglomerate has ever invested in a single company. Going into 2024, the position was worth over $170 billion. That accounted for half the value of Berkshire's portfolio, so Buffett and his team sold over 50% of the stake throughout the year to lock in some gains and manage risk. Apple still accounts for 21.2% of Berkshire's portfolio today. Coca-Cola (NYSE: KO) is another prominent Berkshire holding. Buffett spent $1.3 billion buying 400 million shares in the beverage giant between 1988 and 1994, and to this day he has never sold a single one. The position is now worth $28.1 billion, and it will pay Berkshire $816 million in dividends during 2025 alone. In other words, the conglomerate recoups more than half of its original investment every single year in dividend payments alone. Buffett likes investing in companies that return money to shareholders through dividends and buybacks, because he always takes a long-term view and they compound his returns significantly faster than those that don't. This strategy is one of the key reasons Berkshire's market capitalization has grown to over $1 trillion. American Express, Bank of America, Visa, Moody's Corp, and Kraft Heinz are just a few of Berkshire's other long-term holdings that pay regular dividends. It's completely reasonable to think that Apple is Buffett's favorite stock, given Berkshire's unprecedented $38 billion investment in the iPhone maker, and because he consistently heaps praise on the brand. But since 2018, Buffett has plowed more than twice that amount into his own company, Berkshire Hathaway, through stock buybacks. Buybacks are Buffett's preferred way of returning money to shareholders. They shrink the number of Berkshire shares in circulation, which typically results in a proportionate increase in the price per share. He usually authorizes them when Berkshire can't find enough suitable investment opportunities, because sitting on large piles of idle cash can affect the conglomerate's performance. Buffett has authorized a whopping $77.8 billion worth of buybacks since 2018, but their pace has gradually slowed over the past couple of years, and there haven't been any repurchases at all over the last three quarters. Berkshire can execute buybacks at management's discretion as long as the total value of its cash and Treasury bonds sits above $30 billion. Since the conglomerate has over $347 billion in dry powder right now, that certainly isn't an issue. Berkshire's upcoming leadership change is the most plausible reason for the halt. Buffett plans to step down from his role as CEO at the end of 2025, and he probably wants to leave key decisions like buybacks to his successor, Greg Abel. Buffett will continue serving as Berkshire's chairman, so his brand of long-term value investing will likely endure at the conglomerate. As for which stock might be his favorite, I think most people would have a soft spot for the place where they've worked tirelessly for the last six decades. The fact that he has poured $77.8 billion into Berkshire over the last seven years, instead of finding alternative investments, simply cements the idea that he favors his own company above any other. Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 American Express is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Moody's, and Visa. The Motley Fool recommends Kraft Heinz. The Motley Fool has a disclosure policy. Does Warren Buffett Have a Favorite Stock? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Washington Post
4 hours ago
- Politics
- Washington Post
Republican Rep. Don Bacon, a vocal Trump critic, won't seek reelection
Rep. Don Bacon (R-Nebraska), a vocal critic of President Donald Trump on a range of issues, will not seek reelection, according to a person familiar with his plans who spoke on the condition of anonymity to discuss sensitive information. His purple district is seen as a battleground, making the decision welcome news for Democrats as they attempt to retake the House in next year's midterms. The news of Bacon's plans was first reported by Punchbowl News and NOTUS.
Bloomberg
5 hours ago
- Business
- Bloomberg
Buffett Donates $6 Billion in Berkshire Shares to Charities
Warren Buffett will donate about $6 billion of Berkshire Hathaway Inc. shares to five foundations as part of a pledge he made nearly two decades ago. About 9.43 million Class B shares will be given to the Bill & Melinda Gates Foundation Trust, according to a statement on Saturday. Another 2.92 million shares will be donated to his children's foundations — Sherwood Foundation, the Howard G. Buffett Foundation and NoVo Foundation — as well as the Susan Thompson Buffett Foundation, named after the billionaire's late wife.
CNA
5 hours ago
- Business
- CNA
Warren Buffett donates record US$6 billion Berkshire shares
Warren Buffett donated on Friday (Jun 27) another US$6 billion of Berkshire Hathaway stock to the Gates Foundation and four family charities, his biggest annual donation since he began giving away his fortune nearly two decades ago. The donation of about 12.36 million Berkshire Class B shares boosted Buffett's overall giving to the charities to well over US$60 billion. He donated 9.43 million shares to the Gates Foundation; 943,384 shares to the Susan Thompson Buffett Foundation; and 660,366 shares to each of three charities led respectively by his children Howard, Susie, and Peter: the Howard G. Buffett Foundation, Sherwood Foundation and NoVo Foundation. Warren Buffett still owns 13.8 per cent of Berkshire's stock, based on reported shares outstanding. His US$152 billion net worth prior to Friday's donations made him the world's fifth-richest person, according to Forbes magazine. Buffett would rank sixth after the donations, which surpassed the US$5.3 billion he donated last June. He donated another US$1.14 billion to the family charities last November. In a statement, Buffett maintained he does not intend to sell any Berkshire shares. Now 94, Buffett began giving away his fortune in 2006. He changed his will last year, designating 99.5 per cent of his remaining fortune after his death to a charitable trust overseen by his children. They will have about a decade to distribute the money, and must decide where it goes unanimously. Susie Buffett is 71, Howard Buffett is 70, and Peter Buffett is 67. Warren Buffett has led Omaha, Nebraska-based Berkshire since 1965. The US$1.05 trillion conglomerate owns close to 200 businesses, including Geico car insurance and the BNSF railroad, and dozens of stocks, including Apple and American Express. Susie Buffett leads the Susan Thompson Buffett Foundation, which funds reproductive health and is named for her mother, who was Warren Buffett's first wife. The Sherwood Foundation supports Nebraska nonprofits and early childhood education. The Howard G. Buffett Foundation focuses on global hunger, combating human trafficking and mitigating conflicts. The NoVo Foundation has initiatives focused on marginalised girls and women and on indigenous communities. Buffett said last June that donations to the Gates Foundation would end when he dies.
Washington Post
7 hours ago
- Politics
- Washington Post
Centrist Republican Rep. Don Bacon of Nebraska won't seek reelection
WASHINGTON — U.S. Rep. Don Bacon, a centrist Republican who represents Nebraska's second district with its so-called 'blue dot' that includes many progressive voters around Omaha, will not seek reelection. That's according to a person familiar with his plans and granted anonymity to discuss them Friday. Bacon is known as an independent-minded Air Force veteran who serves on the House Armed Services Committee and has been at the center of many debates in Congress. He has also been chairman of the conservative-centrist Republican Main Street Caucus in the House.
