The best Warren Buffett stocks to buy with $1,000 right now

Got an extra $1,000 you’d like to put to work but aren’t quite sure how? Don’t make it complicated. Just pull a pick or two (or several) from one of the most well-known and proven stock pickers in the world. It’s Warren Buffett, of course. There is a reason why he has been able to lead reliably Berkshire Hathaway to market actions.

With that as a backdrop, here’s a closer look at three of the Berkshire holdings that are solid prospects for you right now, in no particular order.

It’s such a common Buffett choice that it’s almost become a cliché. However, there is a good reason Coke (NYSE: KO) continues to stand out as a stock you might want to own too.

Not only is its namesake cola woven into the world’s cultural fabric, but its other well-known brands such as Gold Peak tea, Minute Maid juice, Dasani water and Powerade sports drinks (to name but a few) are as well. they mean drink Behemoth always has something to sell, regardless of changing consumer tastes.

That doesn’t mean things are always easy. Shares of Coca-Cola have fallen 16% from their peak in early September in response to a small but alarming drop in the total amount of products sold (as measured by volume) during the company’s fiscal third quarter. last year

Operating income and net earnings fell further over the three-month stretch, with no indication that the headwinds might abate in the quarter that ended in December.

This is a timeless business, however, and Coca-Cola’s brands look just as timeless. You’ll just have to give this stock enough time for the company to prove it’s worth the wait.

Buffett certainly has done it anyway. Berkshire began amassing its current 400 million shares in late 1998. The stock has nearly doubled in value since then, while the dividend, perhaps the main reason Buffett is such a fan, has ‘has more than tripled during that time, expanding one year annually. 62-year growth streak.

Newcomers will step in while the forward-looking dividend yield sits at just under 3.2%.

As much as Coca-Cola, Apple (NASDAQ: AAPL) is a frequently suggested Buffett pick. And as with Coca-Cola, this is for good reason. Apple is another one of those timeless stalwarts with a well-deserved reputation for performance.

This hasn’t necessarily been easy to believe lately. Revenue has stagnated since mid-2022, while sales of its flagship iPhone (as measured by revenue and unit sales) have stagnated over the same period.

AAPL Earnings Chart (TTM). — AAPL Income (TTM), data for YCharts; TTM = 12 months later.

Buffett and his lieutenants have also whittled down the size of Berkshire’s stake in Apple of late, shedding roughly 600 million shares since the start of last year alone. It certainly doesn’t sound like a vote of confidence.

Just keep things in perspective. Berkshire Hathaway’s position in Apple had grown to enormous proportions, even by Buffett’s liberal standards, at a time when it appeared that unrealized stock gains might be subject to income tax. Perhaps he had simply thought strategically.

And either way, Berkshire’s $70 billion stake in Apple remains its largest position, accounting for about a quarter of the value of all the conglomerate’s total holdings combined.

The company may be on the cusp of significant and prolonged growth. Late last year, Apple released an AI-powered tool that runs directly from its newest devices. This is unlike being run in the cloud, like most similar platforms like ChatGPT or alphabetGeminis are usually at this time. Apple is also developing a processor chip that could power its own artificial intelligence (AI) data centers.

It’s not exactly clear where or what Apple’s place is in the ever-changing AI realm. But given IDC’s expectation that the global AI platform market will grow at an annual rate of more than 40% through 2028, the company isn’t wrong to throw its hat into the ring and capture any growth that can

Finally, add BYD (OTC: WILL.F) on your list of Warren Buffett stocks to buy with $1,000 right now. If the name doesn’t ring a bell, you may be more familiar with it than you think. The electric vehicle (EV) company has been outselling the industry leader Tesla from time to time since the end of 2023.

While BYD does other things, most of its top line comes from its affordable electric vehicles and related products. It’s also one of a handful of foreign stocks that the typically pro-US Buffett likes, and the only Chinese stock among Berkshire’s current holdings.

This is telling in itself, but not necessarily surprising in light of BYD’s past and projected growth. Even amid global economic lethargy (especially in and around China), this company’s top line is expected to grow 24% throughout 2024, followed by revenue growth of nearly 21% for the current fiscal year.

This growth rate could also persist for a long time. While US consumer euphoria about electric vehicles is cooling, real world demand is still growing and likely to continue to do so.

BloombergNEF, which tracks the low-carbon economy, predicts that total electric vehicle sales worldwide will nearly double their current levels by 2027, reaching 30 million units, on track for annual sales of 73 million by 2040. As BYD ventures further and further outside. of its turf during this stretch (perhaps eventually including the United States?), look for it to capture at least its fair share of that growth.

And don’t worry about BYD’s over-the-counter listing (as opposed to a more conventional listing on an exchange). With a market cap of $100 billion, this is no ordinary OTC stock.

Securing US stock-based stock listings can be a logistical hassle and also an unnecessary cost for many foreign companies. It’s certainly not a problem for Buffett and Berkshire, who currently have nearly $2 billion worth of this over-the-counter ticker.

Ever feel like you’ve missed the boat on buying the hottest stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock. recommendation for companies that believe they are about to exit. If you’re worried that you’ve already missed your investment opportunity, now is the best time to buy before it’s too late. And the numbers speak for themselves:

Nvidia: if you invested $1,000 when we doubled in 2009, you would have $341,656!*
Apple: if you invested $1,000 when we doubled in 2008, you would have $44,179!*
Netflix: if you invested $1,000 when we doubled in 2004, you would have $446,749!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another opportunity like this anytime soon.

See 3 “Double Down” actions »

* Stock Advisor returns from January 13, 2025

Alphabet executive Suzanne Frey is a member of The Motley Fool’s board of directors. James Brumley holds positions at Alphabet and Coca-Cola. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway and Tesla. The Motley Fool recommends BYD Company. The Motley Fool has one disclosure policy.

The best Warren Buffett stocks to buy with $1,000 right now was originally published by The Motley Fool

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