Warren Buffett's Favorite Market Indicator Screaming Danger: Grab His Safest Stocks

In 2025, Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK-B) has been a solid net seller of stocks, reporting significant sales based on 13F filings and other disclosures. While the exact figures for the total value of stock sold in 2025 vary somewhat, Berkshire Hathaway sold a net total of approximately $134 billion in stocks in 2024, with sales far exceeding purchases. This selling spree continued into 2025, with substantial sales in the first quarter. Specifically, Buffett sold $174.4 billion more in stocks than he purchased between October 1, 2022, and March 31, 2025, suggesting a considerable portion of this occurred in 2025. In addition, he stopped buying back Berkshire Hathaway stock in the last half of 2024 and has a massive $344 billion in cash and treasury bills. He now owns more Treasury bills than the Federal Reserve. There can be only one reason for this: he’s worried that the stock market is way overbought and too expensive, and he’s probably right.

If any investor has stood the test of time, it is Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock-star-like presence in the investing world, and his annual Berkshire Hathaway shareholders meeting draws thousands of loyal fans who are investors. They were stunned at this year’s meeting when Buffett announced that he would be stepping down as CEO of the investment giant at the end of the year. While he will remain board chair and continue to have a voice in the day-to-day operations, his pre-announced successor, Greg Abel, will assume the chief executive position at the end of the year.

One massive concern for many Buffett followers is that his favorite stock market indicator, the market-cap-to-GDP ratio, hit an all-time high near the end of July, and while that does not mean a market crash is imminent, it does suggest that current valuations are incredibly extended. Given his apparent concern over the stock market now and his massive cash and T-bill holdings, it makes sense for investors to buy some of the most conservative stocks in the Berkshire Hathaway portfolio. Four companies look like very safe ideas for investors now, and all are rated Buy at the top firms on Wall Street that we cover.

Why do we cover Warren Buffett’s stocks?

Few investors have the results and reputation that Buffett has garnered over the past 50 years. While investing has evolved over the past half-century, buying good companies with products and services recognized worldwide, while paying dividends, will always remain a timeless approach.

Chevron

This American multinational energy company predominantly specializes in oil and gas. The integrated giant is a safer option for investors looking to position themselves in the energy sector, and it pays a substantial dividend, which was recently raised by 5%. Chevron Corp. (NYSE: CVX) operates integrated energy and chemicals businesses worldwide through two segments.

The Upstream segment is involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas
• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
• Transportation of crude oil through pipelines, and transportation, storage
• Marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

• Refining crude oil into petroleum products
• Marketing crude oil, refined products, and lubricants
• Manufacturing and marketing renewable fuels
• Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car
• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.

Chevron announced in late 2023 that it has entered into a definitive agreement with Hess Corp. (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion. The Federal Trade Commission approved the deal last October, and it is expected to close this summer.

Wells Fargo has an Overweight rating and a $178 target price.

Coca-Cola

Coca-Cola Co. (NYSE: KO) is an American multinational corporation founded in 1892. It remains a top long-time holding of Buffett, who owns a massive 400 million shares. The stock is up a solid 11% in 2025. Coca-Cola is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands.

Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, including:

• Diet Coke
• Coca-Cola Light
• Coca-Cola Zero Sugar
• Caffeine-free Diet Coke
• Cherry Coke
• Fanta Orange
• Fanta Zero Orange
• Fanta Zero Sugar
• Fanta Apple
• Sprite
• Sprite Zero Sugar
• Simply Orange
• Simply Apple
• Simply Grapefruit
• Fresca
• Schweppes
• Dasani
• Fuze Tea
• Glacéau Smartwater
• Glacéau Vitaminwater
• Gold Peak
• Ice Dew
• Powerade
• Topo Chico
• Minute Maid

Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, and juices and juice drinks.

Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of over 1.9 billion servings per day. It is also important to remember that the company owns 16% of Monster Beverage Corp. (NASDAQ: MNST), which continues to deliver strong financial results.

Domino’s Pizza

Domino’s Pizza Inc. (NASDAQ: DPZ) is an American multinational pizza restaurant chain founded in 1960. Buffett bought this stock in 2024. Domino’s is a company that operates a significant business in both delivery and carryout pizza.

The company operates through three segments:

• U.S. stores
• International franchise
• Supply chain

The U.S. stores segment primarily comprises franchise operations, consisting of franchised stores in the United States. The segment also operates a network of U.S. company-owned stores.

The international franchise segment primarily includes operations related to the Company’s franchising business in foreign markets.

The supply chain segment primarily includes distributing food, equipment, and supplies to stores from the company’s supply chain center operations in the United States and Canada. Its Pinpoint Delivery technology allows customers to receive a delivery nearly anywhere, including parks, baseball fields, and beaches.

Domino’s Pizza is a public restaurant brand with a global enterprise of over 20,500 stores in over 90 markets.

Kroger

This American retail company operates supermarkets, combination food and drug stores, multi-department stores, marketplace stores, and price-impact warehouses throughout the United States. Kroger Co. (NYSE: KR) is a consistently solid and conservative investment.

Its combination of food and drug stores offers:

• Natural food and organic sections
• Pharmacies
• General Merchandise
• Pet centers
• Fresh seafood and organic produce

Multi-department stores offer:

• Apparel
• Home fashion and furnishings
• Outdoor living
• Electronics
• Automotive products
• Toys

The company’s marketplace stores offer:

• Full-service grocery, pharmacy, health, and beauty care
• Perishable goods, as well as general merchandise, including apparel, home goods, and toys
• Price-impact warehouse stores sell groceries, health and beauty care products, meat, dairy, baked goods, and fresh produce

The company also manufactures and processes food products in its supermarkets and online, and it sells fuel through 1,613 fuel centers.

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