Warren Buffett’s favourite stock Is soaring in 2025 – And it is not done yet
Warren Buffett is renowned for his legendary investments in companies like Coca-Cola and Apple. But when it comes to the stock he trusts most, the answer is surprisingly simple: Berkshire Hathaway itself. In fact, over the past seven years, Buffett has allocated more capital to buying back Berkshire’s own stock than he is invested in any other company throughout his storied career. That speaks volumes about his confidence in the long-term value of the conglomerate he has built since taking the helm in 1965.
As Buffett prepares to step down as CEO in 2025, his investment principles and Berkshire’s powerful foundation are set to endure. Here’s why Buffett’s favorite stock might deserve a spot in your portfolio.
Unmatched track record of Berkshire
A $1,000 investment in Berkshire Hathaway in 1965, when Buffett took control, would be worth $44.7 million today — a staggering contrast to the $342,906 it would be worth if placed in the S&P 500 over the same period. That kind of outperformance doesn’t come from luck, it is the result of disciplined investing, sound acquisitions, and compounding returns over nearly six decades. As of early 2025, Berkshire is sitting on $347 billion in cash, providing an enormous war chest for share buybacks or acquisitions. Berkshire’s stock has already gained 11% this year, compared to the S&P 500’s flat performance. Even after reaching a $1 trillion market cap, the company’s size hasn’t dulled its edge.
Buybacks over big buys
Despite making massive investments, such as $38 billion in Apple, Buffett has spent even more buying back Berkshire Hathaway shares. Since 2018, he has authorised a staggering $77.8 billion in buybacks, a strong signal that he believes Berkshire is the best value in the market.
Buybacks reduce the number of shares outstanding, boosting the value of remaining shares and Buffett only pulls the trigger when he sees the stock trading below intrinsic value. Although Berkshire paused buybacks in recent quarters, likely due to high valuations and Buffett’s impending CEO transition, its immense cash reserve means future buybacks are still on the table under incoming CEO Greg Abel.
Durable business built to outlast Buffett
While Berkshire’s stock portfolio, led by giants like Apple and Coca-Cola, grabs headlines, the core of its financial strength comes from its wholly owned businesses. These include insurance, logistics, and utilities, which generate consistent cash flow year after year.
Buffett’s investing style prioritise s steady growth, reliable earnings, and management integrity. He often holds stocks for decades, letting time and compounding do the work. His Coca-Cola stake, bought between 1988 and 1994 for $1.3 billion, is now worth $28.8 billion and paid $776 million in dividends in 2024 alone — all without selling a single share. Even as Buffett transitions leadership, the values he instilled — discipline, long-term thinking, and capital efficiency — remain deeply embedded in Berkshire’s DNA.