3 No-Brainer Warren Buffett Stocks to Buy Right Now

Warren Buffett’s Berkshire Hathaway has long been synonymous with long-term, value-driven investing. As of early 2025, three of his top holdings—Apple Inc. (AAPL), American Express Company (AXP), and The Coca-Cola Company (KO)—stand out as compelling buys. These stocks reflect Buffett’s enduring focus on durable brands, consistent cash flows, and defensive characteristics, even as markets face volatility. Below, we analyze why these are no-brainer picks for investors seeking stability and growth.

1. Apple Inc. (AAPL): A Tech Titan with a Brand Like No Other

Why Buy Now?
Despite a 15.9% year-to-date (YTD) decline in 2025, Apple remains Berkshire’s largest holding at ~28% of its equity portfolio. Buffett has reduced his stake from its peak (789 million shares to 300 million by early 2025) but retains faith in Apple’s unmatched brand loyalty, global ecosystem dominance, and $300 billion annual cash flow.

Data to show:
- Free Cash Flow (2024): $105 billion (a 10-year high).
- Dividend Yield: 0.5%, but Apple’s share buybacks returned $90 billion to shareholders in 2024.

Risk vs. Reward:
While tech sector headwinds and tariff concerns have pressured the stock, Apple’s pricing power in premium products (e.g., iPhone 16’s $1,500 starting price) and services (Apple+ subscriptions hit 1 billion in 2024) justify its long-term value. Buffett’s reduced exposure mitigates downside risk while maintaining upside potential.

2. American Express (AXP): The Credit Card Giant with Built-In Resilience

Why Buy Now?
American Express has been a Berkshire holding since the 1960s—a testament to its high-spending customer base and durable competitive advantages. Despite a 10% YTD decline in 2025, its fortress balance sheet and 2.8% dividend yield make it a classic Buffett play.

Data to show:
- ROE (2024): 22% (vs. industry average of 15%).
- Customer Retention Rate: Over 80% for its premium Centurion card.

The Edge:
Amex’s focus on affluent consumers (average spend per card: $12,000/year) and its fee-based revenue model (transaction fees, not interest) insulate it from economic cycles. Buffett’s 17% portfolio stake underscores his confidence in this “forever holding.”

3. Coca-Cola (KO): The World’s Most Valuable Beverage Brand

Why Buy Now?
Coca-Cola’s 16.5% YTD gain in 2025 has outperformed nearly all of Berkshire’s holdings. A 35-year holding for Buffett, KO exemplifies his defensive strategy: its global distribution network, pricing power, and 3.2% dividend yield make it a recession-resistant cash generator.

Data to show:
- Market Share (2024): 15% of the global soft drink market, with 200+ brands under its umbrella (e.g., Dasani, Vitaminwater).
- Dividend Growth: 10% CAGR since 2000.

The Case for KO:
Even in a world shifting toward health-conscious beverages, Coca-Cola’s portfolio diversification (sparkling water, plant-based drinks) and pricing discipline (5% annual price hikes since 2020) ensure consistent cash flow. Its $15 billion cash reserves and $10 billion annual free cash flow further solidify its position as a dividend stalwart.

Conclusion: A Portfolio Built for Market Volatility

These three stocks—Apple, American Express, and Coca-Cola—represent the core of Buffett’s strategy: buying quality at a fair price and holding through cycles. Collectively, they account for 54% of Berkshire’s equity portfolio, reflecting their importance to the firm’s success.

Key Data Points Supporting the Thesis:
- Berkshire’s Cash Reserves: $334 billion as of early 2025, a record high, signaling Buffett’s patience and confidence in these holdings.
- Performance Metrics:
- Coca-Cola’s YTD return (+16.5%) and Apple’s free cash flow ($105 billion) highlight their resilience.
- American Express’s ROE (22%) and Coca-Cola’s dividend growth (10% CAGR) underscore their stability.

Why Now?
With the S&P 500 down 3% YTD in 2025, these Buffett picks offer a counterweight to market volatility. Their low correlation to broader tech declines (e.g., Apple’s reduced stake) and dividend-driven income make them ideal for investors seeking both growth and safety.

As Buffett once said, “Risk comes from not knowing what you’re doing.” With these three stocks, investors know exactly what they’re buying—and it’s a formula that has worked for decades.

Disclosure: This article is for informational purposes only and should not be construed as investment advice.