These 3 Stocks Have Made Warren Buffett the Most Money in 2024. Are They No-Brainer Buys for the New Year?

Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now

Keith Speights, The Motley Fool

Thu, Dec 26, 2024, 2:46 AM 4 min read

1. Jefferies Financial Group

Jefferies Financial Group (NYSE: JEF) ranks as Buffett's biggest winner of 2024. Shares of the financial services company have skyrocketed more than 90%. This impressive gain came on top of a 23% increase in 2023.

Buffett's timing was almost perfect in buying Jefferies. He initiated a position in the third quarter of 2022. Since the end of that quarter, the stock has skyrocketed 175%.

Roughly 56.5% of Jefferies' total revenue in the third quarter of 2024 stemmed from investment banking, which has especially enjoyed strong momentum this year. Declining interest rates have helped release pent-up demand for deals involving the company's advisory services.

2. Liberty Live Group

Technically, Liberty Live Group (NASDAQ: LLYV.A) (NASDAQ: LLYV.K) claims the No. 2 and No. 3 spots among Buffett's top-performing stocks of 2024. That's because Berkshire Hathaway owns Liberty Live's Class A and Class C shares. Both have delivered huge gains of around 85% this year.

Liberty Live Group represents Liberty Media's interests in Live Nation Entertainment and other minority investments. One key reason behind Liberty Live Group's strong performance is that Live Nation has delivered solid returns in 2024, jumping over 40% higher.

Investors also seem to like Liberty Media's plans to split off Liberty Live Group as a separate public entity next year. This move should lower the discount to net asset value of Liberty Live stock and leave Liberty Media focused on its motorsport businesses and related investments.

3. American Express

American Express (NYSE: AXP) is the second-largest holding in Berkshire Hathaway's portfolio, with a value of around $45 billion. It's also one of Buffett's biggest winners this year, with the stock soaring close to 60%.

Much of American Express's success in 2024 has come from the company consistently beating expectations with its quarterly results. For example, AmEx posted adjusted earnings per share of $3.49 in Q3, easily topping the consensus estimate of $3.28. The credit card giant's top line has also continued to rise steadily, with American Express achieving 10 consecutive quarters of record revenue.

Buffett is used to American Express making him a lot of money. In his letter to Berkshire Hathaway shareholders earlier this year, he noted that the conglomerate's share of AmEx's 2023 earnings was much higher than its initial $1.3 billion investment years ago.

No-brainer buys for 2025?

I don't consider any of Buffett's top stocks of 2024 no-brainer buys for the new year. None appear to be absolute slam dunks, in my opinion. However, I think two of the three are nonetheless pretty good picks.

The lone outlier is Liberty Live Media. Its shares now trade at 29 times forward earnings, which is a little pricey to me. Could the stock keep up its momentum? Sure. However, I think other stocks offer better risk-reward propositions.

That brings me to American Express and Jefferies Financial Group. Both stocks remain valued relatively attractively, even after their big gains this year. AmEx trades at under 19.7 times forward earnings, while Jefferies' forward earnings multiple is only 17.2. Both stocks could also benefit from deregulation anticipated by the incoming Trump administration.

Although American Express and Jefferies aren't no-brainer buys, they should continue to make money for Buffett -- and other investors -- in 2025.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful 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 they think are about to pop. If you’re worried you’ve already missed your chance to invest, 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 down in 2009, you’d have $363,593!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $48,899!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $502,684!*

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

See 3 “Double Down” stocks »

*Stock Advisor returns as of December 23, 2024

American Express is an advertising partner of Motley Fool Money. Keith Speights has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway and Jefferies Financial Group. The Motley Fool recommends Live Nation Entertainment and recommends the following options: short January 2025 $110 puts on Live Nation Entertainment. The Motley Fool has a disclosure policy.

These 3 Stocks Have Made Warren Buffett the Most Money in 2024. Are They No-Brainer Buys for the New Year? was originally published by The Motley Fool

Terms and Privacy Policy

Your Privacy Choices

Utah Privacy Notice

More Info