Got an extra $1,000 you would like to put to work but don't quite know how? Don't make it complicated. Just poach a pick or two (or several) from one of the world's best-known and most-proven stock pickers. He's Warren Buffett, of course. There's a reason he has been able to reliably lead Berkshire Hathaway to market-beating performances.
With that as the backdrop, here's a closer look at three of Berkshire's holdings that are solid prospects for you at this time, in no particular order.
Coca-Cola
It's such a commonly suggested Buffett pick that it has almost become a cliché. Nevertheless, there's good reason Coca-Cola (NYSE: KO) continues to be highlighted 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 like Gold Peak tea, Minute Maid juice, Dasani water, and Powerade sports drinks (to name just a few) also mean this beverage behemoth always has something to sell regardless of consumers' ever-changing tastes.
That doesn't mean things are always easy. Coke shares have fallen 16% from their early September high in response to a small but alarming drop in the total amount of product sold (as measured by volume) during the company's fiscal third quarter of last year.
Operating income and net earnings fell even more during the three-month stretch, with no indication that the headwind was likely to abate during the quarter ending in December.
This is a timeless business, though, and Coke's brands seem just as timeless. You'll simply need to give this stock enough time for the company to prove it's worth the wait.
Buffett has certainly done so 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 chief reason Buffett's such a fan -- has more than tripled during this time, extending an annual growth streak of 62 years.
Newcomers will be stepping in while the forward-looking dividend yield stands at just under 3.2%.
Apple
Just as much as Coca-Cola, Apple(NASDAQ: AAPL) is a frequently suggested Buffett pick. And as with Coke, that's for a good reason. Apple is another one of those timeless stalwarts with a well-deserved reputation for performance.
That's not necessarily been easy to believe of late. Revenue has been stagnant since mid-2022, while sales of its flagship iPhone (as measured by revenue as well as unit sales) have been just as stagnant for just as long.
Buffett and his lieutenants have also been paring back the size of Berkshire's stake in Apple of late, shedding roughly 600 million shares just since early last year. It certainly doesn't seem 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 looked like unrealized stock gains might become subject to income taxation. He may have simply been thinking strategically.
And either way, Berkshire's $70 billion stake in Apple is still its single biggest position, accounting for about one-fourth the value of all the conglomerate's total stock holdings combined.
The company may be on the cusp of significant and prolonged growth. Near the end of last year, Apple launched an AI-powered tool that is run directly from its newer devices. That is as opposed to being run in the cloud, as most similar platforms like ChatGPT or Alphabet's Gemini typically are 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 in the ever-changing AI arena is. But given IDC's expectation that the worldwide AI platform market will grow at an annual pace of more than 40% through 2028, the company isn't wrong to throw its hat into the ring and capture whatever growth it can.
BYD
Lastly, add BYD(OTC: BYDD.F) to your list of Warren Buffett stocks to buy with $1,000 right now. If the name doesn't ring a bell, you might be more familiar with it than you realize. The electric vehicle (EV) company has been outselling industry-leader Tesla from time to time since late 2023.
Although BYD makes other things, most of its top line comes from its affordable EVs and related products. It's also one of a small handful of foreign stocks that the typically pro-USA Buffett likes, and the only Chinese stock among Berkshire's current holdings.
This is telling in and of itself -- but not necessarily surprising in light of BYD's past and projected growth. Even in the midst of global economic lethargy (particularly in and around China), this company's top line is expected to grow by 24% for the entirety of 2024, followed by revenue growth of nearly 21% for the fiscal year now underway.
This pace of growth could persist for a long, long while, too. Although U.S. consumers' euphoria regarding EVs is cooling, actual global demand is still growing and is likely to continue doing so.
BloombergNEF, which tracks the lower-carbon economy, predicts total worldwide sales of EVs are going to nearly double their current levels by 2027, reaching 30 million units, en route to annual sales of 73 million in 2040. As BYD ventures further and further outside of its home turf during this stretch (perhaps eventually including the United States?), look for it to capture at least its fair share of this growth.
And don't worry about BYD's over-the-counter listing (as opposed to a more conventional listing on an exchange). With a $100 billion market capitalization, it's not your usual OTC stock.
Securing U.S. exchange-based stock listings can be a logistical hassle as well as needlessly costly for many foreign companies. It's certainly not a problem for Buffett and Berkshire, which presently hold nearly $2 billion worth of this over-the-counter ticker.
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 $341,656!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $44,179!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $446,749!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. James Brumley has positions in 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 a disclosure policy.
