Should You Buy Warren Buffett's 3 Best-Performing Stocks So Far This Year?

Keith Speights, The Motley Fool

Sat, Apr 19, 2025, 3:45 AM 4 min read

Many investors are anxious these days, with the stock market going topsy-turvy. I doubt Warren Buffett is one of them, though. The legendary investor is worth billions more now than he was at the beginning of the year, with Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) stock up nearly 16% year to date.

However, some of Berkshire's holdings have performed even better than that. Here are Buffett's three best-performing stocks so far this year -- and whether they're good picks to buy now.

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1. BYD

Shares of BYD (OTC: BYDD.F) (OTC: BYDDY) have skyrocketed nearly 40% in 2025. That performance makes the Chinese electric vehicle (EV) maker Buffett's biggest winner of the year so far.

Buffett's longtime business partner, Charlie Munger, who died in November 2023, championed BYD years ago. Munger convinced Buffett to initiate a position in the up-and-coming EV maker. Just nine months before his death, Munger proclaimed, "I have never helped do anything at Berkshire that was as good as BYD, and I only did it once."

BYD has been sizzling hot this year for two key reasons. First, the company introduced new self-driving technology that integrates artificial intelligence (AI) capabilities from Chinese tech company DeepSeek. Second, BYD benefited from Tesla's ongoing troubles, including the Elon Musk-led EV maker's biggest quarterly sales decline in its history.

Is BYD a good stock to buy now? Maybe so. Despite the strong gains, BYD's price-to-earnings-to-growth (PEG) ratio is only 0.92. Any PEG ratio below 1.0 is typically seen as an attractive valuation.

The main knock against BYD is the potential for interference by the Chinese government. Investors who are willing to accept that risk could like this high-flying stock.

2. VeriSign

VeriSign (NASDAQ: VRSN) ranks as Buffett's second-best-performing stock of 2025. Shares of the internet domain registry provider have soared close to 21% year to date.

Buffett (or one of his two investment managers, Todd Combs and Ted Weschler) must have seen something he liked about VeriSign in late 2024. Berkshire increased its position in the stock on Dec. 31, 2024, and bought even more shares in the first few trading days of 2025.

Investors considering VeriSign will undoubtedly like the company's monopoly in issuing ".com" internet domains. In November 2024, VeriSign extended its agreement with the Internet Corporation for Assigned Names and Numbers (ICANN) to be the only registry operator for the ".com" domain through Nov. 30, 2030.

I'm a little hesitant to buy this stock, though. VeriSign trades at 28.7 times forward earnings. Its earnings growth doesn't justify such a premium valuation, in my view.

3. T-Mobile US

T-Mobile US (NASDAQ: TMUS) is running neck-and-neck with VeriSign for the No. 2 spot among Buffett's stocks. Shares of the wireless services provider have jumped roughly 20% year to date.

Nearly everything seems to be going T-Mobile's way. The company's service revenue increased 6% year over year in the fourth quarter of 2024, with its earnings vaulting 48% higher. T-Mobile delivered the strongest customer growth in the industry in postpaid accounts, prepaid accounts, and high-speed internet. It tied its lowest-ever postpaid phone churn in Q4 as well. In January, Ookla named T-Mobile as the fastest network in the U.S.

T-Mobile has also been busy making business development deals this year. In March, the company completed its acquisitions of adtech innovators Vistar Media and Blis. Earlier this month, T-Mobile and EQT closed on their joint venture to acquire fiber-to-home provider Lumos.

Is T-Mobile stock still a buy? Its valuation is a little high, with shares trading at 25 times forward earnings. However, I think long-term investors should find T-Mobile attractive.

Should you invest $1,000 in BYD right now?

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Keith Speights has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway, EQT, Tesla, and VeriSign. The Motley Fool recommends BYD Company and T-Mobile US. The Motley Fool has a disclosure policy.

Should You Buy Warren Buffett's 3 Best-Performing Stocks So Far This Year? was originally published by The Motley Fool

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