2 No-Brainer Warren Buffett Stocks to Buy Right Now

If you've got a pile of cash burning a hole in your pocket, consider putting it to work in the stock market. Long-term investing is a great way to build wealth, and few know this better than investing legend Warren Buffett, who has turned his once-modest holding company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), into a $1.1 trillion equity behemoth.

Below I'll discuss why Chinese electric-vehicle (EV) maker BYD (OTC: BYDDY) -- as well as shares in Berkshire Hathaway itself -- could be great buys right now.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

BYD

Since its 2003 founding in Shenzhen, China, BYD has been riding the wave of China's industrial miracle. It starting as a battery manufacturing and electronics company before pivoting to electric vehicles a few years later. Warren Buffett began buying shares in 2008 and now owns a substantial $2.5 billion worth of BYD equity, representing about 1% of Berkshire's total portfolio.

It's easy to see why he likes the company. Buffett tends to favor businesses with deep economic moats, which refers to the competitive advantage they have over industry rivals. In BYD's case, the moat is the company's vertical integration as it manufactures its own batteries at scale, enabling it to pass on cost savings to consumers.

However, BYD isn't just about low prices. The company has started to emerge as a technological leader.

In March, it unveiled a new technology capable of charging EVs in just five minutes, providing up to 249 miles of range. If this makes it into mass production, it could significantly close the convenience gap between electric cars and their gasoline-powered counterparts.

BYD's valuation is also too good to ignore. With a forward price-to-earnings ratio (P/E) of just 19.5, the shares are significantly cheaper than rival Tesla, which trade at a forward P/E of 84. Fourth-quarter profit jumped by an impressive 73% year over year to $2.1 billion.

Berkshire Hathaway

Instead of buying individual stocks, some investors may want to bet on the entire Berkshire portfolio. This move would enable greater diversification across various industries while leveraging Warren Buffett's holistic strategy and market-beating instincts.

Buffett has famously stated, "Never bet against America," referencing the country's tremendous business potential, even in the face of temporary setbacks. With multibillion-dollar positions in leading U.S. companies like Apple, Coca-Cola, and American Express, the Oracle of Omaha puts his money where his mouth is. And in terms of performance, Berkshire Hathaway has consistently beaten the S&P 500.

BRK.A Total Return Level data by YCharts.

Berkshire's edge may come from its ability to respond to changes in the macroeconomic landscape. In 2024, the holding company began raising eyebrows by selling stock and not reinvesting, ending the year with $334.2 billion in cash. Some analysts think this move may have been in anticipation of the tariff-led sell-off this year. Berkshire Hathaway is in a position to scoop up quality stocks for cheap when the dust settles.

Investors shouldn't expect Berkshire Hathaway to repeat the explosive growth it has experienced during past decades. The larger a portfolio is, the more challenging it becomes to grow. That said, the legendary holding company looks fully capable of maintaining its market-beating success.

Which stock is best for you?

BYD and Berkshire Hathaway are both excellent choices based on Warren Buffett's successful investing strategy. That said, investors who prioritize market-trouncing growth should look to BYD, due to its huge opportunity to scale its EV business globally. Berkshire Hathaway is another excellent choice, but its size and diversification make its performance more closely align with the S&P 500 average.

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

Before you buy stock in BYD Company, consider this:

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American Express is an advertising partner of Motley Fool Money. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy.