Warren Buffett has an unrivaled track record of creating piles of money. From 1965 through 2023, Buffett's knack for spotting value that Wall Street overlooks has grown the value of Berkshire Hathaway stock by 4,384,748%.
Thanks to Form 13F filings with the Securities and Exchange Commission, investors can follow along with every stock Buffett buys (and sells) on behalf of Berkshire Hathaway. Coca-Cola (NYSE: KO), Domino's Pizza (NASDAQ: DPZ), and Amazon (NASDAQ: AMZN) are three stocks from its list of holdings that are great buys now, according to these Fool.com contributors.
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Jennifer Saibil (Coca-Cola): Warren Buffett has been on a selling spree, but Coca-Cola is one stock he has said he would never sell. While he's cut his position in Apple, another stock he's said he'd never sell, by more than half over the past few months, he hasn't sold even a single share of Coca-Cola.
Some investors might find that mind-boggling since Coca-Cola hasn't been a market-beater over the past few years. However, it offers other benefits that Buffett prizes, which make its long-term potential hard to beat. Buffett has praised its global brand name that "travels." People all over the world recognize and drink its beverages, and it has carved out its niche in the economy. Its popularity gives it pricing power, and it has remained steadily profitable despite the inflationary atmosphere. It just reported excellent fourth-quarter results, including a 14% year-over-year increase in organic revenue and a 12% increase in comparable earnings per share (EPS).
Something else Buffett loves about Coke is its dividend. Coca-Cola is a Dividend King and has raised its dividend annually for the past 62 years. That's an almost unbeatable track record, indicating incredible reliability. The dividend yields 3% on average, but it yields 2.8% at the current price because Coca-Cola stock is finally beating the market this year. It's up nearly 12% this year, outdoing the S&P 500's 4% gain.
Coca-Cola is in a great position as 2025 gets started. Volume is up, which means that not all of its growth is coming from pricing action, though that's also important. The company is leveraging its massive global distribution system to meet consumer needs with products and packaging that suit each region, filling outlets with Coke-filled coolers, and finding innovative ways to keep costs down. 2025 could be a huge year for Coca-Cola, and its dividend is always in style.
Jeremy Bowman (Domino's Pizza): In many ways, Domino's Pizza has the makings of a classic Warren Buffett stock. The company is the world's biggest pizza chain with a global presence and a franchise business model that should be a reliable cash flow generator for decades to come.
Domino's is one of Berkshire Hathaway's newest holdings, but you can see why Buffett's conglomerate has taken a shine to the restaurant stock.
The company has proven it has a lot of whitespace to grow into as it continues to open up new restaurants around the world. Over the last four years, it added 805 new stores, 637 of which were in international markets. That brings its grand total to 21,002.
Domino's also has an outstanding track record when it comes to same-store sales growth, as it's reported positive same-store sales in nearly every quarter in international markets for the last 25 years and has a similar track record in the U.S. over the last 15 years. In fact, it's on track for its 31st year of same-store sales growth in international markets, a feat few other restaurant chains could match.
The company introduced its Hungry for MORE strategy last year, and it seems to be paying off, focusing on "Most Delicious Food, Operational Excellence, Renowned Value, and Enhanced by Best-in-Class Franchisees and Team Members." Through the first three quarters of the fiscal year, same-store sales rose 4.5% in the U.S. and 1.1% internationally.
Finally, Domino's Pizza trades at a reasonable price-to-earnings ratio of 29, making the stock an appealing buy for long-term investors.
John Ballard (Amazon): Berkshire Hathaway has held a position in Amazon stock since 2019. The shares have doubled in the past five years as the e-commerce leader continues to deliver solid revenue growth and improve profitability.
The Amazon investment might have been made by one of Buffett's investing deputies who oversee a small portion of the company's equity portfolio. However, it has all the qualities of a business that Buffett typically looks for in a business.
Amazon has the strongest brand of any online retailer. It is a go-to shopping destination for millions of Prime members. The company's retail business, including online and physical stores, hauled in $268 billion in revenue in 2024.
Given that the global e-commerce market is expected to reach $8 trillion by 2027, according to Statista, Amazon can grow for a long time. Management continues to widen the company's competitive moat by offering better value, including the recent launch of Amazon Haul on its mobile app and launching Rufus, a shopping assistant powered by artificial intelligence (AI), to make it easier for customers to find what they want.
Amazon can invest in these new technologies while reporting a growing profit, which reached a record $59 billion last year on $637 billion of total revenue. Non-retail services like advertising and cloud computing are also key drivers of Amazon's improving margins, and these are two of the company's fastest-growing businesses.
Amazon stock continues to trade at a multiple of sales, earnings, and cash flow that is within its historical trading range. It seems reasonably priced, and that should lead to more market-beating gains in the coming years.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jennifer Saibil has positions in Apple. Jeremy Bowman has positions in Amazon. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Domino's Pizza. The Motley Fool has a disclosure policy.