These 6 Warren Buffett Stocks Are Soaring in 2025 While the Market Is Sinking

Source The Motley Fool

"A rising tide lifts all boats," according to an often-cited adage. It stands to a reason, therefore, that an ebb tide causes all boats to fall. There are exceptions, though. An especially leaky boat will still sink even when the tide is rising. But can a boat still rise when the tide is ebbing? Yes, if we're applying this analogy to the stock market.

Warren Buffett seems to have a knack for finding stocks that perform well when the overall market is performing dismally. The S&P 500 has tumbled around 8% from its all-time high set earlier this year. However, Buffett owns several stocks that are soaring in 2025 while the market is sinking.

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Going against the grain

Which Buffett stocks are beating the market so far this year? We can start with Buffett's own Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Shares of the giant conglomerate have jumped nearly 14% year to date.

Buffett's biggest winner, by far, though, is BYD (OTC: BYDD.F) (OTC: BYDDY). The Chinese electric vehicle maker's stock has skyrocketed 47% in 2025. This performance would probably bring a smile to Buffett's long-term business partner, Charlie Munger, who died in late 2023. Munger championed Berkshire's initial investment in BYD back in 2008.

BYD isn't the only non-U.S. Buffett holding that's faring well. Shares of Latin American digital banking leader Nu Holdings (NYSE: NU) have vaulted 13% higher. British financial services company Aon's (NYSE: AON) stock is up 11%

Two other stocks in Berkshire's portfolio with technology connections have also been big winners. Wireless services company T-Mobile US (NASDAQ: TMUS) stock is up around 16%, followed closely by internet domain registry provider VeriSign (NASDAQ: VRSN) with a 15% increase.

Last, but not least, one of Buffett's favorite stocks of all time has risen by a double-digit percentage in 2025. The Coca-Cola Company (NYSE: KO), one of a handful of stocks the legendary investor has stated he planned to "maintain indefinitely," is up 11% year to date.

Why are these stocks soaring while the market is sinking?

Investors likely view some of these market-beating Buffett stocks as safe havens, which explains why they're performing well during this period of volatility. For example, Coca-Cola is a consumer defensive stock that tends to hold up quite well when the stock market falls.

Berkshire Hathaway itself has also become something of a safe haven stock. Buffett has led the company in building a cash stockpile of over $334 billion, a massive amount that he could put to work if the stock market continues to decline.

What about BYD? The Chinese EV company's business is booming. It's expanding into other global markets. BYD's new self-driving capabilities could drive growth. Meanwhile, Tesla's ongoing struggles make BYD look even more attractive.

Nu's solid gain was much better earlier in the year. The fintech stock skyrocketed as much as 35% year-to-date by early February with anticipation of continued rapid expansion. However, Nu's shares fell later in February after investors were disappointed by some aspects of its fourth-quarter results.

Aon has benefited from analyst upgrades. T-Mobile's new direct-to-cell satellite service seems to be exciting investors. And Berkshire's increase of its stake in VeriSign has made the internet stock more popular.

Should you buy these Buffett stocks?

Don't chase these Buffett stocks solely because they're soaring while the overall stock market is sinking so far in 2025. However, some of them could be attractive to certain investors.

I think BYD is worthy of consideration for aggressive growth investors. The company appears to be in a great position to dominate the EV and self-driving car markets in China and perhaps in other countries, as well. My main reservation about this stock, though, is the uncertainty surrounding potential actions by the Chinese government.

Nu is another stock that many growth investors will probably like. It has tremendous prospects in expanding digital banking in Latin America, especially in Mexico and Colombia.

Coca-Cola remains a great pick for income investors. It's a Dividend King with a decent forward dividend yield of nearly 3%.

I also view Berkshire Hathaway as a perennially good stock to buy. Granted, the conglomerate's valuation is a bit high with shares trading at 25.7 times forward earnings. However, Berkshire should be able to come out of a market and potential economic downturn smelling like a rose.

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

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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