These Were My 3 Best-Performing Stocks in the First Quarter of 2025. I'm Buying More of 1 of Them in April.

As of April 1, the S&P 500 is down by about 9% from its February 2025 peak, and the Nasdaq is firmly in correction territory, down by about 14%. To be sure, I have some stocks in my portfolio that are down sharply, including one that has declined by 36% this year.

On the other hand, after doing a recent portfolio checkup, I was surprised to find out that 19 of my stocks (out of about 50) are actually higher than they were at the beginning of the year.

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In fact, my top three performers (excluding one stock that's up because it's being acquired) are all higher by 17% or more through the first quarter of the year. Here's a rundown of why they have performed so well and why I'm planning to buy more shares of one of them in April.

My three best-performing stocks of 2025 (so far)

We're only three months into 2025, but three of my stocks have already moved sharply higher. In order from best performance to least, here's a rundown of my top stocks of 2025 and why each one has done so well.

1. Sea Limited

Sea Limited (NYSE: SE) is the best-performing stock in my portfolio so far in 2025, with shares up by 24% through the end of Q1. And this is on top of a 160% gain in 2024.

Sea Limited spent 2024 becoming a much more profitable business while also posting incredible growth numbers. In Q4 2023, Sea Limited reported a $112 million net loss. In Q4 2024, the company reported $238 million in net income. And it wasn't just margin improvement; Sea's revenue jumped by nearly 40% year over year, and there was fantastic growth in all three of Sea's businesses. In a nutshell, Sea has reported stronger results quarter after quarter, and its stock has risen rapidly along with the business.

2. EPR Properties

EPR Properties (NYSE: EPR) is a real estate investment trust, or REIT, that specializes in experiential real estate. Specifically, it owns a portfolio of real estate occupied by movie theaters, water parks, eat-and-play businesses, ski resorts, and more. And the stock is up by more than 18% for the year despite the market correction.

Although EPR's latest earnings report was strong, with better-than-expected revenue and funds from operations (FFO) -- the real estate version of "earnings" -- there wasn't anything spectacular that would explain a nearly 20% move in the stock.

Instead, EPR, like most other real estate investment trusts, is highly sensitive to interest rates. Since the beginning of 2025, the 10-year Treasury yield has fallen by more than 40 basis points, and this has served as a catalyst for real estate. In fact, the real estate sector as a whole is higher for the year, and EPR has been one of the biggest winners.

3. Berkshire Hathaway

Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) isn't exactly known for its large price movements in relatively short time periods, but here we are. Berkshire gained 17% in 2025's Q1, making it my third-best performer.

There are a few good reasons why Berkshire is higher. For one thing, its Q4 earnings report was quite strong. Second, and perhaps most significant, is that Berkshire owns a collection of recession-resistant businesses and is often seen as a "safe stock" to own in turbulent market environments. Third, with an unprecedented $334 billion in cash on its balance sheet, Berkshire is better positioned than any other publicly traded company to take advantage of any economic or stock market weakness.

Berkshire has a long-established track record of outperforming the market during turbulent times, and it appears that's exactly what is happening again.

Which is the best buy now?

There's a solid buy case to be made for any of these three stocks right now. Sea Limited has roughly tripled in price since the beginning of 2024, but the gain is completely justified by how well its business is doing. Lower interest rates not only put upward pressure on high-yield stocks like EPR but make borrowing costs lower and could help the company get back into growth mode.

However, Berkshire Hathaway stands out to me right now, even with shares approaching their all-time high. After backing out its stock portfolio and massive cash position, Berkshire's operating businesses trade for about 15 times earnings, and its financial flexibility is an amazing asset in tough times. In short, I'm inclined to play a little bit of defense in my portfolio, so even though Berkshire is already one of my largest stock investments, I plan to buy more shares as we head into the second quarter.

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Matt Frankel has positions in Berkshire Hathaway, EPR Properties, and Sea Limited. The Motley Fool has positions in and recommends Berkshire Hathaway and Sea Limited. The Motley Fool recommends EPR Properties. The Motley Fool has a disclosure policy.