3 Warren Buffett Stocks to Help Set Up Your Portfolio for 2025

Warren Buffett's talent for growing piles of money lies in finding competitively positioned businesses that can weather the occasional hiccup in the economy and keep growing. With economic uncertainty weighing on the stock market, investors can find solid stocks to buy in the portfolio of Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B).

The following stocks are outperforming the major market indexes year to date. These are solid businesses that can protect and grow your money for years to come.

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1. Coca-Cola

Shares of Coca-Cola (NYSE: KO) are up 9% year to date (as of Monday morning) and offer a high dividend yield. It's one of Berkshire's longest-held investments, with Buffett originally buying the stock in the aftermath of the 1987 Black Monday crash. Coke's business is relatively immune to higher supply chain costs resulting from tariffs, which could benefit the stock.

Coca-Cola operates a vast distribution network that is built to serve local markets around the world. The majority of its beverages consumed domestically are made in the U.S., which helps Coca-Cola sidestep some of the costs from tariffs on imported goods. To mitigate the impact of potential aluminum tariffs, Coca-Cola management said it is exploring strategies like shifting to more plastic bottles and potentially sourcing aluminum domestically.

Coca-Cola serves up over 2.2 billion servings of its products to consumers worldwide every day. It offers a range of beverage brands across water, tea, and juices to meet demand for almost any occasion.

It's an iconic brand that generates high returns on capital, healthy profit margins, and steady sales volumes. Last year, Coca-Cola earned nearly $11 billion in net income on $47 billion of revenue, and it paid out three-quarters of its earnings in dividends, bringing the forward yield to 2.88%.

Coke stock has been a constant in Berkshire's portfolio for decades, and it should hold up relatively well against the broader market in 2025.

2. Kroger

Kroger (NYSE: KR) is another "defensive" stock worth considering. The stock is up 7.5% year to date (as of Monday morning) but still trades at a fair valuation and pays an above-average dividend yield. Berkshire held 50 million shares of the grocery chain at the end of 2024.

Kroger navigated the high inflation well over the past few years and should continue to deliver for investors in 2025. The most exposure Kroger has to tariffs is fresh produce that is sourced from outside the U.S., but even in that category, the impact on sales is small.

This is one of the largest grocery store chains, with over 2,700 stores. These stores are located within a close distance of 62 million households. It focuses on keeping prices as low as possible, which keeps its profit margin at razor-thin levels, but these low margins also serve as a strong deterrent to competitors.

Kroger earned $2.6 billion in net income on $147 billion of revenue last year. Selling everyday essentials has led to steady sales and profits for many years, and it distributes a third of annual earnings to shareholders in dividends. The stock's forward yield currently sits at an above-average 1.8%.

With Kroger targeting margin expansion in 2025 from growing sales of private label brands, the stock offers solid value trading at a forward price-to-earnings ratio of 15.

3. Berkshire Hathaway

Buffett's largest personal holding is a no-brainer investment. Berkshire Hathaway owns an impressive collection of businesses, in addition to a $271 billion stock portfolio. From 1965 through the end of 2024, Buffett guided Berkshire to a return of over 5,500,000%, and the stock continued to hit new highs in the first quarter this year.

Berkshire owns dozens of businesses across several industries, including candy (See's Candies), insurance (GEICO), business jets (NetJets), fast food (Dairy Queen), railroads (Burlington Northern Santa Fe), and energy (MidAmerican Energy). Altogether, its businesses generate tremendous cash flows that Buffett can reinvest in other opportunities as he sees fit. Berkshire's operating earnings totaled $47 billion in 2024.

The exposure to broad swaths of the economy means Berkshire is not immune to the impact of a recession on its financial results. But that risk hasn't prevented the stock from climbing 17% in the first quarter. A falling stock market is a win-win for Berkshire, since it could turn up a bargain for Buffett to pounce on. Berkshire entered 2025 with over $330 billion in cash ready to put to work.

While the 94-year-old Buffett won't be around forever, investors should fear not. Buffett has tapped Greg Abel to take over as CEO, and he has previously said Abel is ready to take over tomorrow if necessary. Abel was instrumental in growing Berkshire Hathaway Energy into one of the leading energy companies in the U.S. Investors should expect Abel's capital allocation skills to guide Berkshire stock to more new highs over the long term.

Should you invest $1,000 in Coca-Cola right now?

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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.