Many of the Oracle of Omaha’s stock picks are also beneficial for everyday investors.
Warren Buffett’s method of selecting stocks—shopping and holding—might seem dull to some, but his results speak for themselves. His company, Berkshire Hathaway, has certainly outperformed the S&P 500 since he took charge back in 1970. Investors, however, need a good dose of patience, as much of his success relies on time.
Even today, Buffett is as skilled at his craft as ever. With his expected resignation as Berkshire’s CEO approaching, it might be wise to consider his stock selections sooner rather than later.
Let’s explore three of Berkshire Hathaway’s key holdings.
Apple
If you own shares in Apple (AAPL), you likely know it’s been a tough year for the company. The anticipated boom for AI-driven iPhones and related technologies has not panned out exactly as hoped. Apple’s offerings in AI have disappointed, and consumers seem reluctant to fully engage with these advanced tools. As a result, the stock has been declining since its peak last December, despite some recovery from April’s low.
Berkshire has been reducing its stake in Apple since early last year. It’s uncertain if Buffett and his team decided to offload most of their Apple shares, largely because of the challenges with AI, but it’s clear they no longer feel comfortable holding such a significant position in the company.
On a brighter note for Apple supporters, analyst Daniel Ives from Wedbush Securities recently mentioned that pre-orders for the iPhone 17 are reportedly up 5%-10%. He estimates that around 20% of Apple’s 1.5 billion global users haven’t upgraded their phones in the last four years.
Similarly, analysts from both JPMorgan and Morgan Stanley seem optimistic about Apple’s upcoming changes in digital assistants. It’s possible that consumers have been hesitant about adopting first-generation AI technology, preferring to wait and see how it performs. Even the most dedicated Apple fans might be wary of the typical hiccups that accompany new tech.
Ultimately, after a challenging period, Apple seems poised to regain its former strength. Despite recent sales, it still constitutes over 20% of Berkshire Hathaway’s publicly traded portfolio.
Kroger
Kroger (KR) may not be a household name, but that doesn’t mean it isn’t a solid investment. The grocery business is incredibly mature and competitive, after all.
Growth isn’t the only way to succeed; value stocks can be rewarding, especially those that offer dividends. Kroger is among the largest grocery retailers, operating 2,731 stores and catering to over 11 million customers daily. Last year, they posted impressive net operating profits exceeding $3.8 billion.
Now, you might think of groceries as a tired industry, but it’s actually evolving. Kroger has modernized its operations significantly, with same-store sales up by 3.4% year-on-year in the second quarter of 2025, and online sales increasing by 16%. While it faces stiff competition from companies like Walmart and Amazon, e-commerce now makes up about 10% of Kroger’s revenue.
Moreover, Kroger has found innovative ways to monetize its online presence through advertising, allowing national brands to pay for more prominent placements on its website.
In terms of long-term value for shareholders, Kroger’s approach is noteworthy. While it has a relatively modest future yield of 2%, dividends have been raised consistently for 19 years, with an average annual growth rate of 13%. Additionally, ongoing stock buybacks have reduced the number of outstanding shares significantly. This has led to outperforming investments in Kroger stocks compared to S&P 500 index funds over the past two decades when factoring in buybacks, reinvested dividends, and price appreciation.
BYD Company
Lastly, consider investing in BYD Company (BYDDY), one of Buffett’s stock choices that might also fit in your portfolio.
You might not be familiar with the name, but you’ve likely heard about it in relation to electric vehicles (EVs). Remember those major players like Tesla? BYD is right up there, though it has primarily catered to the Chinese market until now.
That’s changing, however. Although their EVs are not available to purchase in the US yet, registrations in Europe surged by over 200% recently. BYD is confident about this growth and aims to produce all EVs for European customers by 2028, with plans to sell half of its vehicles outside of China by 2030.
While interest in EVs may not be overwhelming in the US, the International Energy Agency predicts a fourfold increase in the number of global EVs by 2030.
This isn’t the typical stock Buffett would choose; he usually highlights American companies and their ingenuity. Berkshire doesn’t hold a large stake in BYD, with 162.6 million shares valued around $2.3 billion. However, Buffett’s continued investment since his unusual initial deal in 2008 suggests some strong potential worth noting.
