Act Now: Buffett-Approved Picks Are Shrinking
Warren Buffett’s departure as chief executive and chief stock-picker of Berkshire Hathaway at the end of last year sent ripples through the investment world. Even though the pool of Buffett-approved stocks is now dwindling, those remaining in the portfolio are still steeped in his philosophy of value investing. For investors looking to ride the coattails of one of history’s greatest investors, the time to act is now. Here are three compelling picks from Berkshire Hathaway’s portfolio that deserve your attention.
Amazon: The E-Commerce Behemoth
Buffett has historically been wary of technology stocks, often citing their complexity as a deterrent. But when it comes to Amazon (AMZN), he made an exception. Berkshire’s position in this e-commerce giant consists of 10 million shares, worth about $2.4 billion. While this represents only a small fraction of Amazon (roughly 0.1%), it highlights Buffett’s interest in the consumer ecosystem that the company has built.
With over 200 million Amazon Prime members in the U.S. alone, it’s clear that the retail giant is doing something right. In 2024, Amazon sold a staggering $530 billion in goods and services, marking a 10% growth from the previous year. Analysts predict similar growth will continue into 2025.
Amazon’s revenue stream is diverse, but its cloud computing division, Amazon Web Services (AWS), is particularly noteworthy. Contributing about 60% to the company’s bottom line, AWS revenue increased by 18% year-over-year in the first three quarters of 2025. This aligns with Buffett’s preference for companies with a strong competitive moat. If you’re looking for a well-run company that seems poised for growth, Amazon checks all the boxes.
Amazon Key Data
- Market Cap: $2.6T
- Current Price: $243.01
- 52-week Range: $161.38 – $258.60
- Gross Margin: 50.05%
Constellation Brands: Navigating the Alcohol Market
In what may seem like a counterintuitive move, Berkshire Hathaway has increased its position in Constellation Brands (STZ), the parent company of popular beer brands like Modelo and Corona, even as alcohol consumption in the U.S. reaches a multidecade low. Why is this happening?
For one, when consumers choose to drink, they tend to opt for premium brands—the kind Constellation specializes in. This has created a unique opportunity despite the overall decline in alcohol consumption. Recent insights suggest that while spending on alcohol may be decreasing due to budgetary constraints, the experience of consuming alcohol is not likely to vanish entirely.
The standout aspect of Constellation is its high-quality portfolio, which plays well during economic recoveries. Past performance shows that as the economy stabilizes, alcohol sales often rebound. Industry experts, including those from competing firms, suggest that any current downturn is likely to be cyclical. As inflation eases and disposable incomes rise, premium brands can expect an uptick in sales.
Constellation Brands Key Data
- Current Price: $XX.XX
- Market Trends: Focus on premium brands
Occidental Petroleum: Riding the Oil Wave
If you’re feeling adventurous and have $3,000 to invest, consider Occidental Petroleum (OXY). This stock offers a more traditional investment in a renowned Berkshire portfolio, making up about 27% of the company. Berkshire’s stake in Occidental consists of roughly 264.9 million shares valued at nearly $12 billion, marking it as one of the conglomerate’s top holdings.
While Buffett is known for his inclination toward simpler industries, he’s also aware that the transition to renewable energy is a long journey. According to the International Energy Agency, the world won’t reach "peak oil"—the point at which oil consumption stops growing—until 2050. Meanwhile, global demand is expected to remain, providing significant opportunities for profit in the oil and gas sector.
The volatility of crude oil prices offers both risks and rewards for investors. Oil companies like Occidental have a history of correcting overproduction through strategic cuts. As energy prices stabilize, this could provide a solid return for those willing to sit tight through the turbulence.
Occidental Petroleum Key Data
- Market Cap: $40B
- Current Price: $44.87
- Dividend Yield: 2.15%
By focusing on these Buffett-approved picks, investors have a chance to align their portfolios with the strategies of one of the most successful investors of all time. Whether focused on e-commerce with Amazon, navigating the alcohol market with Constellation Brands, or diving into energy investments with Occidental Petroleum, there are opportunities to be seized. Don’t wait—capitalize on these investments while Buffett’s influence is still in play!
