Three Indispensable Shares that Billionaire Warren Buffet Anticipates Owning by 2025
In an impressive year for Wall Street, billionaire Warren Buffett's Berkshire Hathaway saw its shares soar an impressive 33.4% through November 27, marking its best annual return since 1998. While Buffett has been selling stocks in the market, his Q3 2024 investments reveal an interest in three unstoppable stocks for 2025.
The first one, interestingly, is a departure from his usual preference for Berkshire Hathaway. Instead, Buffett piled into Domino's Pizza, a move driven by his knowledge of consumer-buying habits. Domino's Pizza, which attracts cost-conscious consumers and offers food and beverages purchased in all economic climates, has a reputation for trust with consumers and top-notch execution of its strategic initiatives. While its valuation might be a bit aggressive, Domino's is on track for 31st consecutive years of international same-store sales growth.
Another unstoppable stock that Buffett has invested in significantly is Occidental Petroleum. With Berkshire Hathaway buying over 255.2 million shares of Occidental, it's clear that Buffett sees potential in the integrated oil and gas industry, especially given the current macro factors working in its favor. With Occidental generating a high percentage of its sales and cash flow from drilling, a surge in crude oil price would lead to an outsized bottom-line benefit for the company.
Lastly, Buffett's portfolio for 2025 includes property and casualty insurer, Chubb. Although the company's stock received 'confidential treatment' until May 15, Buffett's affinity for financial stocks and their premium pricing power, coupled with Chubb's focus on high-earner homeowners, make this a lucrative addition to his portfolio. However, Chubb will face challenges such as the impact of falling Treasury yields on interest income and its current valuation premium to book value.
In conclusion, Warren Buffett's Q3 2024 investments in Domino's Pizza, Occidental Petroleum, and Chubb highlight his interest in consumer brands, energy companies, and financial stocks for 2025.
In his Q3 2024 investments, Warren Buffett allocated a significant portion of his funds towards financing the purchase of Occidental Petroleum's shares, demonstrating his belief in the potential of the integrated oil and gas industry. Furthermore, to diversify his portfolio, Buffett decided to invest money in Chubb, a property and casualty insurer, drawn to its premium pricing power and focus on high-earner homeowners.
