Warren Buffett’s portfolio is always worth watching, but especially now. With markets recalibrating after a tough macro stretch and investors seeking quality over hype, several of Buffett’s holdings stand out—both for their staying power and their potential. Below, we highlight three stocks Berkshire Hathaway is backing that could be worth a closer look right now, and one name you might want to avoid despite its deep value appearance.
Chevron (NYSE: CVX) – The Energy Giant with a 38-Year Dividend Streak
In the energy space, Buffett has two high-conviction picks—Chevron and Occidental. While Occidental (OXY) might attract those seeking a riskier rebound story, it’s Chevron that stands out for its long-term reliability. Chevron has increased its dividend annually for 38 consecutive years. Through the dot-com crash, the 2008 financial crisis, and even the 2020 pandemic, Chevron continued to raise its payout, a testament to both management discipline and its diversified operations across the energy value chain.
Currently trading at $144.79 (as of June 12, 2025), Chevron is yielding a healthy 4.6%. The stock has been weighed down recently by a sluggish energy sector and political complications surrounding its investments in Venezuela. It’s also navigating the acquisition of Hess, a deal some investors are still cautious about. But none of these issues appear to threaten its long-term prospects. Buffett’s ownership stake and Chevron’s fortress balance sheet suggest this is still one of the most dependable income-generating stocks in the sector.
American Express (NYSE: AXP) – A Top-Tier Play on Premium Spending
Buffett has been holding American Express for decades, but its position in the Berkshire portfolio has quietly grown to become its second-largest equity holding. As of the most recent disclosure, Berkshire holds 151.6 million shares of AmEx, valued at $45.6 billion—or about 16% of the portfolio. That represents more than 21% ownership of the company itself.
American Express isn’t just another card issuer. Unlike Visa and Mastercard, which simply facilitate payments between banks and merchants, AmEx is vertically integrated—it issues cards, processes payments, and manages the perks and loyalty ecosystem that keeps customers spending. That business model has translated into strong margins (60.89%) and a stickier customer base, especially among affluent users who are willing to pay steep annual fees for elite rewards.
Despite economic headwinds, AmEx reported 6% year-over-year growth in both revenue and earnings in Q1 2025. Analysts expect that pace to accelerate as macro pressures ease. The current stock price of $297.63 is slightly above the consensus target of $294.46 and trades at roughly 20x this year’s expected earnings—not a deep value by traditional metrics, but as Buffett has famously said, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
Domino’s Pizza (NASDAQ: DPZ) – A Surprise Buffett Pick, But a Profitable One
When Berkshire started building a position in Domino’s Pizza in late 2024, it raised some eyebrows. It’s a small holding—just 2.6 million shares worth about $1.2 billion—but any Berkshire investment typically signals long-term belief in the underlying business. In Domino’s case, the fundamentals speak for themselves. With over 21,300 locations and decades of uninterrupted profitability, this isn’t just a pizza chain—it’s a finely tuned logistics and delivery machine.
Domino’s has weathered shifts in food delivery trends better than most. Its no-frills, low-overhead business model makes it resilient to wage inflation and supply chain volatility. Gross margins sit near 40%, and its pricing flexibility helps preserve profitability even when input costs spike. At $449.13 per share, the stock trades well below its 52-week high of $538.37, offering potential upside as the restaurant space stabilizes. And with a 1.4% dividend yield on top of consistent EPS growth, Domino’s offers a rare mix of stability and growth.
Avoid: Kraft Heinz (NASDAQ: KHC) – A Merger That Never Delivered
Buffett is known for patience, but his stake in Kraft Heinz has tested it. Berkshire still holds 326 million shares of the company, but the stock has lost over 70% of its value since its 2017 peak and now trades near multi-year lows at $26.41. With a 6.06% dividend yield, it might seem like a bargain. But the payout has been stuck at $0.40/share since being slashed in 2019, and the company has failed to deliver growth or clarity on when things might turn around.
The root issue dates back to the 2015 merger of Kraft and Heinz, which Buffett helped orchestrate. The thesis—greater scale and higher margins in a stable consumer staples sector—hasn’t played out. Instead, Kraft Heinz has struggled with cultural integration, changing consumer tastes, and increased competition from nimble, niche brands. There’s still brand equity in its portfolio, but the execution simply hasn’t been there. Buffett may be holding on for reputational reasons at this point. Investors without that legacy baggage may want to steer clear.
With Buffett’s long view in mind, each of these names tells a different story: Chevron is a bet on durability and income, AmEx thrives on a premium consumer niche, and Domino’s keeps showing how consistency and operational efficiency pay off. Kraft Heinz, however, is a reminder that even the best investors occasionally miss the mark—and knowing when to sidestep a value trap is just as important as knowing when to buy.
