When Warren Buffett adds to Berkshire Hathaway’s portfolio, it’s always worth a closer look. Buffett’s legendary investing success stems from identifying high-quality businesses with strong competitive advantages, disciplined management, and long-term growth potential. With recent SEC filings revealing Berkshire’s latest moves, here are four stocks that Buffett is betting on, each offering unique opportunities for investors.
American Express (NYSE: AXP)
“A Brand That Defines Prestige and Reliability”
American Express has been a cornerstone of Berkshire Hathaway’s portfolio for over 30 years, growing from an initial $1.3 billion investment to a staggering $41.1 billion today. What makes AmEx special is its unmatched brand association with luxury and exclusivity, bolstered by products like the Black Card and the Platinum Card, which offer premium perks such as airport lounge access and travel benefits.
The company is well-positioned for both robust economic conditions and inflationary periods, as rising prices naturally increase consumer spending—a core driver of AmEx’s revenue. With a loyal customer base and a reputation that’s hard to replicate, American Express continues to be a solid long-term investment choice.
Chubb (NYSE: CB)
“Disciplined Underwriting and Decades of Dividend Growth”
Insurance has long been a favorite sector for Buffett, and Chubb is the latest addition to this category in Berkshire’s portfolio. Known for its disciplined underwriting practices, Chubb has consistently balanced risks while pricing its policies effectively, giving it a distinct edge in a competitive industry. Over the past 31 years, Chubb has raised its dividend annually, reflecting the company’s strong cash flow and operational stability.
Buffett’s interest in insurance dates back to his early days with National Indemnity and Geico, and Chubb fits perfectly into this legacy. Its wide-ranging insurance products and strong financial position make it a compelling option for long-term investors seeking consistent returns.
Sirius XM Holdings (NASDAQ: SIRI)
“A High-Risk, High-Reward Turnaround Play”
Sirius XM has faced a tough year, with its stock down over 50%, yet it has captured the attention of Berkshire Hathaway, now the company’s largest shareholder. After a 1-for-10 reverse stock split and separation from Liberty Media, Sirius has simplified its corporate structure and raised its stock price to attract institutional investors.
Despite declining subscriber numbers and high debt, Sirius continues to focus on its core subscription business, securing exclusive advertising and distribution deals to drive future growth. With a long-term goal of increasing subscribers by 25% and boosting free cash flow by 50%, the company offers a favorable risk-reward balance for investors willing to bet on its turnaround.
Citigroup (NYSE: C)
“A Deep Value Play in Banking”
Citigroup offers a compelling value proposition, trading at a significant discount to its tangible book value (TBV). While its peers like Wells Fargo and Bank of America trade well above their TBV, Citigroup’s stock is priced at just 80% of TBV. CEO Jane Fraser is leading a transformative effort, streamlining the bank by exiting 14 consumer franchises, including its profitable Banamex division in Mexico, to focus on higher-return businesses.
The bank’s simplified structure and excess capital position should drive future returns, particularly as regulatory conditions ease. With tangible book value near $90 per share and the stock currently trading around $71, Citigroup has significant upside potential. Add in a 3% dividend yield, and Citigroup becomes a strong candidate for value-focused investors looking to benefit from a banking sector recovery.
Buffett’s track record speaks for itself, and his recent moves highlight opportunities across multiple sectors, from financials to media. Whether you’re seeking growth, value, or a mix of both, these four stocks offer unique investment opportunities with the potential to deliver strong returns over the long term.
