Warren Buffett is a legendary investor known for his successful track record at Berkshire Hathaway. His investment strategy focuses on buying quality companies with strong competitive advantages, reliable earnings, and solid management. As July begins, three stocks from Buffett’s portfolio stand out as potential buys.
BYD, a Chinese company, has grown to become one of the world’s largest electric vehicle manufacturers. It delivered 3.52 million vehicles in 2024, outpacing its nearest competitor. BYD’s first-quarter revenue reached $23.77 billion, up 36% year-over-year, while profits doubled to $1.27 billion.
Berkshire’s stake in BYD is valued at $2.5 billion. VeriSign plays a crucial role in the Internet’s functionality by providing domain name registry services and internet infrastructure. It supports 169.8 million domain names and processes over 428.1 billion DNS queries daily.
These qualities align well with Buffett’s investment criteria. VeriSign’s first-quarter revenue was $402 million, representing a 4.7% increase from the same period last year, with net income of $199 million. Berkshire holds a 14.3% stake in VeriSign.
Buffett’s top July buy options
Coca-Cola, a longtime Buffett favorite, has diversified into various beverage categories to meet changing consumer preferences. The company’s first-quarter revenue dipped 2% to $11.1 billion, but operational efficiencies improved its operating margin from 18.9% to 32.9%.
Earnings per share grew 5% to $0.77. Berkshire owns a 9.3% stake in Coca-Cola, worth $28.45 billion. Chevron, another Buffett holding, is an attractive buy in July due to its reliable dividend.
The energy giant has increased its dividend for 38 consecutive years, yielding 4.7% currently. Chevron’s integrated business model and strong financial position enable it to navigate the fluctuations of the energy sector. The company’s stock is down around 20% from its 2022 highs, presenting an opportunity for long-term dividend investors.
As Americans were preparing for the Fourth of July, several companies in Buffett’s portfolio are poised to benefit from increased consumer spending. Coca-Cola, Constellation Brands, Kraft Heinz, and Kroger are among the favorites. These companies offer a range of products, including beverages, snacks, groceries, and general merchandise, that are popular during holiday celebrations.
Buffett’s investment philosophy emphasizes selecting quality businesses with long-term growth potential. By considering stocks like BYD, VeriSign, Coca-Cola, and Chevron, investors can align their strategies with Buffett’s approach and potentially benefit from the long-term growth of these well-managed companies.
