One lesson all investors can glean from the legendary Warren Buffett is that successfully navigating the stock market requires patience and the discipline to stick with a long-term strategy. It’s normal for stocks to face volatility with the occasional sell-off, but holding a diversified portfolio built with several high-quality companies is a proven approach to navigating through any market environment.
While Buffett’s prolific ability to consistently find undervalued companies is a talent most people can only dream of, the massive stock portfolio of Berkshire Hathaway can be a great source of investing ideas. That doesn’t mean every stock is a sure thing to deliver a home-run return, but there’s a benefit in knowing that their fundamentals have been vetted by one of the world’s most skilled investors.
Here are three Buffett stocks that I believe are strong buys right now.
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1. Kroger
With more than 2,700 stores, Kroger (KR 1.39%) is one of the largest supermarket chains in the United States, with an umbrella of brands that includes King Soopers, Ralph’s, and Smith’s. Berkshire Hathaway owns 7% of the company’s outstanding shares.
It’s easy to see what Buffett likes in this simple, yet highly profitable, business. People always need to eat and the neighborhood grocer is a convenient option, capturing demand that doesn’t fade with economic swings. That stability has powered the stock to a fantastic 152% return over the past five years, even outperforming the S&P 500 index and its 92% gain over the period. Recent efforts to control costs and generate financial efficiencies have powered the stock to an all-time high in 2025.
The company’s ability to consolidate market share with steady growth makes Kroger well-positioned to continue rewarding shareholders.
2. Kraft Heinz
Even the “Oracle of Omaha” is prone to the occasional misstep. Kraft Heinz (KHC 0.20%) has been one of Berkshire’s worst-performing investments over the past decade, losing about half its value since 2017. Underwhelming growth from the consumer staples and packaged foods giant amid a shifting economic landscape led Buffett to acknowledge that Berkshire likely overpaid for its large position in the stock in 2015.
That being said, perhaps no other stock projects the same level of unwavering confidence in its long-term potential. Berkshire still holds a 27% stake in Kraft Heinz, accounting for approximately 3.5% of the investment portfolio, and has yet to sell a single share.
Favorably, the latest trends suggest an emerging turnaround. The stock has climbed 17% from its 52-week low following a better-than-expected fourth-quarter earnings report. For the full year ended Dec. 28, 2024, adjusted earnings per share (EPS) of $3.06 climbed by 2.7% from 2023, highlighting the company’s success at maintaining profitability despite still-sluggish growth. That’s great news when thinking about the stock’s compelling 5% dividend yield, supported by strong underlying free cash flow.
Ultimately, Kraft Heinz makes for a good high-yield income stock that can work for investors within a diversified portfolio.
3. Domino’s Pizza
Domino’s Pizza (DPZ 1.54%) is one of Warren Buffett’s newest investments. Berkshire disclosed an initial stake in November 2024. According to the latest regulatory filing, Berkshire added to the position in recent months. It’s now valued at $1.1 billion, representing a 6.9% ownership in the pizza chain’s outstanding shares.
While the reasoning behind the Domino’s purchase has not been publicly discussed, the company fits the mold of Buffett’s investing philosophy, which is traditionally focused on easy-to-understand businesses with strong brands and consistent cash flow, with a competitive edge.
In this case, Domino’s appears more popular than ever, with 21,633 stores worldwide. In 2024 (for the period ended Dec. 29, 2024), global retail sales climbed by 5.9% year over year, propelling a 13.8% increase in EPS. Compared to a challenging period, particularly between 2022 and 2023, dealing with inflationary cost pressures, recent efforts to improve margins and kick-start growth appear to be paying off. The company projected optimism for the momentum to continue into 2025 while declaring an impressive 15% dividend rate increase.
With shares still down about 14% from their 52-week peak, I believe Domino’s has all the ingredients in place to reach a new record high.
Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Domino’s Pizza. The Motley Fool recommends Kraft Heinz and Kroger. The Motley Fool has a disclosure policy.