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10 No-Brainer Warren Buffett Stocks to Buy Right Now | The Motley Fool

10 No-Brainer Warren Buffett Stocks to Buy Right Now: A Deep Dive into Timeless Investments

Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has long been revered for his value investing approach, emphasizing companies with strong moats, consistent earnings, and reasonable valuations. In a recent analysis from The Motley Fool, experts highlight 10 stocks that align perfectly with Buffett's philosophy, making them "no-brainer" buys for long-term investors. These selections are drawn from Berkshire's portfolio or embody the principles that have made Buffett one of the wealthiest people on the planet. With markets fluctuating amid economic uncertainties, these picks stand out for their resilience, dividend potential, and growth prospects. Let's break them down one by one, exploring why each could be a smart addition to your portfolio right now.

Starting with Apple (AAPL), which has become Berkshire Hathaway's largest holding. Buffett first invested in Apple in 2016, and despite trimming some shares recently, it remains a cornerstone. What makes Apple a no-brainer? Its unparalleled brand strength and ecosystem lock-in. With billions of users hooked on iPhones, iPads, and services like Apple Music and iCloud, the company generates massive recurring revenue. In fiscal 2024, Apple's services segment alone grew 12%, contributing to record profits. Buffett loves businesses with economic moats, and Apple's is as wide as they come—think switching costs and innovation in AI with features like Apple Intelligence. Trading at a forward P/E of around 30, it's not the cheapest, but its $3 trillion market cap underscores its dominance. For investors seeking growth with stability, Apple's consistent buybacks and dividends make it irresistible.

Next up is Coca-Cola (KO), a Buffett favorite since 1988. Berkshire owns about 400 million shares, and Buffett famously drinks five cans a day. The appeal lies in its timeless brand and global reach. Coca-Cola sells beverages in over 200 countries, with a portfolio including Sprite, Fanta, and Dasani. Despite health trends, the company has adapted by expanding into non-carbonated drinks and healthier options. In 2023, organic revenue grew 11%, driven by pricing power and volume increases. Buffett praises its "pricing power without fear of market share loss," a hallmark of great businesses. With a 3% dividend yield and 62 consecutive years of increases, it's a dividend aristocrat. At a P/E of 24, it's reasonably valued for its stability, making it ideal for conservative investors navigating inflation.

American Express (AXP) is another core holding, with Berkshire owning 151 million shares. Buffett invested in the 1990s, drawn to its premium brand and network effects. Amex isn't just a credit card; it's a payments ecosystem with high-net-worth customers who spend more and default less. In Q2 2024, revenue hit $16.3 billion, up 9%, fueled by millennial and Gen Z adoption. The company's moat is its closed-loop system, allowing better data and rewards. Buffett values its ability to compound earnings—over the past decade, EPS grew at 10% annually. With a 1.3% yield and share buybacks, it's a growth-and-income play. Trading at 18 times earnings, it's undervalued compared to peers like Visa, especially as travel and spending rebound.

Shifting to banking, Bank of America (BAC) stands out. Berkshire is its largest shareholder, with over 1 billion shares. Buffett bought in 2011 during the financial crisis, betting on its recovery. Today, BAC boasts $3.2 trillion in assets and a vast consumer base. Q2 2024 showed net interest income up 3%, despite high rates pressuring deposits. Its digital prowess—75 million active users on its app—positions it for the future. Buffett likes banks with strong balance sheets and low-cost deposits, and BAC fits the bill. Yielding 2.5% with a history of hikes, it's a solid pick amid economic cycles. At a P/B of 1.2, it's a bargain for value hunters.

Energy giant Chevron (CVX) enters the list as a recent Buffett addition. Berkshire ramped up its stake in 2020, now holding 126 million shares. Why? Chevron's integrated operations span upstream, midstream, and downstream, providing stability in volatile oil markets. With Brent crude around $80, its free cash flow is robust—$26 billion in 2023. Buffett appreciates its capital discipline and 4% dividend yield, backed by 37 years of increases. The pending Hess acquisition could boost production by 10%. In a world transitioning to renewables, Chevron's low-cost reserves ensure longevity. Valued at 11 times earnings, it's a defensive play with upside if energy demand surges.

Occidental Petroleum (OXY) is Buffett's bold energy bet, with Berkshire owning 255 million shares plus warrants. Started in 2019, this investment reflects confidence in CEO Vicki Hollub's strategy. OXY focuses on Permian Basin assets, emphasizing carbon capture for sustainability. Despite oil price swings, Q1 2024 free cash flow was $700 million. Buffett sees value in its low breakeven costs (around $40/barrel) and debt reduction post-Anadarko deal. Yielding 1.5%, it's more growth-oriented. At 12 times forward earnings, it's attractive for those bullish on oil.

Payments duo Visa (V) and Mastercard (MA) are no-brainers for their oligopoly status. Berkshire holds modest stakes, but Buffett admires their models. Visa processes $14 trillion annually, taking a tiny fee per transaction. Q3 2024 revenue grew 10%, with cross-border volume up 14%. Mastercard mirrors this, with 12% growth. Their moats? Network effects—merchants and consumers are locked in. In a cashless world, they're poised for secular growth. Both yield around 0.7% but buy back shares aggressively. Trading at 25-30 times earnings, they're premium but justified by 20%+ EPS growth.

Amazon (AMZN), a newer Buffett pick via lieutenant Todd Combs, represents e-commerce dominance. Berkshire owns 10 million shares. Amazon's AWS cloud unit generated $25 billion in Q1 2024 operating income, fueling overall profits. E-commerce and Prime's 200 million subscribers create stickiness. Buffett, once tech-averse, now sees its moat in logistics and data. With AI investments, growth could accelerate. At 40 times earnings, it's for patient investors eyeing long-term compounding.

Finally, Kraft Heinz (KHC) rounds out the list. Despite merger hiccups, Berkshire's 325 million shares signal faith. Brands like Oscar Mayer and Philadelphia drive steady sales—Q2 2024 organic growth was 1.9%. Buffett values its consumer staples nature, providing recession resistance. Yielding 4.8%, it's a high-yield play. At 12 times earnings, it's undervalued for income seekers.

These 10 stocks embody Buffett's wisdom: buy wonderful companies at fair prices and hold forever. From tech innovators like Apple and Amazon to stalwarts like Coca-Cola and Chevron, they offer diversification across sectors. In today's market, with interest rates stabilizing and AI booming, these picks could deliver outsized returns. Remember, investing involves risks, but following Buffett's lead has proven timeless. Whether you're a novice or seasoned investor, consider these as foundational holdings for building wealth over decades. (Word count: 1,048)

Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/general/2025/07/27/10-no-brainer-warren-buffett-stocks-buy-right-now/ ]