The stock favored most by the Oracle of Omaha has outperformed the S&P 500 by over 21 percentage points in 2025 and by 75 percentage points over the past five years.
Few money managers draw investor attention like Berkshire Hathaway’s CEO, Warren Buffett. Since taking on the CEO role in the mid-1960s, Buffett has led his company’s Class A shares (BRK.A) to a cumulative return of 6,444,825%, nearly doubling the annualized total return of the benchmark S&P 500 over the past six decades.
Given Buffett’s investment success, many professional and everyday investors look to emulate his strategies for long-term gains. Buffett has a talent for identifying valuable stock opportunities that others overlook. Monitoring Buffett’s trading activities is straightforward, as Berkshire Hathaway is required to file a Form 13F with the Securities and Exchange Commission 45 days after each quarter ends. This form details every stock bought and sold by Buffett and his top advisors, Ted Weschler and Todd Combs, during the quarter.
However, Berkshire’s 13F has limitations and does not disclose Buffett’s favorite stock to buy, a company he invested nearly $78 billion in within a span of less than seven years, outpacing the S&P 500 in returns year-to-date.
Although one might assume Berkshire’s top holdings are Buffett’s preferred choices, this is not necessarily the case. For example, Apple has been Berkshire’s largest holding by market value for over half a decade. Buffett values Apple’s leadership under CEO Tim Cook, who is steering the company toward higher-margin subscription services. Apple’s capital-return program is notable, with nearly $750 billion in share buybacks since 2013, retiring about 43% of its shares.
Despite his praise, Buffett has sold over 615 million shares of Apple since September 30, 2023. Investors might also consider Buffett’s “forever” holdings—such as Coca-Cola, American Express, Occidental Petroleum, and several Japanese trading houses—as his favorites. However, he has not purchased Coca-Cola or American Express shares in recent years. Meanwhile, he bought approximately 265 million shares of Occidental Petroleum since 2022, yet this does not compare to the nearly $78 billion spent on his favorite company.
Buffett’s favorite stock does not appear on Berkshire’s quarterly 13F forms but is disclosed in the company’s operating results. Berkshire Hathaway has been the favored stock. Before July 2018, share repurchases were limited to times when the stock fell to 120% of book value. Since an amendment to buyback rules on July 17, 2018, as long as certain cash reserves are maintained, repurchases can continue indefinitely. For 24 consecutive quarters, nearly $78 billion worth of shares were repurchased, reducing the share count by about 12.6%.
Berkshire Hathaway stock has significantly outperformed the S&P 500 year-to-date and over the past five years. Despite the success associated with these buybacks, Buffett halted stock repurchases in the second half of 2024. As of April 1, Berkshire’s stock traded at a 77% premium to its 2024 year-end book value, a level last seen during the early stages of the Great Recession in December 2007.
This valuation premium suggests the possibility of challenges ahead for Wall Street, even as Berkshire Hathaway’s long-term outperformance showcases the strength of the company built by Buffett and Munger.
