Three Berkshire Hathaway stock recommendations

This legendary investor's best ideas can help you increase your wealth.

Warren Buffett, the legendary investor, has brought substantial returns to Berkshire Hathaway. You can profit together with this billionaire by investing in his favorite stocks. Here are Buffett's three biggest investments, which are still wise investments to this day.

1. Berkshire Hathaway has held Coca Cola stocks for over 35 years. This investment group's stake in this beverage giant is now worth over $25 billion. Coca Cola is not just a soda seller. Its steadily expanding product lineup includes healthier options such as milk, coffee, tea, juice, and purified water. Fairlife, Costa Coffee, Gold Peak, Simply, and Dasani are all impressive brand combinations of the company.

图片来源：THE MOTLEY FOOL。

This beverage giant excels at creating or acquiring popular new products, incorporating them into its global marketing and distribution network, and rapidly increasing sales. Then, Coca Cola Company can use its profits to fund its innovation plans, make other acquisitions, or pay dividends to shareholders. In fact, the company has been increasing cash payments to investors for 62 consecutive years. At present, the dividend yield of the company's stock exceeds 3%.

Although Coca Cola is one of Buffett's longest held stocks, Western Petroleum is one of his recent purchases. Berkshire Hathaway acquired more shares of this energy producer in June. Buffett's investment giant now owns approximately $16 billion worth of Western oil company stocks.

Berkshire Hathaway helped Western Oil Company acquire Anadarko Oil Company in 2019. The merged company has become a powerful player in the Permian Basin, the most oil and gas rich region in the United States. Buffett is also optimistic about Western oil companies' carbon capture plans. This energy company believes that with over 40 years of experience in injecting carbon dioxide underground for more efficient oil extraction, it will be at the forefront of the potential huge carbon capture, utilization, and storage (CCUS) services market. CEO Vicki Hollub plans to license Occidental's technology to companies that want to build facilities that can directly extract carbon from the air and store it underground, or use it for other purposes.

Hollub believes that there is a global opportunity to establish 1000 such factories. Undoubtedly, although the potential environmental benefits are enormous, this is a profit driven adventure. ExxonMobil believes that by 2050, the carbon capture services market will soar to an astonishing $4 trillion. Conversely, Western oil companies hope that their carbon management business will ultimately be more profitable than their oil and gas business.

If you are looking for another investment partner that Buffett likes, you can consider Berkshire Hathaway. If you buy now, you are likely to buy with Buffett. Berkshire Hathaway has repurchased its own stocks for 23 consecutive quarters.

These stock purchases totaling over $77 billion indicate that Buffett believes the stock value of this investment group is much higher than its current price. Berkshire Hathaway has established profitable businesses in multiple industries such as insurance, railways, retail, and real estate. More than 60 operating subsidiaries generate cash, which Buffett and his deputies can reinvest in other profit opportunities.

Overall, these competitive enterprises generated operating profits of $37 billion in 2023, higher than $31 billion in 2022 and $28 billion in 2021. Berkshire's impressive profitability, as well as its large stakes in top companies such as Coca Cola and Occidental Petroleum, puts its shareholders in a favorable position for sustained success.

Analysis suggests that the prices of the three stocks that Buffett increased his holdings in are relatively cheap. Among them, the decline of Western oil stocks within the year has approached 20%. Currently, Western Petroleum ranks sixth in Berkshire Hathaway's portfolio, behind only Apple, American Express, Bank of America, Coca Cola, and Chevron. Buffett has stated that the value of the oil industry has been consistently undervalued over the past few decades.