Three Buffett Stocks Worth Buying Currently

In terms of searching for stocks with bright prospects and relatively cheap prices compared to long-term prospects, no one can compare to Buffett. Buffett's unique stock selection skills have earned Berkshire Hathaway substantial returns, with returns far exceeding the overall market over the past half century. Investors are now imitating Buffett's investment philosophy and strategic standards, trying to find good stocks that are undervalued by the market.

Here are three Buffett stocks that I believe are currently worth buying.

图片来源：THE MOTLEY FOOL。

1. Kroger

Kroger (KR 1.39%) has over 2700 stores and is one of the largest chain supermarkets in the United States, with brands including King Soopers, Ralph's, and Smith's. Berkshire Hathaway owns 7% of the company's outstanding shares.

It is easy to see that Buffett likes this simple but profitable business. People always need to eat, and nearby grocery stores are a convenient option that captures demand that doesn't fade with economic fluctuations. This stability has enabled the stock to achieve an astonishing 152% return over the past five years, even surpassing the S&P 500 index and its 92% increase during this period. The recent efforts to control costs and improve financial efficiency have led to the stock reaching a historic high in 2025.

The company's ability to consolidate market share through stable growth puts Kroger in a favorable position to continue rewarding shareholders.

2. Kraft Heinz
Even the Oracle of Omaha is prone to occasional mistakes. Kraft Heinz (KHC 0.20%) is one of Berkshire Hathaway's worst performing investments over the past decade, losing about half of its value since 2017. In the constantly changing economic situation, the growth of this consumer goods and packaged food giant is sluggish, which led Buffett to admit that Berkshire Hathaway may have paid a high price for its large positions in stocks in 2015.

That being said, perhaps no other stock has shown the same 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 not sold any shares.

From the good news, the latest trend indicates that the economy is experiencing a turnaround. After better than expected fourth quarter earnings reports, the stock rose 17% from its 52 week low. For the full year ended December 28, 2024, adjusted earnings per share (EPS) were $3.06, a 2.7% increase from 2023, highlighting the company's success in maintaining profitability despite still slow growth. Considering the remarkable 5% dividend yield of the stock, supported by strong underlying free cash flow, this is good news.

Ultimately, Kraft Heinz is a great high-yield stock that can serve investors in a diversified investment portfolio.

3. Domino's Pizza
Domino's Pizza (DPZ 1.54%) is one of Warren Buffett's latest investments. Berkshire Hathaway disclosed its initial shares in November 2024. According to the latest regulatory documents, Berkshire Hathaway has added this position in recent months. It is currently valued at $1.1 billion and holds 6.9% ownership of the circulating shares of this pizza chain.

Although the reasons behind Domino's acquisition have not been publicly discussed, the company aligns with Buffett's investment philosophy, which traditionally focuses on businesses that are easy to understand, have a strong brand and stable cash flow, and have a competitive advantage.

In this situation, Domino's seems more popular than ever before, with 21633 stores worldwide. In 2024 (as of December 29, 2024), global retail sales increased by 5.9% year-on-year, driving earnings per share growth of 13.8%. Compared to the challenging period of dealing with inflationary cost pressures, especially between 2022 and 2023, recent efforts to increase profit margins and initiate growth seem to be paying off. The company expects this momentum to continue until 2025, while announcing an impressive 15% increase in dividend yield.

Due to the stock price still dropping by about 14% from its 52 week peak, I believe that Domino's has all the elements to set a new historical high.