5 Stocks Warren Buffett Has Bought So Far in 2025

Warren Buffett's Berkshire Hathaway strategically added to its equity portfolio in Q1 2025, deploying billions into several key positions despite being a net seller in recent years. Notable increases included Constellation Brands (STZ) over $1 billion, Pool Corp. (POOL) near $450 million, and Sirius XM (SIRI) to $2.7 billion, often targeting value plays with strong underlying businesses or attractive dividends. Berkshire also initiated or added to positions in Heico Corp (HEI) and Domino’s Pizza (DPZ), while further bolstering holdings in long-term conviction bets like Occidental Petroleum (OXY) and Verisign (VERI), signaling a continued focus on companies with strong market positions, potential for recovery, or consistent cash flows.

Analysis

Berkshire Hathaway's Q1 2025 investment activity reveals a highly selective deployment of capital, focusing on distinct value and conviction theses rather than a broad market bet. The firm increased its holdings in several companies facing significant headwinds, indicating a classic value-oriented approach. For instance, positions were added in Constellation Brands (STZ), which has underperformed due to tariff concerns, and Pool Corp. (POOL), whose stock dropped as post-pandemic installation demand waned. Similarly, the stake in Domino's Pizza (DPZ) was increased despite the stock's 14% decline since mid-2024 on missed revenue forecasts and rising labor costs. In these cases, Berkshire appears to be prioritizing durable market positioning and recurring revenue streams over short-term sentiment. The investment in Sirius XM (SIRI) represents a deep value, income-focused play, with Berkshire adding to its position despite a 60% stock price collapse since 2022 and falling profits, likely attracted by the greater than 5% dividend yield and low P/E ratio. In contrast, the increased stake in Heico Corp (HEI) is a momentum-based decision, capitalizing on its 32% stock appreciation in 2025 and growing profits, which are directly linked to rising geopolitical tensions. Finally, additions to core long-term holdings like Occidental Petroleum (OXY) and Verisign (VERI) underscore a continued high conviction in their strategic value, with Berkshire now owning nearly 30% of OXY and reaffirming its position in VERI for its steady growth and favorable valuation.

Key Decisions for Investors

• Investors should analyze the fundamental strengths of beaten-down consumer names like STZ, POOL, and DPZ, as Berkshire's buying signals a belief that their long-term market leadership and recurring revenue models may be undervalued.
• For those with a high-risk tolerance seeking income, SIRI's greater than 5% dividend yield is notable, but this must be weighed against its significant stock price depreciation and declining profitability, marking it as a distinct contrarian play.
• Consider exposure to the aerospace and defense sector through companies like HEI, which is benefiting from geopolitical tailwinds and exceeding profit expectations, a thesis supported by Berkshire's increased investment.
• Berkshire's continued accumulation in core holdings such as OXY and VERI, despite already large positions, suggests investors should re-evaluate the long-term strategic merits of these companies beyond near-term market noise.