2 Warren Buffett Stocks to Buy With $750 Right Now, According to Wall Street

Berkshire Hathaway's stock portfolio, including significant positions in Apple and Domino's Pizza, has seen substantial gains, with the average position more than tripling from its cost basis. Despite Wall Street analysts projecting upside for both Apple (13% based on a $235 median target price) and Domino's (7% based on a $530 median target price), concerns remain about their current valuations relative to earnings growth; Apple's AI initiatives face delays, and Domino's missed its operating income growth target in the recent quarter, raising questions about near-term performance.

Analysis

Berkshire Hathaway's notable investment success, exemplified by its stock portfolio where the average position has more than tripled from a $77 billion cost basis to $264 billion, includes significant holdings in Apple (AAPL) and Domino's Pizza (DPZ). Wall Street maintains a consensus "buy" rating on both, with median target prices suggesting a 13% upside for Apple (to $235 from $207) and a 7% upside for Domino's (to $530 from $495). However, a deeper examination reveals potential headwinds. Apple reported 5% revenue growth to $95 billion and an 8% increase in GAAP EPS to $1.65 in Q2 fiscal 2025, driven by services and share repurchases. Despite its strong brand, expansive 2.35 billion active device base, and innovation potential, Apple's efforts to monetize artificial intelligence through Apple Intelligence face challenges, including the indefinite delay of an upgraded Siri, as reported by Bloomberg. Furthermore, CEO Tim Cook cited limited visibility beyond June due to tariffs, and Wall Street's projected 6% annual earnings growth through fiscal 2026 makes its current valuation of 29 times earnings appear elevated.

Domino's Pizza, while the largest quick-service pizza company leveraging technology like AI and robotics for efficiency, reported mixed Q1 results: revenue increased 2.5% to $1.1 billion (missing estimates), though GAAP EPS rose 21% to $4.33 (beating estimates). The company gained market share but its "Hungry for More" strategy, targeting 8% annual operating income growth through 2028, saw a setback as Q1 operating income grew only 3.6% (excluding currency impacts and one-time expenses). Despite management's confidence, Wall Street's forecast of 6% annual earnings growth through 2026 positions its current valuation of 28 times earnings as expensive, even if the company achieves its 8% profit growth target.

Key Decisions for Investors

• Investors should critically evaluate Apple's current valuation of 29 times earnings against its projected 6% annual EPS growth and the execution risks associated with monetizing its AI initiatives, particularly the delayed Siri upgrade and limited forward visibility due to potential tariffs.
• For Domino's Pizza, caution is warranted due to its high valuation at 28 times earnings, especially considering the recent miss on its 8% operating income growth target, and investors might await evidence of sustained progress towards its strategic goals or a more attractive entry point, such as a 20% price reduction, before considering an investment.
• While Wall Street analysts see upside, both companies present valuation concerns relative to their near-term growth prospects and specific operational challenges; therefore, a thorough risk-reward assessment is advised before aligning with consensus 'buy' ratings.