Berkshire Hathaway's portfolio points to three stocks the article views as promising for 2025: Amazon, Chubb and SiriusXM. Amazon (0.7% of Berkshire) has materially improved e-commerce margins (North America 3.9%→5.9%; international -3%→3.6%), AWS growth has re-accelerated to ~19% with operating margin expanding from ~24% to ~38%, and Amazon has invested roughly $8bn+ in Anthropic while securing Trainium for model training. Chubb benefits from pricing power and higher rates—reporting a P&C combined ratio of 87.7%, return on tangible equity of 21.7% and adjusted interest income up ~16%—supporting earnings resilience in a higher-rate environment. SiriusXM, which Berkshire increased exposure to after a simplification merger, plunged ~58% in 2024, trades around just over 7x earnings, and could recover if auto production rebounds, its new ad-supported tier gains traction and planned cost cuts stabilize margins.
Amazon: Berkshire holds a modest 0.7% stake in Amazon after buying in Q1 2019; since then the stock has nearly tripled but the company still shows material operational improvement. North American e‑commerce operating margin expanded from 3.9% to 5.9% and international e‑commerce swung from a 3% operating loss to a 3.6% positive margin, while AWS reaccelerated to ~19% growth from 12% five quarters ago and saw operating margins climb from 24.2% to 38.1%. Amazon’s incremental investment in Anthropic (cumulative ~$8 billion across 2023–24) and Anthropic’s agreement to use Amazon Trainium for model training both reduce partner costs and increase AWS addressable revenue, supporting higher profitability and AI workload share. Chubb: Chubb’s underwriting and balance‑sheet dynamics position it to benefit from the current pricing and rate environment; the company reported a P&C combined ratio of 87.7%, return on tangible equity of 21.7%, and adjusted interest income growth of ~16% last quarter. Pricing power and the ability to reinvest float at higher yields underpin earnings resilience, though elevated catastrophe activity remains the principal underwriting risk to monitor. SiriusXM: Berkshire increased exposure after the September simplification; SiriusXM fell ~58% in 2024 and now trades at just over 7x earnings, reflecting secular and cyclical pressures. The stock’s recovery hinges on stabilizing or regrowing subscribers via vehicle pre‑installs, traction from its new free ad‑supported tier, and execution on announced cost cuts, making upside plausible but execution‑dependent.
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Overall Sentiment
moderately positive
Sentiment Score
0.45
Ticker Sentiment
