Volatility has returned to the financial markets. The prices of many stocks declined in recent weeks, as traders grew more fearful of tariffs, geopolitical tensions, and a potential downturn in the economy.
Those words should perk up your ears. Students of Warren Buffett’s priceless teachings know that fear creates opportunities for long-term investors.
If you would like to take advantage of the current commotion in the stock market to make some smart investments, here are two outstanding Buffett stocks for your consideration.
Buying shares of great businesses when they’re on sale is a classic Buffett strategy. Investors have an opportunity to do just that with Apple (NASDAQ: AAPL) today.
Apple’s stock price is down about 15% from its 52-week high. Traders focused on the short term are a bit miffed that the tech titan delayed artificial intelligence (AI) upgrades to its popular Siri virtual assistant. But those AI-powered enhancements are still coming, likely within the next year.
The company is working to make Siri more helpful by using AI to personalize responses. The next generation of its digital assistant is also expected to be more conversational and better able to control multiple apps at the same time.
An AI supercharged Siri could help to spark a powerful iPhone upgrade cycle. Higher iPhone sales, in turn, should boost sales and profits.
Buffett no doubt knows this. It’s likely part of the reason Apple remains his largest public stock holding. As of the end of 2024, his investment conglomerate owned 300 million shares of the company, which are currently worth $66 billion.
Moreover, Apple remains a financial powerhouse. With $96 billion in net income during the trailing 12 months, few businesses can match its incredible profitability.
Yet despite its massive scale — the business’ revenue and market value stand at $395 billion and $3.3 trillion, respectively — it continues to grow its profits at an impressive clip. Wall Street expects Apple to increase its earnings per share by more than 10% annually in the coming years.
It’s hard to have a list of Warren Buffett stocks to buy without including Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) itself. The $1.1 trillion investment colossus has created wealth for its shareholders for six decades, and more gains are still to come.
Buffett may have foreseen the recent weakness in the stock market. Berkshire trimmed several of its stock holdings, bringing its cash reserves to $334 billion by the end of 2024.
