In August, Warren Buffett’s Berkshire Hathaway (NYSE: BRK-B) became the first non-tech U.S. company to reach a $1 trillion market cap. The Omaha-based conglomerate’s shares have surged more than 28% in 2024, outpacing the S&P 500’s 18% gain, and this company certainly continues to be a top holding of many conservative value investors for many reasons. But it’s Buffett’s willingness to go against the grain that has many investors most impressed, taking the “buy low, sell high” mantra to a new level with his recent stock sales.

Warren Buffett clearly sees something on the horizon many in the stock market don’t. And time will tell if he’s ultimately right (he previously bemoaned sales of Apple stock before).

But even with his recent portfolio trims, there are certain stocks Buffett appears intent on holding for a very long time. Accordingly, I thought I’d take a stab at discussing three of his top picks from a portfolio weighting standpoint. Each of these companies currently make up more than 10% of Buffett’s publicly traded portfolio.

Key Points About This Article:

• Warren Buffett remains one of the greatest investors of all time, and his portfolio holdings continue to garner plenty of interest from those in the financial community.
• Here are three of his top publicly traded stocks held within Berkshire Hathaway that may be worth considering at this current point in the market cycle.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Moody’s Corporation (MCO)

Moody’s Corporation (NYSE:MCO) dominates the credit ratings industry with its Moody’s Investors Service (MIS). The company provides coverage on a range of assets including corporate bonds, structured finance products, financial institutions, and publicly-traded financial products. The company’s status as one of a few companies in a relative oligopoly has provided outsized pricing power, and is one of the key reasons Warren Buffett has praised the firm in the past.

Many consider the company to operate a near-monopoly, with a business model that provides incredible cash flow stability in all market environments. Thus, in this period where Buffett clearly sees some turbulence ahead, holding onto such a stock (and potentially adding on dips) seems like a reasonable strategy moving forward. We’ll have to see what Buffett does if times get tough, but I wouldn’t be surprised to see this stock be one of his top additions if times get bad.

The company benefits from increased loan and bond issuances during lower interest rate environments, with corporate risk management services peaking during periods of higher interest rates. Thus, no matter what the monetary policy environment is, this is a stock that can outperform.

Recent results certainly peak to this. In the company’s most recent Q2 2024 report, Moody’s announced adjusted earnings of $3.28 per share, exceeding the consensus $3.06 estimate. Importantly, this number represented 43% year-over-year earnings growth, driven by strong global bond issuance and steady analytics demand.

With analysts continuing to raised their price targets on OXY stock, this is one I think investors need to pay attention to here.

Occidental Petroleum (OXY)

Despite Warren Buffett’s advice to invest in America long-term, Berkshire Hathaway’s recent actions have sometimes diverged. Over the past seven quarters, the firm has sold $131.6 billion in equities, with Apple being the largest contributor to these sales. Since October 2023, Berkshire has offloaded over 500 million Apple shares. However, Berkshire has consistently purchased Occidental Petroleum (NYSE:OXY) stock for over two years.

Currently, more than 10% of Berkshire Hathaway’s $315 billion portfolio is now invested in oil stocks. Occidental and rival Chevron make up the vast majority of these holdings, with this bet being directionally correct for some time. Despite oil prices dipping of late, Buffett’s view appears to be that commodities may be a safer place to invest in times of trouble. And while that certainly didn’t play out in the pandemic (though it did with the post-pandemic rebound), we’ll have to see if he’s right. Again, I think these are long-term holdings, but I wouldn’t be surprised to see some trading activity pick up as prices continue to fluctuate in the market. 

Buffett’s continuing purchases of OXY stock have increased bets that this particular holding may become a wholly-owned subsidiary at some point. Time will tell if that’s the overall strategy. But for now, I think this company, which has Buffett’s blessing, is certainly worth a look.

Davita (DVA)

DaVita (NYSE:DVA) offers defensive safety with growth potential, making it appealing during market volatility. Over the past five years, the company has grown its EPS at a 15.5% annualized rate. This growth has outperformed its industry and the S&P 500.

I expect this trend to continue, with Davita forecasting its EPS will rise 18% in 2024 and 14% in 2025. DaVita’s sales have grown steadily, reaching $12.14 billion in 2023, and are projected to surpass $13 billion by FY25.

The company’s Q2 results were solid, with DaVita bringing in $3.2 billion in consolidated revenue, U.S. net income of $222.7 million and a 7% profit margin. Additionally, the company repurchased 2.7 million shares at an average of $140.14 each. Revenue per dialysis treatment rose to $390.22, up $5.68 from Q1, while patient costs per treatment increased by only $0.25.

As far as companies with steady cash flow and earnings growth are concerned, this dialysis provider certainly has a business model that’s not only essential, but holds pricing power in a sector that the government may try to intervene in. Thus, those looking for big pharma exposure may want to look here first for a defensive long-term holding worth buying now.

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