What is Buffett's favorite stock to own?

Asked by: Benny Weber  |  Last update: February 7, 2026
Score: 4.8/5 (72 votes)

While Apple is Berkshire Hathaway's largest holding and often called his favorite, Warren Buffett also strongly favors long-term holdings like American Express, Coca-Cola, and recently added Alphabet, all known for strong brands, dominant market positions, and consistent value, though he's trimmed Apple and invested in Alphabet recently to diversify slightly.

What is Warren Buffett's favorite stocks?

2. Warren Buffett's top 10 stock holdings (June, 2021)

  • Apple (AAPL) The largest of Warren Buffett's stock holdings is Apple. ...
  • Bank of America (BAC) ...
  • American Express (AXP) ...
  • Coca-Cola (KO) ...
  • Kraft Heinz (KHC) ...
  • Moody's (MCO) ...
  • US Bancorp (USB) ...
  • Verizon Communications (VZ)

What to invest $1000 in right now?

You can invest $1,000 in diversified options like S&P 500 index funds or ETFs, use a robo-advisor for automated management, buy partial shares of individual stocks (like tech giants Nvidia or Amazon), or prioritize safety with a high-yield savings account, with options like robo-advisors and ETFs offering broad market exposure and single stocks providing concentrated growth, notes Investopedia, Bankrate. 

What does Warren Buffett recommend to invest in?

Invest 90% of your liquid assets in a low-cost S&P 500 index fund (Buffett recommended Vanguard's). Buffett argues that stocks will continue to provide higher returns over the long run than bonds or cash. Invest the remaining 10% in short-term government bonds such as U.S. Treasury bills.

What is Warren Buffett's favorite stock market indicator?

Interpretation. The Buffett Indicator, also known as Market Cap to GDP, has gained prominence as a long-term valuation indicator for stocks, largely due to Warren Buffett's endorsement.

Warren Buffett: The Only 3 ETFs I'd Buy If I Had to Start Over in 2026

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What are Warren Buffett's top 5 dividend stocks?

While Warren Buffett's portfolio includes many dividend payers, his recent focus often highlights Chevron (CVX) for its stability, Coca-Cola (KO) for its consistent growth, and sometimes other high-yielders like Kraft Heinz (KHC) or financial stocks like Wells Fargo (WFC), though yields shift; however, his largest holdings like Apple (AAPL) and Bank of America (BAC) provide significant total dividends despite lower yields, making the "top paying" subjective, but Chevron, Coca-Cola, and American Express (AXP) are key income generators. 

What is the 70/30 rule Buffett?

The "Buffett Rule 70/30" usually refers to an investment guideline suggesting 70% of a portfolio in growth assets (stocks) and 30% in safer assets (bonds or fixed income) for long-term balance, though some interpret it as 70% stocks and 30% "corporate workouts" (special situations), and Buffett also champions a 90/10 index fund strategy for most people. It's a flexible rule of thumb, not a rigid law, often adjusted by age, risk tolerance, and investment goals, with younger investors potentially favoring more stocks and those near retirement less.
 

What is the 8 8 8 rule of Warren Buffett?

Warren Buffett's 8-8-8 Rule is a principle for life balance, suggesting dividing your day into three equal parts: 8 hours for work, 8 hours for sleep, and 8 hours for personal time (rest, family, growth), promoting sustainable productivity and well-being over burnout. While a guiding philosophy for focus, many note that practical life (commuting, chores) makes perfect 8-hour segments difficult, emphasizing it's a goal for balance, not a rigid schedule. 

What is the best stock to buy and hold forever?

Three businesses that I think are solid investments with terrific financials and growth prospects that you can safely buy today and hang on to forever are Eli Lilly (NYSE: LLY), American Express (NYSE: AXP), and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL).

How much is $1000 a month invested for 30 years?

Investing $1,000 a month for 30 years results in total contributions of $360,000, but the final value depends heavily on the average annual return, potentially ranging from around $800,000 at 5% to over $2.2 million at 10% or more, with figures like $1.4 million (8.27% return) and $1.8 million (9.5% return) being common estimates, showcasing significant compound growth. 

Which stock can give 1000x return?

Achieving a 1000x stock return means turning $1,000 into $1 million, a feat usually accomplished by long-term investments in revolutionary companies like Nvidia, Amazon, and Microsoft, which expanded from niche products (gaming GPUs, books) into dominant tech giants. Finding similar future 1000x stocks involves identifying emerging sectors (AI, biotech, EVs), companies with strong secular growth, expanding markets, significant competitive advantages (moats), and improving financials, though this often means high risk and potential early-stage volatility, as seen with penny stocks or hypergrowth companies like Carvana or Solid Power.
 

How can I turn $1000 into $10000 fast?

How To Turn $1,000 Into $10,000 in a Month

  1. Start by flipping what you already own. ...
  2. Turn flipping into an Amazon reselling business. ...
  3. Use education and online courses to raise your earning power. ...
  4. Add simple long-term investing in the background. ...
  5. Put it all together: a practical path from 1,000 to 10,000.

How much money do I need to invest to make $3,000 a month?

To make $3,000 a month ($36,000/year) from investments, you need a significant principal, with estimates ranging from around $300,000 to over $700,000, depending on the investment's yield: roughly $300k-$400k for higher-yielding assets (like REITs or dividend ETFs with 4-8% yields) or closer to $720,000 for very stable Dividend Aristocrats with lower yields (around 5%), while real estate might require a large down payment on a property. 

What stocks will skyrocket in 2025?

While no one can predict the future, Artificial Intelligence (AI), semiconductors, cloud computing, health tech, and e-commerce were strong sectors in 2025, with names like Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN), and TSMC (TSM) often cited for their performance and potential, driven by AI demand and strong tech fundamentals. Companies like Broadcom (AVGO), Eli Lilly (LLY) (health/obesity), and emerging tech/growth stocks such as Palantir (PLTR), AMD (AMD), and ASML (ASML) also showed promise, with real assets like gold miners gaining momentum in early 2026 as the tech rally broadened, suggesting a rotation into other areas. 

Who owns 93% of the stock market?

About 93% of U.S. stock market wealth is owned by the wealthiest 10% of households, a record concentration, according to Federal Reserve data reported by Axios and Inequality.org. While many Americans own stocks, the vast majority of the value of the stock market is held by the richest individuals, with the bottom 90% owning a tiny fraction. 

What is Warren Buffett's #1 rule?

Warren Buffett's #1 rule of investing is famously simple and stark: "Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.". This principle emphasizes capital preservation and avoiding significant losses, suggesting that protecting your principal is more crucial for long-term wealth building than chasing high, risky returns. It means focusing on buying good businesses at fair prices, understanding what you invest in, and being disciplined to prevent large, permanent losses, even if it means missing out on some fast gains. 

What are Warren Buffett's favorite dividend stocks?

Warren Buffett's top dividend stocks in Berkshire Hathaway's portfolio often include major holdings like Coca-Cola (KO), American Express (AXP), Bank of America (BAC), and Chevron (CVX), alongside consumer staples like Kraft Heinz (KHC), offering stable income and reliable dividend growth, with Apple (AAPL) being a significant large-cap holding though not primarily a high-yield stock. These companies provide consistent payouts, making them core dividend investments for income investors following Buffett's value-oriented strategy.
 

Which investment gives 50% return?

Achieving a 50% investment return typically involves high-risk, high-reward assets like individual growth stocks, venture capital, emerging markets, or specific small-cap funds, as seen with some top performers recently. While safer options like index funds average much lower (around 10%), a small number of stocks can skyrocket, but this requires careful selection, and high returns always come with a significant chance of total loss, so diversification and research are crucial, say Investopedia, Stock Analysis, and The News Minute. 

What does Warren Buffett say to buy?

Get High Value at a Low Price

In the case of stocks, Buffett recommends when approaching your investment strategy, start by looking for opportunities to get more value at a lower price. “Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down,” he wrote.

What is the golden rule of Buffett?

Warren Buffett has several "golden rules," but a core one is to treat people with kindness and respect, like the cleaning lady as much as the CEO, emphasizing value beyond money. For investing, his famous rules are: Rule #1: Never lose money. Rule #2: Never forget Rule #1, alongside principles like understanding what you invest in, being patient and rational, and focusing on long-term business value over stock price. 

Which is the biggest asset that you earn you money while you sleep?

Assets That Make You Rich While You Sleep

  • Stocks That Pay Dividends. Dividend stocks from stable companies provide regular payouts. ...
  • Real Estate That Appreciates. Properties gain value while rentals cover costs. ...
  • Businesses That Scale. Build ventures that grow without extra effort. ...
  • Digital Assets That Multiply. ...
  • Index Funds.

How long will $500,000 last using the 4% rule?

Your $500,000 can give you about $20,000 each year using the 4% rule, and it could last over 30 years. The Bureau of Labor Statistics shows retirees spend around $54,000 yearly. Smart investments can make your savings last longer.

What if you invested $1,000 in Berkshire Hathaway 10 years ago?

If you invested $1,000 in Berkshire Hathaway B shares (BRK.B) about 10 years ago (around late 2015/early 2016), your investment would have grown significantly, potentially reaching over $3,000 to $3,800 by late 2025, depending on the exact date, representing a gain of roughly 200-280% (excluding dividends) and outperforming the S&P 500 over that period, showcasing strong long-term value, according to analyses from sources like Zacks Investment Research, CNBC, and The Motley Fool. 

What if I invest $100 a month for 10 years?

Investing $100 a month for 10 years can grow significantly, potentially reaching around $19,000 at a 10% average return, thanks to compound interest, with actual amounts varying based on investment choice and market performance. Key strategies include using index funds (like S&P 500) for broad market exposure, considering ETFs or robo-advisors for ease, and maximizing tax-advantaged accounts like a 401(k) or IRA, especially if you get an employer match, which can drastically increase your total.