Legendary investor Warren Buffett’s holding company, Berkshire Hathaway (NYSE:BRK.B), just released its latest 13F regulatory fling with the Securities and Exchange Commission. As always, the filing is being closely scrutinized by both professional and amateur investors to see which so called “Warren Buffett stocks” are on the move.
Given his track record of beating the performance of the S&P 500 stock index, Buffett’s investment moves serve as a litmus test for people on Wall Street and Main Street who carefully review Berkshire Hathaway’s massive portfolio and try to replicate its returns.
However, while Buffett moves in and out of stocks, there are many securities that he has held onto for years and continues to buy more shares of. In this article, we look at three of the best Warren Buffett stocks investors can buy right now.
Warren Buffett Stocks: Kroger (KR)
Berkshire Hathaway only added to a few of its positions in this year’s second quarter, and the most new shares it bought were of grocery retail chain Kroger. In its latest regulatory update, Berkshire Hathaway disclosed that it purchased nearly 11 million additional shares of KR stock during the quarter ended June 30, bringing its total holdings to 61.8 million shares worth $2.68 billion.
Buffett’s company has been steadily adding to its Kroger stake over the past year, even as the pandemic created economic uncertainty.
Scrutinizing Kroger’s financials, it should come as no surprise that the Cincinnati, Ohio-based grocer is one of the favored Warren Buffett stocks. Kroger has many of the attributes Buffett likes in a company and stock. Kroger consistently reports strong earnings that top analysts’ estimates.
In its most recent quarter, Kroger reported revenue of $41.3 billion and earnings per share of $1.19, well above analysts’ average forecast for $39.8 billion in revenue and EPS of $1.01.
However, what Buffett really likes about Kroger is likely its dividend. Following its most recent quarterly results, Kroger announced that it is increasing its quarterly dividend payout by 17% to 21 cents per share. The latest dividend increase is up significantly from raises of 12.5% and 14.3% in 2020 and 2019.
With his current holdings of KR stock, Buffett will earn nearly $13 million each quarter from Kroger’s dividend payout.
Buffett didn’t invest in Apple until 2016. But since then, the Oracle of Omaha has been making up for lost time. Today, AAPL stock is the biggest holding in Berkshire Hathaway’s portfolio.
The holding company owns more than 907 million shares of Apple stock worth $137.15 billion. Clearly, Buffett has become a convert and rabid fan of the consumer technology giant. Notoriously fickle when it comes to technology stocks, Apple is one of the few tech securities that Berkshire Hathaway owns and the company has only added to its position in recent years.
The investment in AAPL stock appears to have been a shrewd move. As Apple became the first ever publicly traded company to achieve a $2 trillion market capitalization, Buffett’s Berkshire Hathaway cashed in.
In his annual letter to shareholders this past spring, Buffett disclosed that Berkshire Hathaway has made $100 billion on Apple stock in just five years of owning it, making it, literally, the best investment of the 90-year-old investor’s career.
Warren Buffett Stocks: Restoration Hardware (RH)
One of the other stocks that Berkshire Hathaway increased its stake in during the second quarter of this year was upscale home furnishing company Restoration Hardware.
Buffett’s Berkshire Hathaway first invested in RH in the third quarter of 2019, buying an initial stake of 1.1 million shares. Since then, Buffett has bought a total of 1.8 million shares worth $1.28 billion. The investment has been another success, with RH stock having risen 62% so far in 2021, and grown 309% since Buffett first opened his position.
RH stock performed well during the pandemic as people furnished new houses they had bought or upgraded the furniture in existing homes. And the stock has also performed strongly this year as the economy reopens and consumers spend their federal stimulus checks.
With RH stock now trading for $715, Buffett’s enthusiasm for the stock has not diminished. In the second quarter, Berkshire Hathaway bought an additional 35,519 shares of RH stock, one of only three holdings the company increased in the period.
On the date of publication, Joel Baglole held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.