Prediction: These will be Warren Buffett’s top 5 stocks in 2025

It doesn’t take a Nostradamus to predict what Warren Buffett will have as his top position Berkshire Hathawayhis portfolio next year. I think it will almost certainly be cash, including cash equivalents and short-term investments in treasury bills.

Berkshire’s cash stockpile totaled nearly $277 billion at the end of the second quarter of 2024. Buffett would be hard-pressed to spend enough of that cash over the next 16 months to keep cash from becoming Berkshire’s No. 1 position at end of next year.

However, forecasting Buffett’s top holdings is not as easy. I have my ideas, though. I predict these will be the top five stocks in Berkshire’s portfolio in 2025.

1. Apple

Apple (AAPL 1.37%) reigned as Berkshire’s largest holding company for years. It’s still No. 1, despite Buffett selling about half of his company’s stake in Apple in recent months. I expect the stock to remain at the top in 2025.

Even though Buffett sold a significant portion of Berkshire’s position in Apple, there’s no reason to think he still doesn’t like the stock and the company. At Berkshire Hathaway’s annual shareholder meeting in May, he praised Apple’s business.

2. American Express

American Express (AXP 1.85%) it is currently the third largest in Berkshire. It represents 11.8% of the conglomerate’s portfolio. I don’t expect Buffett to buy additional shares of Amex, but I do think it will go up a spot.

There are two reasons behind my prediction about American Express. One is that I think the stock will do well over the next year or so (assuming there’s no recession). What is the other reason? I will discuss further.

3. Bank of America

Bank of America (BAC 0.18%) It trails Apple as Buffett’s second-largest stock holding right now. But it’s not far ahead of American Express, with Berkshire’s stake in BofA worth about $36 billion and its stake in Amex worth $35.4 billion.

I think American Express can outperform Bank of America in the short term. More importantly, though, Buffett sold more than $3.8 billion of stocks in Q2. I won’t be surprised if his sale doesn’t go through.

4. The Coca-Cola Company

The Coca-Cola Company (K.O -0.07%) it is Berkshire’s fourth-largest stock holding today. I don’t think that will change in 2025.

Coca-Cola’s share price could appreciate over the next 16 months. However, I wouldn’t count on him growing enough to jump to third. And while Buffett loves the company and its stock, he hasn’t bought any additional shares of Coke in years, and likely won’t anytime soon.

5. Occidental Petroleum

Chevron it is currently No. 5 in Berkshire’s portfolio. But I expect another oil stock to replace it sometime next year: Occidental Petroleum (OXY -0.20%).

Not sure if Occidental will offer higher earnings than Chevron. The two actions often move in tandem. However, I would bet that Buffett is adding to his position in Oxy. Berkshire now owns 28.8 percent of Occidental, but has secured regulatory approval to increase its stake to 50 percent.

The best picks in these top five anticipated stocks

I think all five stocks I predict will be in Buffett’s top five in 2025 could be long-term winners. However, two stand out to me.

To borrow a slogan from years ago, Coca-Cola is — for income investors, at least. Coca-Cola is a dividend king with a forward dividend yield exceeding 2.8%.

What is the best group choice for growth investors? I’d go with Apple. The company plans to release its first generative AI functionality soon. Apple could enjoy a strong sales boost if its new Apple Intelligence features entice consumers to upgrade their iPhones. My prediction is that they will.