7 Stocks Warren Buffett Loves and You Should Too

Warren Buffett, the legendary investor and chairman of Berkshire Hathaway, has built his fortune by investing in companies with enduring competitive advantages, strong management, and consistent cash flows. His portfolio isn’t just a collection of stocks; it’s a roadmap for long-term wealth creation. While Buffett has been a net seller of stocks for 12 straight quarters amid market uncertainties, certain holdings remain cornerstones of his strategy. These picks emphasize safety, dividends, and resilience—perfect for investors bracing for potential economic clouds in 2026 and beyond.

In this article, we dive into

seven stocks

that Buffett loves and why you should consider them too. From energy giants to consumer staples, these companies offer diversified exposure to proven business models. We’ll examine their operations, dividend yields, analyst targets, and Buffett’s stake, drawing on recent data as of early 2026. Whether you’re a beginner or seasoned investor, these selections highlight Buffett’s timeless philosophy: buy quality businesses at fair prices and hold forever.

Why Follow Warren Buffett’s Stock Picks?

Buffett’s success stems from his value investing approach, popularized through his annual letters and Berkshire Hathaway filings. He favors companies with

economic moats

—barriers like brand power, cost advantages, or network effects that protect profits. As of late 2025, Berkshire holds massive positions in consumer goods, energy, and finance, reflecting caution in a high-valuation market. Despite selling aggressively, Buffett recently added $4.3 billion to Alphabet (GOOGL), signaling selective buying in undervalued tech.

Key reasons to emulate him:

• Proven Track Record: Berkshire’s stock has compounded at 20% annually since 1965, far outpacing the S&P 500.
• Dividend Focus: Buffett prioritizes reliable payouts, with many holdings raising dividends for decades.
• Risk Management: Holdings like these provide stability during downturns, as seen in past recessions.
• Long-Term Horizon: Buffett views stocks as businesses, not tickers—ideal for patient investors.

Now, let’s explore the

seven standout stocks

from his portfolio.

1. Coca-Cola (KO): The Timeless Beverage Empire

Coca-Cola Co. (NYSE: KO) is Buffett’s longest-held major position, with Berkshire owning about 400 million shares worth billions. Founded in 1892, it’s the world’s largest beverage company, distributing over 500 brands in 200+ countries at a rate of 1.9 billion servings daily. Its

2.86% dividend yield

has been paid consistently, making it a staple for income investors.

The portfolio boasts 20 billion-dollar brands, including:

• Coca-Cola, Diet Coke, Coca-Cola Zero Sugar
• Fanta, Sprite, and regional variants like Fanta Zero Orange
• Juices like Simply Orange, Minute Maid
• Water brands: Dasani, Topo Chico, Smartwater
• Energy and teas: Powerade, Fuze Tea, Gold Peak

Beyond sodas, Coca-Cola owns 16.7% of Monster Beverage (MNST), fueling growth in energy drinks. Bank of America rates it a Buy with an $80 target, citing global distribution dominance. In 2026, with consumer staples resilient amid inflation, KO remains a defensive powerhouse.

2. Chevron (CVX): Energy Sector Stability

Chevron Corp. (NYSE: CVX) represents Buffett’s bet on integrated energy. This multinational operates in oil, gas, and chemicals worldwide, with segments in upstream (exploration), downstream (refining), and midstream. It boasts an

AA credit rating

, strong margins, and a

4.58% dividend yield

—raised 5% in 2025.

Chevron’s diversification includes cash management, real estate, and tech ventures, buffering oil price volatility. Mizuho’s Outperform rating targets $206, driven by global demand recovery. As geopolitical tensions persist into 2026, Chevron’s scale positions it as a safer energy play than pure upstream firms.

3. Kraft Heinz (KHC): Food Essentials in Any Economy

Kraft Heinz Co. (NYSE: KHC), formed from the Heinz-Kraft merger, is North America’s third-largest food and beverage firm. It thrives on necessity—everyone eats—with an attractive

6.63% dividend yield

. Operating in eight platforms like Taste Elevation, Meats, and Coffee, it serves North America, International Developed Markets, and Emerging Markets.

Iconic brands include:

• Heinz ketchup, Oscar Mayer meats
• Kraft cheeses, Philadelphia cream cheese
• Lunchables, Velveeta, Ore-Ida fries
• Capri Sun, Kool-Aid, Jell-O
• International: Wattie’s, Golden Circle

DZ Bank rates it Strong Buy at $31, noting recession-proof demand. In 2026, as budgets tighten, KHC’s value brands shine.

4. Kroger (KR): Grocery Retail Resilience

Kroger Co. (NYSE: KR), a supermarket giant, operates food-drug stores, multi-department outlets, and 1,613 fuel centers. It manufactures private-label foods and sells online, yielding

2.15% dividends

. Evercore ISI’s Outperform at $77 highlights its scale in essentials.

In inflationary times, Kroger’s pricing power and loyalty programs (e.g., digital coupons) drive traffic. It’s a conservative pick for consumer stability.

5. American Express (AXP): Premium Financial Services

Buffett has long admired American Express for its brand moat in payments. AXP offers credit cards, travel services, and merchant fees, with a

1.2% yield

backed by 60+ years of increases. Its affluent customer base weathers recessions better, posting strong 2025 earnings. Buffett’s stake underscores trust in CEO management.

6. Bank of America (BAC): Banking Stalwart

Bank of America (NYSE: BAC) provides deposit, lending, and wealth services globally. Buffett’s multi-billion position reflects confidence in its deposit base and digital banking growth. Yielding around

2.5%

, it’s rated favorably amid rate cuts in 2026.

7. Apple (AAPL): Tech Crown Jewel

Apple is Berkshire’s largest holding, valued for ecosystem lock-in (iPhone, services). Despite tech volatility, Buffett praises its capital allocation. With AI features boosting 2026 iPhones, AAPL offers growth beyond dividends.

Performance Comparison Table

Stock	Ticker	Dividend Yield	Analyst Target	Buffett’s Stake (Est.)
Coca-Cola	KO	2.86%	$80	400M shares
Chevron	CVX	4.58%	$206	Major
Kraft Heinz	KHC	6.63%	$31	Significant
Kroger	KR	2.15%	$77	Key holding
AmEx	AXP	1.2%	N/A	Long-term
Bank of America	BAC	2.5%	N/A	Billions
Apple	AAPL	0.5%	N/A	Largest

Frequently Asked Questions (FAQs)

Q: Why does Warren Buffett prefer dividend stocks?

A: Dividends provide tangible returns and signal financial health, aligning with his focus on cash-generating businesses.

Q: Are these stocks safe for 2026?

A: Yes, their strong balance sheets and moats offer defense against downturns, as Buffett builds cash for opportunities.

Q: How much of Berkshire is in these stocks?

A: Over 60% in top-five forever holds, per recent analyses.

Q: Can beginners invest in them?

A: Absolutely—use index funds or DRIPs for easy entry.

Q: What’s Buffett’s outlook for 2026?

A: Cautious; he’s hoarding cash for ‘dark clouds’ every decade.

These stocks embody Buffett’s wisdom: invest in what you understand, prioritize quality, and think decades ahead. While past performance isn’t indicative of future results, their fundamentals suggest enduring value.