Top Berkshire Hathaway Stocks to Consider in November

Investing in stocks is a significant decision that requires careful consideration. When considering stocks to buy, looking at what established investors like Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) are investing in can provide valuable insights. Berkshire Hathaway holds a diverse portfolio of stocks and exchange-traded funds (ETFs), with selections made famous by renowned investor Warren Buffett.

Recently, Berkshire Hathaway has sold a considerable amount of stocks to increase its cash reserves, raising speculations about a potential market downturn. However, the company still retains several stable, long-term investments. Three of the top stocks that are consistently recommended include Apple (AAPL), Coca-Cola (KO), and Amazon (AMZN).

1. Apple

Berkshire began investing in Apple in 2016 and currently holds a stake worth around $70 billion. This makes Apple the largest investment in Berkshire's portfolio, despite the company selling more than two-thirds of its shares over the past year.

While Apple's growth from iPhone sales has slowed, the company possesses a robust brand and excellent pricing power, sitting on $157 billion in cash and marketable securities. This financial strength allows Apple to continue expanding its operations with new investments and acquisitions. Over the last decade, Apple has repurchased 35% of its shares and has increased its dividend for 13 consecutive years.

Looking ahead, analysts project that Apple's revenue will grow by 8% and earnings per share (EPS) by 10% for 2025. This growth is anticipated from consistent iPhone sales, the expansion of their services, and the introduction of new generative artificial intelligence (AI) products. Although Apple’s stock trades at 30 times its expected earnings, it remains a solid option for investors in both rising and declining markets.

2. Coca-Cola

Berkshire's investment in Coca-Cola began back in 1988, and the company still holds $26 billion worth of shares, making up 8.5% of its portfolio. This investment has remained stable for over a decade, with no recent purchases or sales.

Coca-Cola has successfully adapted to changes in consumer preferences by diversifying its product lineup beyond soda, including bottled water, teas, juices, sports drinks, and even alcoholic beverages. This shift has led to consistent organic sales growth, earning Coca-Cola the title of a Dividend King, with 62 years of consecutively increasing dividends.

For 2024, Coca-Cola expects organic sales to grow by around 10%, with anticipated EPS growth ranging from 5% to 6%. Even amid challenges like inflation and a strong dollar, Coca-Cola has managed to offset these difficulties and maintain reasonable stock valuation at 22 times forward earnings, along with a forward dividend yield of 3% that is appealing as interest rates decrease.

3. Amazon

Berkshire's investment in Amazon started in 2019, with a current holding valued at $2 billion, representing 0.6% of its portfolio. As a leading player in both the e-commerce and cloud services sectors, Amazon stands out for generating substantial cash flow.

While Amazon experienced rapid growth during the pandemic, this growth slowed as market conditions normalized. Nevertheless, in the past year, Amazon’s business has stabilized, with its e-commerce segment recovering by optimizing delivery speeds and expanding its product offerings. Moreover, cloud services growth has picked up again as businesses continue to upgrade to accommodate new AI technologies.

Analysts project Amazon will see revenue and EPS growth of 11% and 63%, respectively, this year, and similar growth rates into 2025. Though the stock is priced at 34 times its anticipated earnings, it remains an attractive option for investors looking to capitalize on the growth in e-commerce and cloud industries in the long run.

Investors looking to position themselves effectively may find Apple, Coca-Cola, and Amazon to be reliable stocks to include in their portfolios.

Apple, Coca-Cola, Amazon