Warren Buffett hasn't bought many stocks over the last two years, almost certainly because of high valuations. However, the stock market pullback has caused the share prices of several stocks the legendary investor might like to fall significantly.
We know for a fact Buffett has plenty of money to put to work if he wants: Berkshire Hathaway ended 2024 with a massive cash stockpile of $334 billion. Which stocks is he buying during the market pullback?
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The ones we know about
Normally, the answer to that question would be that we don't know which stocks Buffett is buying. Berkshire Hathaway submitted its latest 13F filing to the U.S. Securities and Exchange Commission (SEC) on Feb. 14, 2025, revealing its holdings at the end of the fourth quarter. The conglomerate probably won't file its next 13F disclosing its first-quarter holdings until mid-May.
However, sometimes Buffett comments publicly about stocks he has bought or sold before the 13F is filed. In other cases, Berkshire must submit another regulatory filing related to its investments. The latter situation occurred last week.
Berkshire revealed on March 17, 2025, that it bought additional shares of five Japanese stocks: Sumitomo (OTC:SSUM.F) (OTC:SSUM.Y), Marubeni (OTC:MARUF) (OTC:MARUY), Itochu (OTC:ITOCF) (OTC:ITOCY), Mitsui (OTC:MITSF) (OTC:MITSY), and Mitsubishi (OTC:MSBHF) (OTC:MTSU.Y). Buffett said in his 2023 letter to Berkshire Hathaway shareholders that these Japanese trading houses were among a select group of stocks that he plans to "maintain indefinitely."
He also hinted that Berkshire would grow its position in these Japanese stocks in his most recent shareholder letter. Buffett wrote earlier this year, "Over time, you will likely see Berkshire's ownership of all five increase somewhat."
Other guesses
Could Buffett be buying other stocks during the market pullback? Maybe, but we can't know for sure. If I had to guess, though, I'd say there's pretty good odds that he continued to add to Berkshire's already-large stake in Occidental Petroleum (NYSE:OXY).
Buffett has bought shares of Occidental in nearly every quarter since he initiated a position in the oil and gas producer in early 2022. It's one of the handful of stocks he told Berkshire shareholders he wants to own indefinitely. Importantly, Berkshire owns warrants that allow it to buy more of Oxy at a fixed price.
I wouldn't be surprised if Buffett has added to Berkshire's position in Sirius XM Holdings (NASDAQ:SIRI), either. The satellite radio operator seems to have become one of the multi-billionaire investor's favorites in recent months. Sirius XM is also cheap with shares trading at only 7.8 times forward earnings.
Sometimes, Buffett builds up stakes in companies over several quarters. I think it's possible that he (or one of his investment managers, Todd Combs and Ted Weschler) could be doing this with recent additions to Berkshire's portfolio such as Constellation Brands (NYSE:STZ), Domino's Pizza (NASDAQ:DPZ), and/or Pool Corporation (NASDAQ:POOL).
Which of these is the most likely stock Buffett is buying during the overall market decline? My money would be on Constellation Brands. Shares of the beer and wine maker best known for its Corona and Modelo premium beers have plunged in 2025 after Constellation provided a disappointing outlook for 2025. Some investors ran for the hills, but Buffett, who always looks at the long term, could see this sell-off as a buying opportunity.
Should you buy these stocks too?
Investors shouldn't buy any of these stocks solely because Buffett is (or could be) buying them. That said, I think several of these stocks are worthy of investors' consideration.
Income investors will probably like Sirius XM's forward dividend yield of 4.5%. This attractive dividend appears to be safe with the company's low payout ratio of 31.5% and strong free cash flow.
Occidental Petroleum is my favorite of the group, though. I suspect it's Buffett's favorite, too. The company is a leader in the North American oil and gas industry. It's pioneering carbon capture and storage technology. Oxy stock is also valued reasonably, with a forward earnings multiple of 13.4.
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Keith Speights has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway and Domino's Pizza. The Motley Fool recommends Constellation Brands and Occidental Petroleum. The Motley Fool has a disclosure policy.
