Warren Buffett was once again a net seller of stocks in the first quarter of 2025. This marked the 10th consecutive quarter that the legendary investor sold more than he bought.
However, Buffett (or perhaps his investment managers, Todd Combs and Ted Weschler, or even his future successor as CEO, Greg Abel) nonetheless did some buying for Berkshire Hathaway's (NYSE:BRK-A) (NYSE:BRK-B) portfolio. He (or they) bought 13 stocks in Q1. Here are those stocks -- and which one is the best of the bunch.
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All the stocks Buffett and/or his team bought
The biggest purchase made by Buffett and/or his team during Q1 was with Constellation Brands (NYSE:STZ). Berkshire increased its stake in the alcoholic beverage maker by 113.5%. Its position in Constellation Brands at the end of the quarter totaled $2.2 billion.
Pool Corp. (NASDAQ:POOL) was another major buy during Q1. Berkshire boosted its stake in the pool supplies company by 144.5% to roughly 1.46 million shares. The conglomerate owned a little over $466 million worth of Pool stock at the end of the quarter.
Buffett or one of the other investment managers increased Berkshire's position in aerospace and electronics manufacturer Heico (NYSE:HEI) by 10.7% in Q1. Domino's Pizza (NASDAQ:DPZ) was another significant purchase, with Berkshire increasing its stake in the pizza chain by an additional 10%.
As for relatively smaller transactions, Berkshire picked up around 2.31 million more shares of Sirius XM Holding (NASDAQ:SIRI), up 1.96% from the end of 2024. The conglomerate also increased its positions in Occidental Petroleum (NYSE:OXY) and Verisign (NASDAQ:VRSN) by 0.29% and 0.14%, respectively.
Berkshire bought more shares of the five Japanese trading houses in its portfolio, too: Itochu (OTC:ITOCF) (OTC:ITOCY), Marubeni (OTC:MARUF) (OTC:MARUY), Mitsubishi (OTC:MSBHF), Mitsui (OTC:MITSF) (OTC:MITSY), and Sumitomo (OTC:SSUM.F) (OTC:SSUM.Y). Buffett hinted that Berkshire would add to its positions in these Japanese stocks in his letter to shareholders earlier this year.
Finally, Buffett or one of his investing lieutenants initiated a new position in a mystery stock. Berkshire Hathaway requested confidential treatment for at least one new holding. The company did the same thing in 2023 when it began buying shares of property and casualty insurer Chubb.
How the stocks compare
Buffett remains a value investor at heart. Of the 12 known stocks bought for Berkshire's portfolio in Q1, one appears to be the biggest bargain -- Sirius XM. The satellite radio operator's shares trade at only 7.8 times forward earnings. Its price-to-earnings-to-growth (PEG) ratio, which is based on analysts' five-year earnings growth projections, is a low 0.66.
Most of the other Berkshire purchases in Q1 don't have valuations that are all that attractive. However, all five Japanese stocks look relatively inexpensive. So does Constellation Brands, with its forward earnings multiple of 14.6.
Although Berkshire doesn't pay a dividend, Buffett likes getting dividends from the companies in which he invests. Sirius XM again stands out on this front with its high forward dividend yield of 4.83%. Again, all five Japanese stocks offer solid dividends as well. Mitsubishi and Marubeni especially stand out with yields of 3.8% and 3.65%, respectively.
What about growth? I'd put Heico and Domino's at the top of the list. Heico's sales jumped 15% year over year in its latest quarter, while Domino's reported revenue growth of 4.7%. Both companies should be able to continue delivering solid growth that's higher than the other stocks purchased by Berkshire in Q1. However, their valuations reflect significant growth expectations baked into the share prices.
The best of the bunch
Sirius XM arguably checks off more boxes than any of the other stocks added to Berkshire's portfolio in Q1. The stock's valuation is low, and its dividend is juicy. I'm concerned, though, about Sirius XM's growth prospects over the near term.
I think Buffett's favorites among the stocks bought in Q1 are Occidental and the five Japanese trading houses. He has identified these six stocks as ones he expects Berkshire to own "indefinitely." Buffett is probably most enthusiastic about the Japanese stocks. The legendary investor even said during the recent shareholder meeting, "I would say that -- I'll speak for Greg [Abel] beyond me -- in the next 50 years, we won't give a thought to selling those positions."
So, which stock bought by Buffett and his team during Q1 is the best of the bunch (other than the mystery stock, of course)? I'll go along with the "Oracle of Omaha" and choose one of the Japanese stocks.
My pick is Marubeni because its valuation is most attractive, its forward dividend yield is outstanding, and it offers a high level of diversification thanks to the multiple businesses the company owns. However, all five Japanese companies have similar business models and growth prospects. I don't think investors would go wrong buying any of Buffett's favorite international stocks.
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Keith Speights has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway, Domino's Pizza, and VeriSign. The Motley Fool recommends Constellation Brands, Heico, and Occidental Petroleum. The Motley Fool has a disclosure policy.
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