It's apparently popular for young traders to take shots at Warren Buffett these days for his recent underperformance -- and even I fell into that trap last month -- but don't buy into that nonsense. Buffett is the greatest investor of our time, and his track record with Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) over several decades of market-thumping dominance isn't something that we may ever see again.
Looking at Berkshire Hathaway's current portfolio of stocks, I see three names that I also own myself. Let's go over why I think Apple (NASDAQ:AAPL), Costco (NASDAQ:COST), and Sirius XM Holdings (NASDAQ:SIRI) are three Buffett stocks worth owning now.
Just a few years ago, Buffett swore off tech stocks, but that changed three years ago when he took a position in Apple. The country's most valuable company by market cap is now also Berkshire Hathaway's largest stock holding. Earlier this year, Buffett said Apple was Berkshire Hathaway's third largest business, after its insurance and railroad interests.
Apple hit another all-time high on Tuesday, but it's not too late to buy in. The bullish case for Apple has largely been the 5G iPhones that are expected to roll out earlier this year, but earlier this week the tech bellwether was able to wow developers and consumers alike with some of the neat things it's been working on.
From picture-in-picture video capabilities to the CarKey feature that will wirelessly unlock your vehicle, there are some cool features Apple is rolling out to make it more essential. With most of Apple's growth coming from its wearables and services businesses these days, it's comforting to know that its iOS gadgetry is also primed for a turnaround.
I only become a shareholder of the country's leading warehouse club operator last month, but I think we're going to be in for a long and harmonious relationship. Costco proved its all-weather appeal during the pandemic, thriving as one of the few bricks-and-mortar chains that didn't skip a beat during the COVID-19 shutdown.
U.S. comps were flat in April if you back out gas sales, rebounding to a 9.2% surge in May on that basis. E-commerce sales more than doubled last month. Even with some of its in-store businesses including optical, photofinishing, and food courts temporarily shuttered, Costco still found a way to hold its own. It even boosted its dividend earlier this quarter, a rare sight these days.
Sirius XM Holdings
There's a lot to like when it comes to satellite radio. Sirius XM was on the brink of bankruptcy a dozen years ago, but it has turned into a true media blue chip. It has rattled off a decade of annual profitability -- and steady growth in the process -- and Berkshire Hathaway has been there for the ride since 2016.
Growth is slowing, but with more than 30 million self-pay subscribers, it's hard to complain. Investors concerned about how the satellite radio monopoly will hold up in this era of shrinking car sales, but this is where its acquisition of Pandora is paying off by making Sirius XM a major player in streaming radio.
Buffett owns Sirius XM, but -- in a smart move -- Berkshire Hathaway owns an even larger position in Liberty SiriusXM (NASDAQ:LSXMA) (NASDAQ:LSXMK), Liberty Media's track shares that account for its 71.5% position in the satellite radio giant. Liberty SiriusXM has historically traded at a deep discount to the value of its Sirius XM position, and even if that value can't be unlocked without an actual sale it's still a smart way to play Sirius XM at a roughly 30% discount. Buffett knows how to score a good deal, and you can follow his lead by buying into some of his portfolio holdings.