If I were Warren Buffett, I probably wouldn't be able to wipe the smile off my face. While the overall stock market has fallen this year, his beloved Berkshire Hathaway has delivered an impressive gain of around 17%.
Moreover, several stocks in Berkshire's portfolio have been big winners in 2025. The Coca-Cola Company (KO +0.79%) is in that group, jumping nearly 10% year to date. Is Coca-Cola the best Buffett stock to buy right now?
NYSE: KO
Key Data Points
Why Coca-Cola stock is sizzling and not fizzling
How has Coca-Cola been able to defy the market sell-off so easily? I think the answer lies in a statement made by CEO James Quincey in the company's February press release announcing its fourth-quarter results. Quincey said, "Our all-weather strategy is working, and we continue to demonstrate our ability to lead through dynamic external environments."
His reference to an "all-weather strategy" reflects Coca-Cola's aim to grow its business regardless of what's happening in the economy. And Quincey was right that the strategy is working.
Coca-Cola reported Q4 net revenue of $11.5 billion, up 6% year over year. Its earnings per share increased 12% year over year on both a GAAP and adjusted basis. The company's operating margin rose to 23.5% from 21% in the prior year period.
I suspect, though, that much of Coke's outperformance versus the broader market stems from the fact that the stock is widely viewed as a safe haven. That's true of many consumer staples stocks. But with a successful track record that dates back to 1886 and one of the strongest brands ever, Coca-Cola ranks among the favorites for investors seeking refuge from market turmoil.
Other worthy contenders
However, Coca-Cola's solid gains and safe haven credentials don't necessarily make it the best Buffett stock to buy right now. There are other worthy contenders.
As mentioned earlier, Berkshire Hathaway itself has delivered a stronger performance than Coca-Cola so far this year. Even better, Buffett has led the conglomerate to amass a huge cash stockpile that he can use to buy great stocks at bargain prices if the stock market sell-off continues.
Chinese electric vehicle (EV) maker BYD is by far the biggest winner in 2025 for Buffett. The stock has skyrocketed nearly 50%, with the spectacular performance fueled in part by excitement over the company's latest self-driving technology.
Several other Buffett stocks have also outperformed Coca-Cola this year. They include two stocks of Japanese trading houses the legendary investor really likes: Marubeni and Sumitomo. Latin American fintech leader Nu Holdings, wireless company T-Mobile and internet domain registry provider VeriSign have delivered higher returns than Coke as well.
Is Coca-Cola the best Buffett stock to buy?
With all of this competition, is Coca-Cola the best Buffett stock to buy right now? I think the answer depends on your investing style.
Coke isn't a good fit for growth investors. These investors will probably be better off jumping on the BYD bandwagon or taking advantage of Amazon's steep decline to buy shares of the e-commerce and cloud services giant.
Value investors will also probably want to look elsewhere within Buffett's portfolio. Coca-Cola trades at a forward earnings multiple of roughly 23.6. That isn't ridiculously expensive, but it's not cheap.
On the other hand, I view Coca-Cola as an excellent pick for income investors. The food and beverage company offers a forward dividend yield just a hair below 3%. It's also a Dividend King with 63 consecutive years of dividend increases. No other Buffett stock can claim such an impressive dividend track record.
