Warren Buffett is widely considered one of the greatest investors of all time. And there's a good reason for that. He's produced phenomenal results for his investors in his nearly 70-year career as an investment manager.
His Buffett Limited Partnership compounded its capital at an annualized rate of 31.6% between 1956 and 1968. Since taking over Berkshire Hathaway (BRK.A -0.68%) (BRK.B -0.65%) in the middle of 1965, he's grown the value of its shares at nearly 20% per year.
So, when Buffett buys a new stock, the entire investing world pays attention. That said, Buffett hasn't seen a lot of opportunities to get excited about over the last few years. Berkshire Hathaway has been a net seller of stocks for 11 straight quarters. But Buffett and his team have sunk over $4 billion into 13 different stocks over the last six months or so, and one stands out as the best of the bunch.
Image source: The Motley Fool.
Here's what Buffett's been buying
Berkshire Hathaway is required to file Form 13F with the Securities and Exchange Commission (SEC), disclosing its portfolio holdings at the end of every quarter. While Buffett is a long-term buy-and-hold investor, he still makes some significant changes every quarter. As noted, he's been selling a lot of stocks as of late.
But the most recent 13F filing revealed purchases of 10 stocks in Berkshire's portfolio in the second quarter.
- UnitedHealth (UNH -0.64%)
- Nucor
- Lennar
- Constellation Brands (STZ 0.31%)
- Pool Corp
- Lamar Advertising
- Allegion
- Heico
- Chevron
- Domino's Pizza
According to Berkshire's second-quarter earnings report, the company spent $3.9 billion on the purchase of equities during the period.
In addition to Form 13F, Berkshire is required to file timely Form 4 disclosures for purchases or sales in equities where it owns a stake of 10% or more. It filed one such Form 4 on Aug. 4, revealing a purchase of about $106 million worth of Sirius XM (SIRI -2.02%).
In late August, Mitsubishi (MTSU.Y -0.17%) filed a notice to shareholders revealing Berkshire subsidiary National Indemnity had increased its stake in the business from 9.74% to 10.23% between March and August, purchasing an additional 1.89 million shares for an estimated $42 million based on share prices and exchange rates in the period. Mitsui also stated that Berkshire raised its stake in the business, but declined to provide exact figures.
There are a lot of great investment candidates among the 13 stocks Buffett has disclosed purchasing over the last six months.
Buffett's decision to buy into leading health services company UnitedHealth at a time when it faces considerable pressure on its operating results is an example of his "be greedy when others are fearful" strategy.
The stock has been beaten down with short-term operating challenges from rising insurance utilization and increased medical expenses. It also suffers from the overhang of an investigation surrounding its Medicare Advantage billing, which could result in billions in clawbacks and penalties. Still, the long-term outlook for the massive insurance provider remains strong, and Buffett took the opportunity to buy shares of the beaten-down stock.
Likewise, Buffett continues to pile into Sirius XM. While Sirius is working to maintain its subscriber base amid the rising popularity of music streaming services and podcasts, it's still generating significant amounts of cash each year from its paid subscriptions and growing advertising business. Considering its healthy dividend and single-digit earnings multiple, it's no surprise Buffett and his team continue adding shares.
Buffett's investments in Mitsubishi and Mitsui is another notable move. In his 2024 letter to shareholders, he stated that he would likely add shares this year, after receiving permission to increase Berkshire's stake beyond 10% at each of the five Japanese trading houses. While the U.S. stock market continues to trade at historically high valuations, the Japanese market isn't nearly as expensive. So, the large Japanese conglomerates remain an opportunity for Buffett to deploy significant capital for Berkshire shareholders.
But one stock among Buffett's recent buys stands out as an even better opportunity for long-term investors looking to follow in the Oracle of Omaha's footsteps.
A bargain stock with premium brands
The crux of Warren Buffett's investment strategy is finding well-run companies with long-term competitive advantages. Occasionally, those companies face headwinds from both macroeconomic forces and more specific one-off events, but their long-term potential remains intact. That's when Buffett can swoop in and buy shares at a discount.
As such, it wouldn't be a surprise if Buffett continues to add to Berkshire's stake in Constellation Brands. The premium beer distributor updated its fiscal 2026 outlook at the start of September, revising its expected beer sales lower, as macroeconomic uncertainty has reduced the purchase of premium beers, especially among Hispanic consumers, who account for a huge portion of its sales.
The company's second-quarter earnings report showed a dip in beer sales (along with a continued decline in its spirits business), as expected. The company's profit margin held up well, however, exhibiting the strength of its top brands, like Modelo, Corona, and Pacifico. Price and mix were once again positive contributors to revenue but not enough to offset the volume decline. As a result, earnings per share came in better than expected.
Furthermore, Constellation is developing a pipeline of new products around its premium brands, including nonalcoholic, low-calorie, and ready-to-drink cocktails. Constellation is pursuing the growing opportunities in those spaces and fending off competition.
The overall strength of Constellation's beer brands is also evident in its relative market performance. While beer sales slumped over the past few years, the company has been able to grow its beer sales by 45% between 2020 and 2024. Slower growth in 2025 and the expected step back in 2026 have pushed the share price lower year to date, but the brand strength is as good as always. That's further supported by Constellation's national advertising campaigns positioning its imported beers as premium products, enabling it to raise prices amid a slowdown in purchasing.
With the stock trading for just 12.5 times forward earnings expectations, the stock is an absolute bargain. Even with lower sales expectations in the near term, investors should find that buying at the current discount price pays off in the long run, as its efforts to position its products and market new ones with strong brands pay off when macroeconomic trends improve.
