This month, Berkshire Hathaway (BRK.A +0.09%)(BRK.B +0.58%), the famous holding company led by legendary investor Warren Buffett for decades, released its latest 13F filing, which reports on the trades the company made during the third quarter of this year. With Buffett set to retire at year's end, it was the second-to-last 13F filing with him at the helm.
Buffett has aggressively raised Berkshire Hathaway's cash levels over the past several years, a signal that he may view the stock market as broadly overvalued. That said, Berkshire Hathaway did some buying in the third quarter.
Here are three Warren Buffett stocks to consider buying hand over fist following Berkshire Hathaway's latest trades.
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1. Alphabet
Berkshire Hathaway added a single entirely new position to its portfolio in the third quarter -- internet and technology giant Alphabet (GOOGL +3.50%)(GOOG +3.33%). The parent company of Google is a multitrillion-dollar market cap juggernaut, with operations across internet search and applications, cloud computing, artificial intelligence (AI), self-driving vehicles, and more.
NASDAQ: GOOGL
Key Data Points
Alphabet's recent earnings report highlighted its strong business performance across the company. Its Google Cloud segment is thriving, and impressive developments continue to hit the news wires. This includes the company's latest large language model Gemini 3, as well as new expansions in its Waymo autonomous ride-hailing service.
Berkshire's initial stake in Alphabet is worth approximately $5.1 billion, a sizable position that's just outside Berkshire's top 10. It will be interesting to see whether Berkshire continues buying shares. The stock is still reasonably priced at 27 times 2025 earnings estimates, with Wall Street analysts anticipating 15% to 16% annualized earnings growth over the next three to five years.
2. Domino's Pizza
Buffett continues to nibble at Domino's Pizza (DPZ +2.56%). Berkshire Hathaway first invested in the third quarter of last year and has added shares every quarter since then. The shares added in the third quarter boosted Berkshire's stake in the popular pizza chain by more than 13%.
NASDAQ: DPZ
Key Data Points
Domino's has over 21,700 stores worldwide. It operates a franchise model, which allows it to expand quickly by placing the financial costs of building and operating restaurants on franchisees and generating revenue from fees and royalties. That results in smaller (but more profitable and steadier) revenue streams. Domino's has paid and raised its dividend for the past 12 years.
The stock currently trades at 23 times the company's 2025 earnings estimates, an attractive valuation for a business that analysts expect to grow earnings by 10% to 11% annually over the next three to five years. Based on Berkshire's continued appetite for Domino's Pizza stock, Buffett apparently sees value, too. His eye for stock valuations, along with his discipline and long-term mindset, has made him a living legend.
3. Chubb
Insurance is one of Buffett's specialties and has been ever since Berkshire Hathaway invested in (and later acquired) GEICO decades ago. Buffett and Berkshire have been scooping up shares of Chubb (CB +0.67%) hand over fist since about two years ago, adding to their stake several times. The company's stake is now worth $9.1 billion and is one of Berkshire's larger holdings.
NYSE: CB
Key Data Points
Chubb is a long-standing insurance giant. It has been in business for over 100 years and operates worldwide. Chubb offers various types of insurance, including property and casualty, accident, supplemental health, and life. The company has paid and increased its dividend for 31 consecutive years, reflecting Chubb's high-quality management, business execution, and financials.
Even though the stock is trading slightly above its average price-to-book value ratio over the past decade, Berkshire's third-quarter buy raised its stake by nearly 16%, the most significant increase in Berkshire's investment since early last year. The buying also comes while Berkshire continues to trim various other holdings to raise cash. These actions strongly suggest that Buffett continues to recognize value in the stock.
