In a little over two weeks, one of Wall Street's most revered investors will step aside.
Billionaire Warren Buffett has held the reins at Berkshire Hathaway (BRK.A 0.33%)(BRK.B 0.31%) for 60 years, and over that time has overseen a cumulative return in his company's Class A shares (BRK.A) of almost 5,942,000%, as of the closing bell on Dec. 10. The now 95-year-old Oracle of Omaha is set to retire at year's end and hand over the CEO role to predetermined successor, Greg Abel.
Although Buffett hasn't been perfect as an investor (but who is?), he does offer a phenomenal track record of spotting amazing deals that are usually hiding in plain sight.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Over the last three years, he's been a selective investor amid a historically pricey stock market. Among the various characteristics that go into Buffett's process of evaluating a business, value has always been the most important. If he doesn't feel as if he's getting a good deal, he won't be a buyer.
Though Berkshire's billionaire boss does have one foot out the door, he has found a handful of deals in recent years that have checked all the right boxes. However, there's one stock, which you won't find in Berkshire Hathaway's $315 billion investment portfolio, that Warren Buffett has the utmost confidence in.
Berkshire Hathaway's billionaire boss has been a selective buyer in recent years
According to Berkshire's consolidated cash flow statements, the Oracle of Omaha has sold more stocks than he's purchased in each of the last 12 quarters (Oct. 1, 2022 – Sept. 30, 2025), totaling nearly $184 billion on an aggregate basis.
Despite this seemingly relentless net-selling activity amid a pricey market, Buffett has been a buyer of a handful of brand-name companies with sustainable moats and/or hefty capital-return programs.
NASDAQ: GOOGL
Key Data Points
Warren Buffett's splash buy of 2025 is unquestionably Google parent Alphabet (GOOGL 1.67%)(GOOG 1.76%). Berkshire's Form 13F filing with the Securities and Exchange Commission shows 17,846,142 Class A voting shares (GOOGL) were purchased during the September-ended quarter.
Google enjoys a virtual monopoly pertaining to global internet search share. According to data from GlobalStats, Google has accounted for 89% to 93% of worldwide internet search share over the trailing decade, which affords parent company Alphabet exceptional ad-pricing power. To boot, Alphabet is also the parent of streaming service YouTube, which is the second most-visited social site in the world.
Although Alphabet's advertising revenue allows it to take advantage of long-winded economic expansions, it's the company's cloud infrastructure service platform, Google Cloud, which offers the greatest sales and cash flow growth potential. Incorporating artificial intelligence (AI) solutions into Google Cloud can accelerate an annual sales growth rate that already tops 30%.
NASDAQ: DPZ
Key Data Points
Berkshire Hathaway's soon-to-be-retiring chief also wants his piece of the proverbial pie. Based on 13F filings, Buffett has overseen the purchase of Domino's Pizza (DPZ +0.26%) shares for five consecutive quarters.
Next to value, trust is arguably the most important trait that Buffett evaluates when considering a business for possible investment. Domino's has successfully built up trust with consumers through its transparent marketing campaigns. While occasionally admitting its mistakes, this transparency has helped keep customers loyal to the brand.
Domino's Pizza's management team has done a particularly good job of meeting or exceeding five-year growth initiatives, as well. The company's current five-year plan, dubbed "Hungry for MORE," emphasizes the value of its brand, franchisees, and team members, and leans into AI to increase output and improve its supply chain.
It's also worth mentioning that Domino's has increased its base annual dividend in each of the last 13 years and repurchases its stock on a somewhat regular basis.
Image source: Getty Images.
The Oracle of Omaha purchased this stock for 24 consecutive quarters
But neither Alphabet, Domino's, nor any of the more than three dozen stocks currently held in Berkshire Hathaway's $315 billion investment portfolio, for that matter, represents the stock Warren Buffett has the utmost confidence in.
To locate this mystery stock, investors simply have to peruse Berkshire's quarterly operating results. On the page immediately preceding the executive certifications, you'll find detailed monthly purchasing activity of the Oracle of Omaha's favorite stock to buy... shares of his own company!
Before July 2018, the rules governing share repurchases weren't conducive to buybacks. In order for Buffett to green-light the purchase of his own company's stock, its shares had to decline to or below 120% of their listed book value in the most recent quarter. Berkshire Hathaway stock never dipped below this threshold, resulting in no Class A (BRK.A) or Class B (BRK.B) shares being repurchased.
On July 17, 2018, Berkshire's board amended the clauses governing buybacks to get its CEO off the proverbial bench and into the game. The new rules allow for unlimited share repurchases as long as the company has at least $30 billion in combined cash, cash equivalents, and U.S. Treasuries on its balance sheet, and Buffett believes his company's stock is intrinsically cheap. This latter component is purposely vague to give Berkshire's CEO some discretion when buying back stock.
NYSE: BRK.B
Key Data Points
Between July 17, 2018, and June 30, 2024, a span of 24 consecutive quarters, the Oracle of Omaha spent nearly $78 billion to repurchase Berkshire Hathaway stock. For companies with steady or growing net income, such as Berkshire, a declining outstanding share count can result in higher earnings per share and a more attractive valuation.
But not even the stock Warren Buffett favors most gets a pass when it comes to valuation.
This 24-quarter streak of buyback activity has been interrupted by 16 straight months without Berkshire's CEO buying a single share. While Berkshire's stock often vacillated between a 30% and 50% premium to its listed book value during Buffett's buying streak, the share premium to book value has jumped to between 60% and 80% during much of the 16-month period where he's gone cold turkey.
To be clear, this doesn't mean Berkshire's soon-to-be-retiring CEO has abandoned his favorite stock. Between his yearly letter to shareholders and annual shareholder meeting, Buffett has made clear that he won't bet against America or its stock market. He's built Berkshire Hathaway into a trillion-dollar business by acquiring and investing in predominantly profitable, cyclical businesses that can capitalize on disproportionately long economic cycles.
There's no company Buffett has more confidence in over the long run than Berkshire Hathaway -- and his investing history since July 2018 proves it.
