Warren Buffett, also known as the "Oracle of Omaha," served as CEO of Berkshire Hathaway from 1965 until 2025. Over that 60-year period, the holding company's shares gained by around 20% annually on average, compared to annual returns averaging 10.3% for the S&P 500.
Buffett is no longer running day-to-day operations at Berkshire, but he's still the company's chairman. More importantly, Berkshire has yet to make any changes to its operational and investing approach.
While the company owns scores of subsidiaries outright, it also continues to invest hundreds of billions of dollars into publicly traded stocks. Of the 41 stocks in the Berkshire Hathaway portfolio, DaVita (DVA 1.13%) and Kraft Heinz (KHC 3.50%) stand out as screaming buys, while UnitedHealthcare Group (UNH 2.78%) is a stock to avoid.
Image source: The Motley Fool.
Strong quarterly results could mark the start of a DaVita recovery
Berkshire Hathaway is a longtime DaVita shareholder, making its first investment in this kidney dialysis center operator in 2011 .DaVita has performed well in the past, but in more recent years, concerns about current results and future growth have weighed on its stock price.
NYSE: DVA
Key Data Points
However, DaVita could finally be turning a corner. Earlier this week, the company beat expectations with its latest quarterly results. Moreover, the company released 2026 earnings guidance that also exceeded expectations.
Expecting earnings per share between $13.60 and $15 this year, DaVita could be trading as low as 9 times forward earnings right now. Shares have surged by over 30% since the earnings release, but there may be room for further multiple expansion. Previously, DaVita has traded for 13 to 14 times forward earnings.
Kraft Heinz was a losing investment for Buffett, but for new investors, there may be an opportunity
Berkshire Hathaway's 27% stake in Kraft Heinz, worth around $7.5 billion at current prices, is one of its largest equity positions. However, after losing billions on the investment, Berkshire disclosed it may sell at least part of its stake.
NASDAQ: KHC
Key Data Points
That said, for new investors, Buffett's loss could be your gain. Kraft Heinz currently trades for around 9 times forward earnings, a discount compared to peers. Not only that, the company plans to split into two separate entities, one holding faster-growing like Heinz and Philadelphia, the other owning slower-growing brands like Oscar Meyer and Lunchables.
Although Buffett is skeptical, Kraft Heinz's management believes this could help unlock tremendous value. A past transaction in the packaged foods space supports their argument. Back in 2023, Kellogg did a similar separation of its high-growth and low-growth businesses by splitting into Kellanova and WK Kellogg. Within two years of the split, competitors bought both entities, creating substantial value for shareholders.
It's still too early to buy the dip with UnitedHealth Group
Last summer, Berkshire Hathaway disclosed that it had purchased 5 million UnitedHealth Group shares. At the time, it seemed as though this purchase marked the start of a rebound for the struggling healthcare company.
NYSE: UNH
Key Data Points
However, while UnitedHealth continued to bounce back through the end of 2025, it's been a different story thus far in 2026. First, the U.S. government announced lower-than-expected increases to Medicare Advantage payments. In turn, this led UnitedHealth to walk back its full-year 2026 guidance, sending the stock from $350 to around $280 per share.
Yet while UnitedHealth has dipped, think twice before buying the dip. UnitedHealth currently trades for 16 times forward earnings, a premium to peers. With the company's past growth story still dismantling, there may still be room for further multiple compression.
