Thursday, April 24, 2025

Warren Buffett Loaded Up on These Stocks As the Market Sank. Should You Buy Them Too?

 


Warren Buffett Loaded Up on These Stocks As the Market Sank. Should You Buy Them Too?

When markets tumble, most investors panic. But Warren Buffett—legendary investor and CEO of Berkshire Hathaway—tends to do the opposite: he goes shopping.

Buffett has long preached the virtue of being “fearful when others are greedy, and greedy when others are fearful.” True to form, during recent market downturns, Buffett and his team have aggressively added to positions in a select group of companies. The question is: should you follow his lead?

Buffett’s Recent Buys: A Closer Look

According to Berkshire Hathaway’s latest 13F filings, these are some of the stocks Buffett bought as the broader market dipped:


1. Apple Inc. (AAPL)

Despite already being Berkshire’s largest holding, Buffett increased his stake in Apple. He’s called it “probably the best business I know in the world.”

  • Why Buffett Likes It: Strong brand loyalty, massive cash flow, and a powerful ecosystem.

  • Investment Case for You: Apple may not be a deep value stock anymore, but it’s a tech titan with consistent performance and shareholder-friendly policies (buybacks and dividends).


2. Occidental Petroleum (OXY)

Buffett has been steadily buying shares of this energy giant, bringing Berkshire’s stake to over 25%.

  • Why Buffett Likes It: Solid balance sheet, rising demand for oil, and strong free cash flow.

  • Investment Case for You: With global energy prices fluctuating, a bet on Occidental is a bet on long-term oil demand—possibly risky, but potentially rewarding.


3. Bank of America (BAC)

Buffett added more shares of BofA during banking sector volatility.

  • Why Buffett Likes It: Strong management, a wide moat, and favorable interest rate exposure.

  • Investment Case for You: If you believe interest rates will stay elevated or rise again, big banks like BofA could benefit from wider net interest margins.


4. Chevron Corp. (CVX)

Another energy name on Buffett’s buy list, Chevron adds diversity to Berkshire’s energy exposure.

  • Why Buffett Likes It: Reliable dividends, international exposure, and strong cash reserves.

  • Investment Case for You: Like Occidental, Chevron plays into the energy rebound narrative, but with a more global footprint and a long history of dividend payments.


Should You Follow Buffett’s Lead?

Buffett’s investing philosophy is rooted in long-term value, strong fundamentals, and economic moats. But before copying his moves, consider:

  • Your Time Horizon: Buffett thinks in decades, not quarters. If you're looking for a quick win, his picks might test your patience.

  • Risk Tolerance: Even Buffett’s picks can underperform or carry risk—especially in cyclical sectors like energy and finance.

  • Portfolio Fit: Blindly buying what Buffett buys ignores your personal goals, diversification, and financial situation.

Bottom Line

Warren Buffett has an unparalleled track record, and his buys during market dips often look brilliant in hindsight. But even the Oracle of Omaha isn’t infallible.

If you believe in the long-term stories of Apple, Occidental, Bank of America, or Chevron—and they align with your financial goals—these could be smart additions to your portfolio. But never forget: even Buffett says, “Don’t invest in something you don’t understand.”


Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult a qualified financial advisor before making investment decisions.

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