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2 Warren Buffett Stocks You’d Be Crazy Not to Buy in August 2025

2 Warren Buffett Stocks You’d Be Crazy Not to Buy in August 2025

Author:
foolstock
Published:
2025-08-05 21:23:00
15
3

Wall Street's favorite oracle still knows how to print money—even in a crypto-crazed world.

Buffett's timeless bets that laugh at market volatility

While degens chase shitcoin pumps, these blue-chip titans compound gains like clockwork. No flashy blockchain promises—just cold, hard cash machines vetted by the GOAT.

Why these picks crush 'innovative' fintech startups

Hint: They actually turn profits. Imagine that—businesses making money without vaporware roadmaps or 'community-driven tokenomics.' How delightfully retro.

Sleep-well assets that outperform 99% of crypto portfolios... with 0% of the existential dread.

Warren Buffett in a conference hall.

Image source: Getty Images.

An incredible financial powerhouse

(AXP -0.65%) has perhaps the best combination of growth and asset quality in the financial industry. Its 2% net charge-off rate is about one third of what(COF 0.57%) and other peers report, and the 30-day delinquency rate is less than half of the industry average.

Recent momentum has been strong, with revenue up by 9% year over year in the most recent quarter and adjusted EPS up by 17%. International growth was impressive, as was the fact that nearly two-thirds of new accounts are from the extremely important millennial and Gen-Z generations. Card fee income (annual fees, mostly) was up by 20% year over year, thanks to the success of some of the company's higher-end card products. The company continues to grow its ecosystem, and the recently announced(COIN -6.35%) (COIN -6.35%) One Card is just one example of a big co-branding win.

Even though American Express has been a strong performer with shares up nearly 30% over the past year, the stock still looks attractive at about 18.5 times forward earnings. If the pending refreshes of several key products -- including the flagship, highly lucrative Platinum Card -- are successful, AmEx's fee income growth could get even better.

The best "Buffett stock" of all

You might not need to dig into Berkshire's portfolio to find the best "Buffett stock" to buy. I'd argue that perhaps the best Buffett stock of all to buy right now is Berkshire Hathaway itself.

Here's why. Since Warren Buffett announced his planned retirement from the CEO position at the company's May annual meeting, Berkshire's stock price has fallen by about 14%. And this is despite strong operating earnings, a massive cash stockpile, and generally strong performance in the stock portfolio. Just to name a few of the largest positions, during the same period where Berkshire fell 14%, AmEx has risen by 11%,(BAC -0.65%) is up by 14%, and(CVX 1.19%) is also up by double digits. In fact, every single one of Berkshire's 10 largest stock positions have outperformed the conglomerate's stock price since Buffett made his announcement.

Now, the valuation case for investing in Berkshire has become even more compelling. Berkshire's market cap is about $985 billion, while the value of its stock portfolio is $283 billion and it has $344 billion in cash. This indicates that the market is valuing Berkshire's operating businesses at $358 billion. Excluding investment income, Berkshire has generated $31.4 billion in operating earnings over the past four quarters, indicating a low P/E valuation of just 11.4 for its businesses.

Buy for the long term

I own both stocks in my portfolio and have owned then for more than a decade. And I think they look attractive now because of how I feel they could perform over the next decade, not over the coming weeks or months. There's a lot that could cause short-term volatility in both stocks, but I'm confident that investors who buy today and hold for the long term will be glad they did.

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