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3 No-Brainer Warren Buffett Stocks to Buy Right Now -- Including Sirius XM Holdings and the Vanguard S&P 500 ETF

3 No-Brainer Warren Buffett Stocks to Buy Right Now -- Including Sirius XM Holdings and the Vanguard S&P 500 ETF

Author:
foolstock
Published:
2025-09-22 00:32:00
20
3

Warren Buffett's investment wisdom cuts through market noise—here are three picks that bypass analysis paralysis.

The Oracle's Crystal Ball

Sirius XM Holdings delivers subscription revenue streams that would make even Buffett smile. The satellite radio giant's recurring model mirrors his love for predictable cash flows.

Vanguard's Market Dominance Play

The Vanguard S&P 500 ETF wraps the entire U.S. market in one trade—Buffett's own recommended strategy for most investors. It's the ultimate set-it-and-forget-it move.

The Third Contender

This stealth pick embodies Buffett's 'buy wonderful businesses at fair prices' mantra. Its competitive moat could withstand a herd of charging bulls.

While traditional finance still debates stock picks, crypto natives know automated yield farming already solved this—but for those playing the legacy game, these three stocks offer Buffett-grade simplicity. Sometimes the smartest moves are the obvious ones.

Warren Buffett is shown in close-up.

Image source: The Motley Fool.

1. Sirius XM Holding

(SIRI 0.52%) is an audio entertainment provider, and a big one, delivering its offerings largely via satellite. With its SiriusXM and Pandora platforms, it boasts around 160 million listeners each month. Buffett loves dividends, and Sirius pays them -- recently with a dividend yield of 4.6%.

One reason the dividend yield is rich is because the stock has pulled back in recent years -- by an annual average of nearly 24% over the past three years. (It's up 5.7% year to date as of mid-September, though.) What's the problem? Well, revenue and membership growth have slowed, and it has most recently posted a net loss instead of a gain -- though the loss was smaller than expected.

Still, Buffett and/or his lieutenants see a lot to like in Sirius, and they've bought up lots of shares -- recently owning nearly 37% of the company! Read up on the pros and cons of Sirius to see if it looks like a good fit for you. Know that its valuation looks promising, with a forward-looking price-to-earnings (P/E) ratio of 7.6, well below its five-year average of 13.1.

2. Constellation Brands

(STZ -0.05%) is another Berkshire holding, with Berkshire recently owning 7.4% of the company -- after adding more than 1 million shares in the last quarter.

Constellation makes and sells alcoholic beverages, mainly in the U.S., Mexico, New Zealand, and Italy. Its brands include some familiar names, such as Corona, Modelo, Robert Mondavi, High West, and Casa Noble. Constellation is another dividend payer, with a recent 3% yield. But add in its significant recent share buybacks, and the company rate of rewarding shareholders is closer to 8%.

The stock is down sharply this year, by around 45% recently, so clearly it's facing some troubles -- such as a decline in alcohol consumption in the U.S. and many customers tightening their belts in the face of tariffs and inflation. The company is aiming to turn its fortunes around by focusing on its higher-end brands and cutting costs.

The stock does appear undervalued at recent levels. Its forward P/E ratio of 11.5, for example, is well below the five-year average of 18.3. If you think the company can recover, this could be a great time to buy.

3. Vanguard S&P 500 ETF

The(VOO 0.55%) is a Warren Buffett investment because he has recommended it for most investors -- and even for his wife, as he has directed that much of the money he leaves her be invested in it.

The exchange-traded fund (ETF) -- which trades like a stock -- contains the same (or about the same) holdings as the. It's designed to deliver roughly the same returns, less its minuscule annual fee of 0.03%, which will cost you $3 per $10,000 per year. Such an S&P 500 index fund spans some 500 companies, offering a lot of diversification.

Here are this ETF's top holdings -- and they'll be the same for just about any other S&P 500 index fund:

Stock

Percent of ETF

Nvidia

8.07%

Microsoft

7.38%

Apple

5.77%

Amazon

4.12%

Meta Platforms

3.12%

Broadcom

2.57%

Alphabet Class A

2.08%

Alphabet Class C

1.68%

Berkshire Hathaway Class B

1.61%

Tesla

1.61%

Data source: Morningstar.com. As of July 31, 2025.

Lookee there -- the fund even includes shares of Berkshire Hathaway, and a lot of them, at that. It also includes all of the "Magnificent Seven": Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Facebook parent Meta Platforms, and Tesla.

Give any or all of these three Warren Buffett stocks some consideration for your long-term portfolio. Read up on them first, though, to see how much confidence they inspire -- and whether they seem like slam-dunk investments to you.

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