Should I buy these Warren Buffett stocks right now?

These two stocks are portfolio pinnacles of legendary investor Warren Buffett. Does this mean I should consider buying them for the long term?

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Warren Buffett at a Berkshire Hathaway AGM

Image source: The Motley Fool

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Berkshire Hathaway CEO Warren Buffett has long been regarded as a legend within the investment community. Bloomberg estimates Buffett’s total wealth at £84.6bn. This has largely been driven through decades of very smart trading. 

Many investors follow Buffett’s tips and trades obsessively, including myself. His value-driven philosophy is clear: “Price is what you pay. Value is what you get”. His investment fund reported just under £0.8bn in net earnings for FY21. It seems this philosophy holds some truth. 

Berkshire Hathaway also disclosed its total holdings on June 30. Two of the top four shares held are Chevron (NYSE: CVX) and Coca Cola (NYSE: KO) — adding up 15% of its portfolio. I think it’s time to look at whether I should buy these stocks too. 


Energy company Chevron currently trades at a share price of $158. The stock dropped 4% last week, having leapt 63% across the last 12 months. Warren Buffett emphasises the need for reliable investing, saying he puts “a heavy weight on certainty”. But can I be certain of Chevron’s long-term prospects? 

The company reported a strong performance in its FY21 report. Net income bounced back from a loss of £0.48bn (all GBP figures at current exchange rates) to a gain of £1.4bn. Also, the stock continued its dividends of roughly 4.5p a share, demonstrating consistent financial strength. 

Yet Chevron’s position in the energy industry makes me uncertain. Governments are increasingly turning away from oil producers. Instead, aiming to use more renewable energy sources and reduce greenhouse gas (GHG) emissions. Management stated intentions to achieve net zero GHG emissions for upstream productions by 2050. 

But I think this transition is too slow compared to other industry players. For example, Powerhouse Energy has already begun development of its fully-renewable energy plants. Because of this, I don’t hold Buffett’s ‘heavy-weight certainty’ in Chevron’s long-term prospects. I won’t be adding the shares to my portfolio right now. 


Coca-Cola’s stock has enjoyed a smoother recent journey. The share price has slowly risen just under 10% in the last year, now sitting at $61 a share. 

Yet Coca-Cola didn’t inspire confidence with its recent Q2 report. Operating margins fell from 29.8% to 20.7% year on year. This led to cash flows from operations declining a total £0.87bn. Management blamed this fall on currency headwinds and increased marketing investment. Also, total assets decreased by £1.03bn. This all led to the share price falling 4% in the last month. 

However, it’s not the share price Buffett focuses on. It’s the value found in the business’s core structure that he underlines. In this case, Coca-Cola would seem to be a no-brainer buy. Huge brand recognition and operations spanning across five continents suggest that the beverage titan could be a safe long-term hold. 

But the company has recently suffered sizeable crashes in margins and total assets. Because of this, I think Coca-Cola may not have such good prospects across the coming years. While Warren Buffett has added shares to his portfolio, I won’t be adding them to mine any time soon.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Hamish Cassidy has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Young Asian man drinking coffee at home and looking at his phone
Dividend Shares

These 3 FTSE 250 stocks offer me the highest dividend yields, but should I buy?

Jon Smith considers FTSE 250 shares with a very high yield, but questions whether the income is going to be…

Read more »

View of Tower Bridge in Autumn
Investing Articles

Is FTSE 100 takeover target DS Smith a great buy?

A mega-merger between FTSE 100 giants DS Smith and Mondi has the City abuzz. But is there any value in…

Read more »

Young Black man sat in front of laptop while wearing headphones
Investing Articles

The WPP share price dips as profits fall. Here’s why it could be a top dividend buy

I'm starting to think the WPP share price undervalues the stock, especially if the long-term dividend outlook comes good.

Read more »

Black father and two young daughters dancing at home
Investing Articles

A £3K investment buys me 632 shares in 2 stocks for a second income!

This Fool explains how a second income is possible through dividend-paying stocks and details two picks that could help her.

Read more »

Investor looking at stock graph on a tablet with their finger hovering over the Buy button
Investing Articles

Here’s what these results tell me about the Lloyds share price

A policy of progressive shareholder returns, including big dividend yields, makes the Lloyds share price look super cheap to me.

Read more »

Couple working from home while daughter watches video on smartphone with headphones on
Investing Articles

Passive income from 9.2% yield stock could cut pressure as costs spike

Passive income is one way to reduce the pressure on families, especially as a new study finds a third of…

Read more »

Rainbow foil balloon of the number two on pink background
Investing Articles

2 FTSE 100 dividend shares I’d buy to build £15k passive income

Building long-term passive income is an important part of my investment strategy. Here’s a couple of Footsie shares that I…

Read more »

Young mixed-race woman jumping for joy in a park with confetti falling around her
Investing Articles

Could this 2p UK penny stock be my biggest investing goldmine?

Picking up an unknown penny stock on the cheap -- if it has booming profits -- can give a huge…

Read more »