3 Warren Buffett Stocks He Just Bought! Why Did He Choose These?

Value investors often follow the moves of Warren Buffett and his company Berkshire Hathaway. Even as Buffett gradually hands over leadership to Greg Abel, his influence and investment legacy endure. When Berkshire invests in something, it usually signals confidence in a stable business and the industry as a whole.

In the 4th quarter of 2025, the company made several interesting changes to its portfolio. While Berkshire was selling off shares of tech giant Apple and Bank of America, it was massively increasing its capital elsewhere. The money flowed primarily into companies with stable cash flows.

1. Domino’s Pizza (DPZ): Global Franchise Model and Predictable Income

Berkshire Hathaway significantly increased its stake in the Domino’s Pizza chain in the 4th quarter. The number of shares held rose from the original less than 3 million to 3.35 million units. The investment firm clearly appreciates the resilient cash flow of this pizzeria and its global franchise model.

The company Domino’s fits perfectly into Buffett's value and dividend investment style. It operates more than twenty thousand branches worldwide and generates stable income from licensing fees. Additionally, it offers a solid dividend yield of just under 2%.

Shares of this company have lagged behind the broader market over the past year, dropping by about 6%. Performance was negatively impacted by slowing revenue growth and rising costs for franchisees. Analysts cite weakening consumer spending and sharp competition as the main obstacles. Nevertheless, the company achieved impressive results in the 4th quarter of 2025, with revenue growing year-over-year by more than 6% to $1.54 billion.

Growth Catalysts and Innovation

The company's management is actively innovating and focusing on expanding digital ordering. Berkshire is likely betting that these innovations, along with a loyal customer base, will lead to significant growth. Among the main catalysts for the company are:

• Expansion of the loyalty program
• New attractive menu items
• Disciplined control of operating costs

You can buy Domino’s shares following Warren Buffett's example due to the decent price at which they are currently trading, or for the purpose of portfolio diversification, which can certainly be useful now given the higher geopolitical tensions.

2. Chevron Corporation (CVX): Oil Giant with a Great Dividend

Chevron remains a key energy choice for Warren Buffett. Berkshire increased its stake to more than 130 million shares in the fourth quarter. This move reflects a strong belief in the cash flows of this oil giant and its generous dividend policy.

Chevron's integrated business model and its relatively low debt exactly meet Buffett's strict criteria. The stock currently offers a very attractive dividend yield approaching 4%. This makes it an enticing choice for all investors seeking stable and regular income.

Market Performance and Valuation

During the past year, Chevron even outperformed the S&P 500 index with its growth. While the index gained about 12%, Chevron's dividend shares grew by an excellent 17% over the same period. Results were driven primarily by the successful acquisition of Hess Corporation.

The company boasts strong free cash flow and excellent returns. In 2025 alone, Chevron returned a record $27 billion to its shareholders through dividends and buybacks. The firm also has a number of very interesting projects in development, including:

• Acquisition of new mining blocks near Greece
• Significant expansion of exploration in Libya
• Planned doubling of production in Venezuela

If you are attracted by a higher dividend yield that ensures stable passive income and exposure to an oil giant, Chevron remains a formidable candidate.

3. Chubb Limited (CB): A Business in Berkshire Hathaway's Own Field

Chubb Limited is a massive global insurance giant in which Buffett has held a significant position for some time. In the last quarter, Berkshire increased its stake further to a total of 8.5%. Insurance is traditionally one of the legendary investor's favorite sectors.

Conservative underwriting of risks and consistently high profits make Chubb a classic Buffett choice. The company pays a reliable dividend and regularly returns a huge portion of cash to its shareholders through share buybacks. This indicates excellent financial discipline by the entire management team.

Record Financial Results

In Q4 2025, the insurer reported absolutely record financial results. Net income rose year-over-year by a quarter to a staggering $3.2 billion. A fundamental role in this jump was played by growth in premiums written and globally disciplined risk management across all corporate segments.

"Chubb's shares significantly outperformed the US market in the past year, posting growth of 23%."

In addition to flawless financial results, Chubb is very actively expanding its global market presence. The basic pillars of global expansion for this insurer include:

• Entry into Asian developing markets
• Successes in specialized health sectors
• Profitable digital partnerships in South America (such as the recent partnership with Nubank)

Wall Street analysts remain mostly optimistic about the insurer's future. The fact that Berkshire Hathaway itself is investing in this company clearly underscores its undeniable qualities, especially given its low volatility (Beta of 0.16) and reasonable valuation (P/E around 12x).