As Warren Buffett’s legendary stint as the CEO of Berkshire Hathaway (BRK.A) (BRK.B) concluded with the end of 2025, an era drew to a close. The one who made value investing cool, the Oracle of Omaha, developed a cult-like following across the investing world over his six decades at the helm of the erstwhile textile company. It is now a diversified conglomerate spanning industries as varied as tech, retail, finance, and utilities. Notably, this timely and varied set of investments led Buffett, ably supported by Charlie Munger, to deliver a CAGR of 20% over 60 years, double that of the S&P 500’s ($SPX) CAGR of 10% in the same period.
However, as investors continue to draw inspiration and guidance from the legend’s countless pearls of wisdom over the decades, Buffett’s stamp on Berkshire’s investments remains. To that end, here are three top picks from his list of investments that investors can consider for 2026. Surprisingly, considering his aversion to tech stocks for the longest time, two of the three names belong to that sector (and no, it’s not Apple), while the other one is a Buffett classic.
Founded in 1994 and helmed by another iconic CEO in Jeff Bezos for a long time, Amazon (AMZN) has been a multinational technology company best known for pioneering e-commerce. It has become one of the world’s largest digital ecosystems, spanning retail, cloud, digital services, and AI. Over the last 10 years, Amazon’s revenue and earnings have displayed CAGRs of 21.26% and 72.49%, respectively.
Valued at a market cap of 42.4 trillion, the AMZN stock is up 6% on a year-to-date (YTD) basis.
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Notably, Amazon’s third-quarter 2025 results reflected continued momentum, with net sales reaching $180.2 billion, which marks a 13% increase over the year-ago period. Earnings per share advanced 36.4% to $1.95, comfortably exceeding the $1.57 consensus forecast. This performance extends Amazon’s streak of beating analyst estimates to more than two years running.
Operating cash generation stayed robust. Cash from operations rose 36.8% year-over-year (YoY) to $35.53 billion, and the company ended the quarter holding $66.9 billion in cash and equivalents, with zero short-term debt outstanding.
Overall, analysts have attributed a consensus rating of “Strong Buy” for the stock with a mean target price of $295.05. This indicates an upside potential of about 20% from current levels. Out of 57 analysts covering the stock, 49 have a “Strong Buy” rating, five have a “Moderate Buy” rating, and three have a “Hold” rating.
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The market was taken by surprise when Buffett made a hefty investment of $4.3 billion in the search-to-cloud-to-cloud-to-now chips tech major Alphabet (GOOGL) (GOOG), making the company’s stock one of Berkshire’s top 10 investments. Perhaps this is also an indication of the flavor of investments that Berkshire will be making under the leadership of new CEO Greg Abel.
Founded in 1998, Alphabet is one of the world’s largest and most influential technology conglomerates, best known as the parent company of the search giant, Google. Alphabet primarily operates through two segments, namely, Google Services (Search, Advertising Platforms, Consumer Products, YouTube) and Google Cloud, with bets on other industries such as autonomous vehicles also there.
The company’s stock has been on a roll over the past year, rallying by 65%, as its market cap stands at a mammoth $3.8 trillion currently. Meanwhile, over the past 10 years, the company has grown its revenue and earnings at CAGRs of 18.31% and 23.43%, respectively.
For its latest results in the third quarter of 2025, Alphabet reported total revenue of $102.3 billion, marking a 16% rise from the same period a year earlier. Google Services revenue came in at $87.1 billion, up 14%, while the Cloud segment grew 34% to $15.2 billion. Earnings per share jumped 35.4% to $2.87, beating the $2.26 consensus estimate by a healthy margin.
Search advertising, still the largest contributor, brought in $56.6 billion—a 14.5% increase YoY.
Cash generation was particularly strong. Operating cash flow climbed to $48.4 billion from $30.7 billion in the prior-year quarter, and the company ended September with $23.1 billion in cash and equivalents and no short-term debt on the books.
Thus, analysts have earmarked a consensus rating of “Strong Buy” for GOOGL stock, with a mean target price of $330.55. This indicates an upside potential of about 2.7% from current levels. Out of 55 analysts covering the stock, 44 have a “Strong Buy” rating, four have a “Moderate Buy” rating, and seven have a “Hold” rating.
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And finally, can any list of favorite Buffett stocks end without the mention of Coca-Cola (KO)? Making his investment in the company in the late 80s for about a billion dollars, its value has grown to roughly $27 billion now.
Founded in 1892, Coca-Cola is an iconic American multinational beverage corporation best known for its flagship brands in carbonated soft drinks and non-alcoholic beverages, such as Coca-Cola, Fanta, and Sprite, along with juices, waters, teas, coffees, and energy drinks, which it manufactures, distributes, and sells worldwide.
Valued at a market cap of $297.3 billion, the KO stock has underperformed the S&P 500 over the past year, with an uptick of just 9.5% compared to the index’s rise of 17%. However, with a dividend yield of 2.95%, not only is it above the sector median, but Coca-Cola is a “Dividend King,” having increased dividends consecutively for the past 63 years. To put that in context, it is longer than Buffett’s tenure as CEO of Berkshire.
The results for the latest quarter saw the company reporting a beat on both revenue and earnings. Net revenues for Q3 2025 came in at $12.46 billion, up 5% from the previous year. Meanwhile, earnings grew by 6.5% in the same period to $0.82 per share, coming in higher than the consensus estimate of $0.78 per share. Notably, this marked the ninth consecutive quarter of earnings beat from the company.
Net cash from operations for the first nine months of 2025 also moved higher to $3.65 billion from $2.85 billion in the year-ago period. Overall, the company closed the quarter with a cash balance of $12.73 billion, much higher than its short-term debt levels of $1.92 billion.
Considering this, analysts have deemed the KO stock a consensus “Strong Buy,” with a mean target price of $80.79, which indicates an upside potential of about 20% from current levels. Out of 25 analysts covering the stock, 20 have a “Strong Buy” rating, two have a “Moderate Buy” rating, and three have a “Hold” rating.
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On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
