Investment Opportunities: Top Picks from Warren Buffett's Portfolio for Immediate Purchase
Warren Buffett, the renowned investor, has recently demonstrated his commitment to three diverse companies: Mastercard, Chevron, and BYD Electric. Each investment reflects Buffett's traditional value-oriented and long-term approach, as evidenced by recent data.
Mastercard, a global leader in digital payments, has been a profitable venture for Buffett's Berkshire Hathaway. The company is focusing on increasing merchant engagement, enhancing customer experiences, and expanding its digital and cybersecurity capabilities. Mastercard's Value-Added Services, which include data analytics, fraud protection, and risk management, make up almost 40% of its revenue. In 2024, Mastercard generated $28 billion in revenue, a 12% increase from the previous year, and earned nearly $15.6 billion in operating income and almost $13 billion in net income.
Buffett's investment in Mastercard aligns with his preference for businesses with durable competitive advantages and consistent cash generation. Mastercard's strong cash flow supports buybacks, dividends, and acquisitions, strengthening its competitive moat. The company's EPS is forecasted to grow 9.5% in 2025 and 16.6% in 2026, with revenue growth of 13.1% and 11.9% respectively.
Chevron, one of the largest oil and gas-producing companies in the world, is another notable addition to Buffett's portfolio. Although specific recent details about Chevron within Berkshire’s portfolio are less highlighted, the overall investment climate for energy companies like Chevron has been positive due to strong earnings growth linked to higher fuel volumes and asset dispositions. Chevron's focus on cash flow and stable earnings fits Buffett's investment criteria for cash-generative, shareholder-friendly companies.
Chevron has recently announced its intention to acquire a 5% stake in Hess and its prized oil-rich Stabroek Block in Guyana. The acquisition, however, has been delayed due to ongoing arbitration. Chevron expects to generate additional free cash flow worth $9 billion between 2024 and 2026 at a Brent Crude Oil price of $60 per barrel.
Buffett's investment in BYD Electric, a Chinese electric vehicle and battery maker, likely reflects his growing interest in companies with strong market positions in sectors with long-term growth potential, such as electric vehicles and clean energy. BYD dominates the new energy vehicles (NEV) market in China, cornering 28.9% of the market in the first five months of 2025. The company uses AI extensively across its EV and battery businesses, including autonomous driving, a cloud-based platform, and a smart car system.
Buffett owns shares in Mastercard (MA) and Chevron (CVX). Chevron has increased its dividend for the past 38 consecutive years, and Mastercard's commercial payments accounted for nearly 13% of its gross dollar volume in 2024. In 2024, Mastercard's gross dollar volume was $9.8 trillion, a 11% increase from the previous year.
In conclusion, Buffett continues to back Mastercard’s innovative payment ecosystem and reliable cash generation, values Chevron’s strong earnings in energy, and likely holds BYD as a strategic growth play in electric vehicles without recent major changes in strategy disclosed. His investments remain characterized by a patient, valuation-disciplined approach with a focus on companies with durable competitive advantages and strong cash flows.
[1] Berkshire Hathaway Investment in Mastercard (2021) [2] Berkshire Hathaway Investment in Chevron (2021) [3] Berkshire Hathaway Investment in BYD Electric (2021)
- Warren Buffett's investment in Mastercard demonstrates his interest in companies with strong digital capabilities, such as data analytics, fraud protection, and risk management, which generate a significant portion of their revenue.
- Buffett's investment in Chevron shows his preference for companies with a focus on cash flow and stable earnings, especially those in the energy sector that generate strong earnings growth through higher fuel volumes and asset dispositions.
- Buffett's investment in BYD Electric suggests his interest in companies with strong market positions in sectors with long-term growth potential, like electric vehicles and clean energy, which also incorporate artificial intelligence in their operations.
- Apart from investing in Mastercard (MA) and Chevron (CVX), Buffett likely holds shares in BYD Electric, a Chinese electric vehicle and battery maker, which is expected to benefit from its leadership in the new energy vehicles market in China.
