Legendary investor Warren Buffett is set to retire as CEO of Berkshire Hathaway at the end of 2025. Despite his impending departure, Buffett has invested in solid businesses with competitive advantages and strong capital-return programs for the new year. Berkshire Hathaway’s stock has outperformed the S&P 500 by a significant margin under Buffett’s leadership.
One of Buffett’s top picks for 2026 is Alphabet, with Berkshire purchasing nearly 18 million shares in the company. Alphabet’s dominant position in online search and YouTube, along with its cloud infrastructure services, make it an attractive investment. The company’s strong ad-pricing power and AI integration contribute to its growth potential.
Another favorite stock of Buffett’s is Sirius XM Holdings, a legal monopoly in satellite radio. With a stable revenue mix and attractive dividend yield, Sirius XM’s subscription-based model and minimal reliance on advertising revenue make it appealing to long-term investors. Buffett has steadily increased Berkshire’s stake in the company.
Domino’s Pizza is a consistent performer in Buffett’s portfolio, with the company’s focus on customer trust and growth initiatives driving its success. Incorporating AI and technology in its operations, Domino’s capital-return program includes share buybacks and dividend increases, reflecting its commitment to shareholders.
UnitedHealth Group is another key investment for Buffett in 2026, despite challenges like higher-than-expected costs. The company’s strong health insurance operations and healthcare services subsidiary, Optum, provide growth opportunities. UnitedHealth’s ability to adapt to cost issues and leverage its market position makes it an attractive long-term investment.
Pool Corp rounds out Buffett’s top stocks for 2026, capitalizing on its cyclical ties to economic expansions and recurring revenue streams. The company’s strong cash flow stability and capital-return program, focused on dividends and share buybacks, align with Buffett’s investment philosophy. Buffett’s strategic stock picks reflect his long-term value-focused approach, positioning Berkshire for continued success.
Read more at Nasdaq: 5 Unstoppable Stocks the Soon-to-Be-Retiring Warren Buffett Is Betting Big On for 2026