- Buffett sticks with Coca-Cola while adding new names to his portfolio.
- His latest investments show confidence in both technology and U.S. resilience.
- Coca-Cola, VeriSign, Pool Corporation, and Domino's reflect Buffett's timeless and strategic approach.
- Kick off the new year with a portfolio built for volatility - subscribe now during our New Year’s Sale and get up to 50% off on InvestingPro!
Warren Buffett is making some bold moves, even when the market remains volatile and fears about overvaluation linger. As always, he's eyeing opportunities where he sees long-term value, and he’s recently added three companies to his portfolio—each offering something unique at current prices.
Among his favorites, Coca-Cola Co (NYSE:KO) stands as a timeless investment, but he's also placing bets on other stocks he things are fairly valued. Let's take a closer look at why Buffett is sticking with his old favorite while also picking up new opportunities.
1. Coca-Cola (KO): Buffett's Timeless Favorite
Coca-Cola isn’t just a staple in Buffett’s portfolio—it's the foundation. Having started buying shares in 1988, Buffett has never sold a single one.
He saw the opportunity to buy more during the 1987 market crash when Coca-Cola’s shares dropped, and that move has paid off handsomely. Today, his Coca-Cola holdings are valued at $25 billion.
Source: InvestingPro
This iconic brand, with a market cap of $270 billion, continues to perform well, especially with its dividend yield of 3.19%.
Source: InvestingPro
As a “dividend king,” Coca-Cola has raised its dividends for 63 consecutive years, making it an attractive pick for value-focused investors. Analysts expect solid growth moving into 2025, with a 4.2% increase in earnings per share (EPS).
Source: InvestingPro
It has 24 ratings, of which 18 are buy, 6 are hold and none are sell.
The market consensus gives it an average price target of $73.55.
2. VeriSign (VRSN): A Technology Play with Long-Term Potential
Buffett’s interest in technology is evident with his investment in VeriSign (NASDAQ:VRSN). Recently, he increased his stake by nearly $4 million, purchasing shares between $204.61 and $204.94.
With a total of 13.3 million shares, Buffett now owns a 14% stake in VeriSign, valued at approximately $2.7 billion. Despite VeriSign’s stock gaining only 1% in the last year and underperforming the S&P 500, Buffett remains confident in the company’s future potential.
VeriSign’s latest quarterly results showed modest revenue growth of 3.8% to $391 million, with a 13.1% increase in earnings per share (EPS) to $2.07. For 2025, EPS is expected to increase by 7.8%, and earnings are projected to grow by 3.5%.
The company maintains impressive gross profit margins of 87.6% and has a moderate P/E ratio of 23.9x. Citi considers VeriSign one of its top three internet sector stocks for 2025 and has set a price target of $238 for the stock.
Source: InvestingPro
Despite some recent lackluster performance—VeriSign’s stock rose only 1% in the last year—Buffett remains bullish on the company’s potential, particularly given its role in domain registration services for the Internet.
Source: InvestingPro
Analysts at Citi also share Buffett’s optimism, naming VeriSign among their top tech picks for 2025. Looking ahead, earnings per share are expected to grow by 7.8% in 2025, and with a gross profit margin of 87.6%, VeriSign remains a solid bet.
3. Pool Corporation (POOL): Betting on U.S. Resilience
Buffett’s investment in Pool Corporation (NASDAQ:POOL) reflects his belief in the U.S. economy’s resilience.
Pool Corporation distributes swimming pool supplies, equipment, and leisure products, and Buffett has shown confidence in the company’s ability to rebound, recently purchasing more than 400,000 shares.
Source: InvestingPro
With a dividend yield of 1.44%, Pool Corporation has a solid earnings forecast—EPS is expected to grow by 9.2% in 2025, and earnings are anticipated to rise by 3.9%.
Source: InvestingPro
Pool Corporation will report its quarterly accounts on February 13, with an earnings forecast ranging from $11.06 to $11.46 per share. The stock currently holds 13 ratings, with 10 buy recommendations and 3 hold ratings.
Source: InvestingPro
The market consensus gives Pool Corporation an average price target of $382.40.
4. Domino’s Pizza (DPZ): Fast Food with Buffett’s Seal of Approval
Buffett’s love for fast food extends beyond Dairy Queen and Kraft Heinz (NASDAQ:KHC). He’s now investing in Domino’s Pizza (NYSE:DPZ), purchasing 1.28 million shares, representing a 3.7% stake valued at $549 million.
Domino’s is the largest pizza chain in the U.S. and has a strong track record, with shares rising 878% since 2014.
Despite a slight dip in profit in its most recent earnings report, the company continues to strengthen its margins by licensing its brand to franchisees, who pay fees and royalties.
Source: InvestingPro
Domino’s reported revenues of $1.08 billion in its fiscal third quarter, up 5.2% from the previous year. The company’s dividend yield stands at 1.42%.
With 33 ratings, 27 are buy, and 6 are hold. Analysts have set an average price target of $482.16, with some firms like Oppenheimer placing a higher target of $495.
Source: InvestingPro
In summary, Buffett's portfolio remains a blend of his signature value-driven approach and new opportunities in sectors with long-term potential.
His investments in Coca-Cola, VeriSign, Pool Corporation, and Domino’s Pizza reflect confidence in these companies’ ability to perform well even in uncertain times.
Whether sticking with his long-term favorites or adding fresh picks, Buffett's strategy continues to provide valuable insights into how to identify undervalued gems in the market.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.