Tariffs on, tariffs off. Stock market down, stock market up. What in the world should investors do amid so much volatility?
One good answer is to emulate Warren Buffett. The legendary investor has remained as calm as ever, unruffled by the market's wild gyrations. If you're looking for stocks to buy, Buffett's portfolio contains several great choices, too. Here are three no-brainer Buffett stocks to buy right now.
Berkshire Hathaway (BRK.A -0.57%) (BRK.B -1.19%) is arguably the best Buffett stock to buy with so much uncertainty. That's not just because it's run by Buffett, either.
Diversification offers one of the smartest ways to minimize risk with an investment. Few companies are more diversified than Berkshire Hathaway. The conglomerate owns more than 60 subsidiaries. These businesses include energy companies, food makers, homebuilders, insurers, manufacturers, railroads, restaurants, and retailers.
Berkshire's investments provide significant diversification as well. Buffett's company owns stakes in over 40 other publicly traded businesses representing the communications services, consumer goods, energy, financial services, healthcare, industrial, and technology sectors.
Perhaps the most important reason why Berkshire Hathaway stock has delivered solid gains this year while the overall market tanked, though, is its massive cash position of $334 billion. This cash gives Buffett and his team plenty of dry powder to put to work if stock valuations remain depressed or fall further.
Amazon (AMZN -5.35%) hasn't held up nearly as well as Berkshire Hathaway has during the market meltdown. Shares of the e-commerce and cloud services giant were down nearly 30% at one point. But every time in the past Amazon stock has fallen significantly, it presented a great buying opportunity for long-term investors. I don't think this time is different.
Granted, Amazon would feel some pain if the economy stumbles. A decline in consumer spending would almost certainly cause the company's revenue to take a hit. Businesses could also pull back on artificial intelligence (AI) investments if a recession comes, which could hurt Amazon Web Services (AWS).
However, Amazon's long-term prospects remain bright. AI isn't going away. The shift to the cloud should provide a tailwind for AWS that extends well into the next decade and probably beyond. I think the trend could even accelerate if significant AI technological advances are achieved.
Meanwhile, Amazon continues to expand into new markets. It's now an advertising powerhouse thanks in part to the popularity of Prime Video. The company has moved into healthcare by launching an online pharmacy and acquiring healthcare provider One Medical. Look for Amazon to keep pushing the envelope in the future.
How long will the economic and stock market uncertainty persist? No one knows. That's why I view Kroger (KR 3.21%) as another no-brainer Buffett stock to buy right now.
It's not surprising in the least that Kroger's share price has risen this year while the major market indexes fell. Investors know that the grocery business is resilient. And they know that Kroger is one of the strongest players in the industry. Regardless of what happens, Americans will need to buy groceries. Many of them will shop at one of Kroger's 2,700 or so stores nationwide.
Kroger might even be a bigger winner for investors if the Trump administration's tariffs lead to negative economic repercussions. This scenario would likely spur many investors to shift money to safe haven stocks more than they have so far in 2025.
However, this doesn't mean Kroger won't perform well if the economy hums along and the overall stock market soars. As a case in point, the stock jumped almost 34% during the 2024, which in retrospect looks like a relatively tranquil period.
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