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2 Warren Buffett Stocks to Buy Hand Over Fist in October | The Motley Fool

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  Published in Stocks and Investing on Thursday, October 2nd 2025 at 6:40 GMT by The Motley Fool
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Two Warren Buffett‑Backed Stocks to Watch in October 2025

Warren Buffett, the Oracle of Omaha, has long been revered for his disciplined, value‑oriented approach to investing. Even after more than a decade of steady performance, the Berkshire Hathaway CEO continues to make headlines whenever he opens his eye on a new target. In a recent article on The Motley Fool (October 2, 2025), Buffett’s “hand‑over‑fist” buying activity is highlighted, and the piece zeroes in on two stocks that the legendary investor is reportedly adding to his already impressive portfolio. Whether you’re a seasoned shareholder or a curious newcomer, this article provides a clear snapshot of why these picks matter, how they fit into Buffett’s broader strategy, and what investors should watch for.

1. Buffett’s Long‑Term Lens

At the heart of Buffett’s decisions is a simple premise: buy high‑quality businesses at a fair price, then hold them for the long haul. In the Fool article, the author stresses that Buffett’s most successful investments—Coca‑Cola, American Express, and Apple—are all firms with durable competitive moats, predictable cash flows, and disciplined management. The writer also points out that Buffett’s recent purchases continue to adhere to this framework, underscoring his unwavering commitment to fundamentals over fads.

The piece cites a 2019 interview in which Buffett explained that he looks for businesses that “produce cash, have great people, and do it in a simple, understandable way.” That statement echoes through the analysis of the two stocks, which, according to the article, embody those core characteristics.

2. Bank of America (BAC) – A Resilient Financial Giant

Why Buffett Loves BAC

• Robust Capital Position: The article notes that Bank of America’s capital adequacy ratios are comfortably above regulatory thresholds, giving the bank a buffer against potential economic shocks.
• Diversified Revenue Streams: With a mix of retail banking, wealth management, and corporate finance, BAC can weather downturns in any one segment.
• Improved Profitability: Recent earnings reports show an uptick in net interest margin and loan growth, aligning with Buffett’s preference for companies that can generate consistent earnings.
• Strategic Dividends: BAC’s track record of dividend growth appeals to Buffett’s own focus on shareholder returns.

Macro‑Context

Buffett’s commentary in the article highlights the broader banking landscape, noting that rising interest rates could bolster net interest margins for U.S. banks in the near term. However, he cautions that regulatory pressures and credit risk in certain segments—especially small‑business lending—could offset some gains. The article concludes that, with careful monitoring, BAC remains a “safe harbor” for long‑term value investors.

3. Berkshire Hathaway Inc. (BRK.A/BRK.B) – Buffett’s Own Stock

Why Buffett is Buying His Own Shares

At first glance, the idea of a CEO buying his own company might seem redundant. Yet the Fool piece explains that Buffett often purchases Berkshire stock to signal confidence and to capitalize on favorable valuations. He has a history of buying his own shares during periods when the market has undervalued the conglomerate’s diverse holdings.

• Internal Value Creation: Berkshire’s insurance subsidiaries generate “float” – unearned premiums that can be invested profitably. Buffett’s purchase is seen as a bet on continued efficient use of that float.
• Market Inefficiencies: The conglomerate’s complex structure often leads to mispricing. Buffett’s buying activity is a way to correct these inefficiencies and reinforce the market’s view of Berkshire as a solid investment.
• Strategic Flexibility: Holding more of his own stock allows Buffett to maintain influence over corporate strategy, especially when Berkshire is contemplating major acquisitions.

Investment Appeal

The article underscores that Berkshire’s multi‑industry footprint—ranging from energy to consumer goods—offers a built‑in diversification that is rare for individual investors. Buffett’s track record of picking winning businesses within the conglomerate translates into a “portfolio of portfolios,” which can reduce risk while preserving upside potential.

4. Risks and Caveats

Even with Buffett’s endorsement, the Fool article cautions readers about a few headwinds:

• Valuation Concerns: While BAC’s price is solid, some analysts argue that the current upside potential is limited compared to other high‑yield banks.
• Regulatory Changes: New Basel III rules or state‑level mandates could impact bank profitability.
• Berkshire’s Management: Although Buffett is a proven leader, his succession plans remain a topic of speculation. A change in leadership could alter Berkshire’s risk profile.

The article also highlights that Buffett’s buying decisions are often “opportunistic” rather than scheduled, meaning investors should not treat his purchases as a guarantee of performance.

5. How to Follow Buffett’s Footsteps

The writer provides practical advice for those looking to emulate Buffett’s moves:

1. Do Your Own Due Diligence: Examine financial statements, cash‑flow generation, and competitive positioning.
2. Keep an Eye on Macro Factors: Interest rates, inflation, and regulatory changes can alter a company’s trajectory.
3. Maintain a Long‑Term Horizon: Buffett’s success is rooted in patience; short‑term volatility should not derail a disciplined approach.
4. Diversify Wisely: Even Buffett’s portfolio is diversified; avoid overconcentration in a single sector or asset class.

The article also links to additional Fool research on each of the two stocks, offering deeper dives into quarterly earnings, dividend policies, and analyst consensus.

6. Bottom Line

The Motley Fool article succinctly captures why Bank of America and Berkshire Hathaway are on Warren Buffett’s radar for October 2025. Both stocks embody the timeless qualities Buffett has prized: strong fundamentals, predictable earnings, and a clear competitive moat. While Buffett’s hand‑over‑fist purchases are a bullish signal, the article reminds investors that market conditions, regulatory shifts, and internal dynamics can still influence outcomes.

For investors who value a methodical, value‑centric strategy, following Buffett’s lead on BAC and BRK.A/BRK.B could be a worthwhile component of a long‑term portfolio. As always, thorough research and a disciplined mindset are key to translating these insights into lasting gains.