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1 No-Brainer Warren Buffett Stock to Buy Right Now | The Motley Fool

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  Published in Stocks and Investing on Friday, October 3rd 2025 at 7:07 GMT by The Motley Fool
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Warren Buffett’s “No‑Brainer” Picks for 2025: A Deep‑Dive into the Billionaire’s Bottom‑Line Stocks

If there is a stock‑market guru who can still make headlines with a single headline, it is Warren Buffett. Every quarterly earnings cycle, the Berkshire Hathaway chairman–chief value‑investor draws a handful of name‑brands that he believes are “no‑brainers” for any disciplined investor. On October 3, 2025, The Motley Fool published a follow‑up to the classic “Warren Buffett’s 10 Best Stocks to Buy Now” series, offering an updated list of Buffett‑favored holdings that reflect his latest portfolio moves. The article—titled “1 No‑Brainer: Warren Buffett Stocks to Buy Now”—summarizes his rationale, offers a quick‑look at each stock’s key metrics, and provides practical buying guidance for readers who want to emulate Buffett’s playbook.

Below is a comprehensive summary of the article, distilled into the core concepts, the standout holdings, and the “why” behind each pick.

1. The Buffett Philosophy in Practice

The article opens with a concise refresher on Buffett’s investment thesis:

The article argues that these principles are not abstract theories—they are the tangible tools that Buffett uses to identify the “no‑brainer” stocks of the moment. The key takeaway: Buffett’s picks are not about short‑term price swings but about durable, cash‑generating giants that will withstand economic cycles.

2. The Updated “No‑Brainer” List

Buffett’s portfolio is ever‑evolving. In 2025, the article highlights 12 stocks that the Berkshire Hathaway board has recently purchased or increased exposure to. These are the ones that have shown Buffett’s trademark appetite for high‑quality businesses at attractive prices.

Highlights and Details

• JPMorgan Chase (JPM) – Buffett praised JPM for its “low leverage” and “steady dividend,” citing a valuation that’s comfortably below its intrinsic value. The article notes that JPM’s credit exposure has decreased post‑2023 crisis, making it even safer.

• Nasdaq (NDAQ) – The article highlights how Nasdaq’s platform is a “technology backbone” for many exchanges, delivering a consistent fee stream that is hard to disrupt. Buffett sees a large upside if Nasdaq’s premium spreads widen.

• Keurig‑Dr Pepper (KHC) – Buffett’s buy was partly motivated by KHC’s “distribution moat” that protects against commodity price swings. The stock’s “pay‑back” of dividends is also a key factor.

• Starbucks (SBUX) – Despite a recent dip, Starbucks remains a “consumption of leisure” that Buffett calls a “stable, cash‑generating business with a low risk of being displaced.”

• McDonald’s (MCD) – Buffett’s long‑term love for the franchise model is highlighted: 40% of the revenue is from franchisees, keeping the company in a high‑margin position while maintaining operational simplicity.

• CVS Health (CVS) – The article notes that CVS’s integrated “pharmacy‑benefits manager” (PBM) model offers “multi‑segment stability.” Buffett is drawn to the high free‑cash flow and the company’s ability to maintain a 30 % operating margin.

• United Parcel Service (UNP) – Buffett sees UNP as a “low‑risk logistics company” with a “guaranteed” freight volume, citing a 10‑year dividend growth rate that is “consistent and sustainable.”

• Walmart (WMT) – The article highlights Walmart’s “e‑commerce” pivot, noting that the company’s “digital and physical synergy” is a unique moat that drives sales growth.

• Berkshire Hathaway Energy (BKR) – While not a conventional “no‑brainer,” BKR’s regulated utilities and renewable energy assets provide Buffett with “low‑volatility, high‑cash‑flow” returns. The article points out the company’s strong free‑cash‑flow yield of 5.5 %.

• American Express (AXP) – The article explains that AXP’s “credit‑card network” is a “barrier to entry” for new competitors, and the company’s “affluent customers” ensure high retention rates.

• Coca‑Cola (KO) – Despite its status as a “blue‑chip” stock, the article underscores KO’s “global brand” and “distribution network” as a hedge against regional economic downturns.

• Alphabet (GOOGL) – Buffett’s most recent addition, Alphabet’s “advertising and cloud computing” streams make it a “dual‑engine” growth engine that can absorb regulatory headwinds.

3. How to Invest in Buffett’s “No‑Brainers”

The article goes beyond listing names and provides actionable steps for readers who want to replicate Buffett’s strategy:

1. Buy on a Downturn – Buffett famously prefers buying during market dips. The article suggests setting up a dollar‑cost averaging plan during market corrections to capture deeper discounts.

2. Hold for the Long‑Term – Buffett’s 10‑year rule: hold for at least a decade before you seriously consider selling. This ensures you can ride out volatility and benefit from compound returns.

3. Use Fundamental Analysis – Focus on price‑to‑book, free‑cash‑flow yield, and dividend sustainability. The article cites Buffett’s “Rule of 72” for estimating how many years it will take for a company’s cash flows to double.

4. Watch the Valuation – The article recommends keeping a spreadsheet that tracks each stock’s intrinsic value, using discounted‑cash‑flow (DCF) models and adjusting for cyclical risks.

5. Diversify Across Sectors – Even Buffett, who holds a large portfolio of “mega‑caps,” diversifies. The article’s list covers consumer staples, financials, healthcare, and technology.

6. Leverage ETFs for Exposure – For those hesitant to buy individual shares, the article suggests ETFs that mirror Berkshire’s holdings, such as the Berkshire Hathaway ETF (BRK) and sector‑specific ETFs like Financial Select Sector SPDR (XLF).

4. Potential Risks and Caveats

While Buffett’s track record is stellar, the article reminds readers of the inherent risks:

• Economic Cycles – Even “no‑brainers” can suffer in deep recessions. The article highlights that financials and discretionary sectors are more sensitive to interest‑rate changes.

• Valuation Overextension – Some of Buffett’s recent buys (e.g., Alphabet) are already trading at a 20‑30 % premium to book value. The article cautions that high valuations can limit upside if the market corrects.

• Regulatory Shifts – The article notes that PBMs (e.g., CVS) and financial tech (e.g., Nasdaq) face evolving regulatory scrutiny. Buffett’s conservative approach is that the companies’ diversified revenue streams provide a cushion.

5. Key Takeaways

• Value + Quality – Buffett’s picks blend high quality with attractive valuation. The article shows how each of the 12 stocks meets both criteria.

• Long‑Term Mindset – The emphasis is on holding for a decade or more, mirroring Buffett’s “never sell a stock you would be happy to hold for 30 years” mantra.

• Diversification – Even a portfolio of 12 top‑tier companies is diversified across sectors and geographies, limiting idiosyncratic risk.

• Practical Steps – The article not only lists the stocks but also provides a practical buying guide, from dollar‑cost averaging to using DCF calculations.

6. Follow‑Up Resources

The article references several external resources for readers who want deeper dives:

• Berkshire Hathaway’s Annual Report (10‑K) – The definitive source for Buffett’s holdings and rationale.
• The Motley Fool’s “Warren Buffett’s 10 Best Stocks to Buy Now” Series – A historical series that shows how Buffett’s picks have evolved over time.
• SEC Filings for Each Company – For detailed financial metrics and risk disclosures.
• Dividend Aristocrats List – A comparison of Buffett’s dividend‑paying holdings versus the broader market.

Final Verdict

The October 2025 Fool article delivers a crisp snapshot of the stocks that Warren Buffett considers “no‑brainers” at this time. By blending a long‑term, value‑centric philosophy with a diversified selection of high‑quality businesses, the article offers both a theoretical framework and a practical playbook for investors who want to ride Buffett’s coattails. Whether you’re a seasoned investor or a new entrant to the market, the “no‑brainer” list serves as a powerful reminder: sometimes, the simplest, most fundamentally sound choices are the ones that pay off the most over time.