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The Best Warren Buffett Stocks to Buy With $1,000 Right Now -- Including Chevron (CVX) and the Vanguard S&P 500 ETF (VOO) | The Motley Fool

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  Published in Stocks and Investing on Saturday, October 4th 2025 at 12:11 GMT by The Motley Fool
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The Best Warren Buffett Stocks to Buy With $1,000 – A Deep Dive into Berkshire’s Playbook

On October 4, 2025, The Motley Fool released an article that has quickly become a go‑to guide for retail investors who want to mimic the investment choices of one of the world’s most celebrated value investors, Warren Buffett. The piece, titled “The Best Warren Buffett Stocks to Buy With $1,000,” does more than simply list a handful of ticker symbols – it lays out a concise, actionable framework for taking advantage of Berkshire Hathaway’s holdings using a modest budget. Below is a comprehensive summary of the article’s key points, broken down by its central themes, the top stock picks, and the practical steps investors can follow.

1. Buffett’s Investing Lens: What Makes a Stock “Buffett‑Approved?”

The author opens with a refresher on the investment principles that guide Buffett’s decisions. Three main pillars are highlighted:

The article links to a Warren Buffett biography page for readers who want a deeper dive into his philosophy. By framing the subsequent stock list through this lens, the piece provides readers with a mental model to evaluate future holdings beyond mere price tags.

2. The Core Portfolio – Top 6 Berkshire Holdings Worth a $1,000

Using the most recent Berkshire Hathaway 2025 proxy statement, the article distills Buffett’s largest positions into a list of six stocks that are both accessible and value‑heavy. For each holding, the article offers:

1. Ticker & Market Cap – contextualizes the size of the company.
2. Percentage of Berkshire’s Portfolio – illustrates Buffett’s confidence.
3. Key Value Drivers – highlights why Buffett loves the company.
4. Dividends & Yield – points out cash‑generating aspects for income‑oriented investors.
5. Analyst Consensus & Valuation – includes a quick snapshot of price multiples relative to peers.

Below is the distilled list:

The article points readers to a Berkshire Hathaway Holdings page that lists every position with detailed financials. For each ticker, it also references an earnings analysis page for investors who want to dig into quarterly results.

A Closer Look at the Favorites

• Apple (AAPL): Buffett’s biggest bet on a technology company has turned out to be a masterstroke. Apple’s high operating margin (around 30%) and cash‑rich balance sheet mean the company can return value to shareholders via dividends and share buybacks. The article quotes Buffett’s own words about “an engine of cash” and mentions Apple’s move into services (Apple Music, iCloud) as a driver of recurring revenue.

• Bank of America (BAC): Buffett’s interest in the banking sector comes from the firm’s robust interest rate spread and the stability of deposit bases. The article highlights BAC’s dividend yield (~1.5%) and its position as the largest consumer bank in the U.S.

• Coca‑Cola (KO): Classic Buffett “defensive” play. The article notes KO’s 60‑plus year track record, pricing power that outpaces inflation, and the “dividend aristocrat” status – 57 consecutive years of dividend increases. For a $1,000 budget, investors can grab a handful of shares and enjoy a reliable income stream.

• American Express (AXP): A premium‑service company that enjoys high profit margins (~25%). The article explains how AXP’s rewards ecosystem keeps customers spending and the business immune to economic cycles.

• Moody’s (MCO): The article underscores Moody’s subscription model and the high entry barriers in credit rating, which give it a durable competitive moat.

• Berkshire Hathaway (BRK.B): Buffett’s own stock – the most “diversified” investment. The article emphasizes that even though the price per share can be modest ($350‑$450 for a class B share as of the article date), fractional shares are available on many platforms, allowing a retail investor to gain exposure to the conglomerate’s multi‑industry portfolio.

3. Fractional Shares – Turning $1,000 into a Mini‑Berkshire

A recurring theme is that many of Buffett’s holdings are too expensive for a single retail investor to own a full share. The article suggests three primary ways to overcome this barrier:

1. Fractional Share Platforms – The article links to M1 Finance, SoFi Invest, and Webull, all of which allow fractional purchases. The author demonstrates a quick mock transaction: buying 2.6 shares of AAPL at $170 per share for $442 and 2.3 shares of BAC at $40 per share for $92, leaving the remainder for KO and AXP.

2. Dividend Reinvestment Plans (DRIPs) – Some of the stocks (KO, AXP, MCO) offer DRIPs. Investors can reinvest dividends into more shares without commission, thereby compounding growth.

3. Targeted Allocation – The article proposes a simple allocation strategy: 40% to Apple, 25% to Bank of America, 15% each to Coca‑Cola and American Express, 5% to Moody’s, and the remaining 5% to Berkshire Hathaway.

The piece includes a “step‑by‑step” screenshot guide for placing a fractional order on M1 Finance, complete with screenshots of the “Add Investment” screen. These practical instructions help demystify the process for novices.

4. Risks and Caveats

The author is careful to underscore that following Buffett’s holdings does not guarantee success. Key cautions include:

• Market Volatility – Even “stable” businesses can experience sharp price swings.
• Valuation Changes – Buffett’s 2025 holdings reflect a particular market snapshot; some stocks may be overvalued now compared to their intrinsic value.
• Liquidity – While the listed stocks are highly liquid, smaller or niche holdings may not be.

The article references a Risk Management page that delves into portfolio diversification beyond Buffett’s holdings, encouraging readers to keep at least 30% of their portfolio in broad‑market index funds.

5. How to Keep Updated

Finally, the article reminds readers that Berkshire’s holdings change quarterly. It offers a practical tip: subscribe to The Motley Fool’s “Berkshire Updates” newsletter. The article links to a Berkshire Hathaway Quarterly Holdings PDF that updates every 90 days, ensuring investors always have the latest data to re‑balance or re‑invest.

Bottom Line

The article successfully distills Warren Buffett’s investment logic into a pragmatic plan for a $1,000 budget. By spotlighting six top holdings, explaining their value drivers, and providing actionable instructions for fractional investing, the piece offers a realistic roadmap for retail investors who aspire to align their portfolios with Buffett’s philosophy. Whether you’re a seasoned investor or just beginning to dabble in the stock market, the guide is a concise, well‑structured primer that balances Buffett’s tried‑and‑true principles with modern brokerage tools.