2 No-Brainer Warren Buffett Stocks to Buy Right Now

In a market where volatility often overshadows logic, Warren Buffett’s investing acumen remains a beacon of consistency. As of early 2025, two of his top holdings stand out as “no-brainer” buys: BYD Company (BYDDY) and Coca-Cola (KO). Both exemplify Buffett’s philosophy of buying quality businesses at reasonable prices—one positioned for explosive growth in emerging markets, the other a time-tested defensive stalwart.

1. BYD Company (BYDDY): The Electric Vehicle Titan with Global Ambitions

Performance: BYD’s stock surged 47% year-to-date (YTD) in 2025, making it Buffett’s top performer. This follows a decades-long partnership that began in 2008, when Berkshire first invested in the Chinese automaker.

Why Buy Now?
- EV Market Dominance: BYD controls 30% of China’s EV market and is expanding into Europe, the U.S., and Latin America. Its self-driving technology advancements and partnerships with tech giants give it a leg up on rivals like Tesla.
- Buffett’s Confidence: Despite BYD’s valuation, Buffett has maintained his stake, now worth over $15 billion, citing its moat-like advantages in battery tech and supply chain efficiency.
- Valuation Edge: Trading at 30x forward earnings, BYD is undervalued relative to peers like Tesla (TSLA), which trades at 50x+.

This chart would show BYD’s exponential growth, validating Buffett’s long-term vision.

Risks to Consider:
- Chinese Regulatory Shifts: Geopolitical tensions or policy changes in China could disrupt BYD’s growth trajectory.
- Competition: Tesla’s struggles have temporarily favored BYD, but new entrants in EV markets pose a long-term threat.

2. Coca-Cola (KO): The Timeless Beverage Empire

Performance: Coca-Cola shares rose 11% YTD in 2025, a testament to its enduring appeal as a consumer defensive stock.

Why Buy Now?
- Brand Power: Coca-Cola holds over 45% of the global carbonated beverage market, with a portfolio of 200+ brands spanning 200+ countries.
- Dividend Strength: KO has increased its dividend for 61 consecutive years, offering a 3% yield in a low-interest-rate world. Its payout ratio remains sustainable at 60% of earnings.
- Diversification: Non-carbonated drinks (e.g., smartwater, Vitaminwater) now account for 30% of revenue, growing at 15% annually. This shift mitigates reliance on traditional soda sales.

This chart would highlight KO’s consistent dividend hikes, a hallmark of Buffett’s “forever holdings.”

Risks to Consider:
- Health Trends: Declining soda consumption in mature markets could pressure growth, though KO’s shift to healthier beverages addresses this.
- Currency Fluctuations: Over 80% of sales occur outside the U.S., exposing profits to exchange rate volatility.

Why These Two Stocks Are Buffett’s “No-Brainers”

1. BYD: A growth machine in the EV sector, backed by Buffett’s cash reserves ($334 billion) to weather short-term risks. Its valuation and global footprint make it a rare high-growth, low-risk bet.
2. Coca-Cola: A defensive powerhouse with moats in brand equity and distribution. Its dividend and diversification into non-carbonated beverages position it to thrive even in recessions.

Conclusion: A Portfolio for All Seasons

Warren Buffett’s 2025 portfolio balances aggressive growth (BYD) with timeless stability (Coca-Cola). Together, they exemplify his dual strategy of:
- Growth at a Fair Price: BYD’s 47% YTD return (vs. the S&P 500’s 8% decline) underscores its potential.
- Dividend Discipline: Coca-Cola’s 3% yield and 61-year dividend streak provide ballast in volatile markets.

While risks like geopolitical shifts or EV competition exist, both stocks align with Buffett’s ironclad principles:
- Buy businesses you’d own for decades.
- Focus on moats, not hype.
- Let cash work for you.

In a market where uncertainty reigns, these two stocks are as close to “no-brainer” bets as any investor can find.

Data as of March 2025. Past performance does not guarantee future results.