Warren Buffett’s Berkshire Hathaway BRK.A BRK.B just released its 13F for the third quarter of 2025.
Key Insights From Berkshire Hathaway’s Q3 2025 13F
- Berkshire initiated a new $4 billion dollar position in Alphabet GOOGL last quarter, making the stock the 10th-largest holding.
- Buffett continued to scale back in Apple AAPL and Bank of America BAC.
- Berkshire eliminated its position in D.R. Horton DHI.
- In dollar terms, Buffett and his team sold more stocks than they purchased during the third quarter.
Here’s a list of all the stocks that the team bought and sold according to the new 13F, along with three of Berkshire Hathaway’s holdings that look attractive to Morningstar’s analysts today.
Which Stocks Did Berkshire Hathaway Sell?
Berkshire continued to peel back its stakes in top-three holdings Apple and Bank of America last quarter. “Berkshire has been selling Apple since the start of September 2023 and Bank of America since the beginning of July 2024,” observes Morningstar senior analyst Gregg Warren. Despite the haircut, Apple remains Berkshire’s largest holding, for now—but maybe not for much longer: Number-two holding American Express AXP is nipping at Apple’s heels, thanks to its stellar 22% return this year and Berkshire’s disinterest in selling any shares of what Buffett has called one of its “forever” stocks.
Buffett continued to trim Berkshire’s positions in a few other stocks last quarter as well and sold the firm’s entire stake in D.R. Horton.
Which Stocks Did Berkshire Hathaway Buy?
Just this past week in a Thanksgiving letter to shareholders, Buffett wrote, “Because of Berkshire’s size and because of market levels, ideas are few—but not zero.”
Was he hinting that Berkshire had made a big stock purchase?
Berkshire’s new $4 billion investment in Alphabet may surprise some, both for its size and for what may seem like a tech bet from someone who has typically eschewed the sector. (Buffett considers Apple to be more of a consumer company than a tech one.) Alphabet may certainly have been purchased for the portfolio by a team member not named Buffett. But the company does tick a few boxes when it comes to qualities that Berkshire looks for in its companies.
For starters, Alphabet possesses a wide economic moat. In fact, Morningstar thinks Alphabet’s moat stems from four separate moat sources (intangible assets, network effect, cost advantage, and consumer switching costs). It’s rare for a company, even one with a wide moat, to have that many sources of moat. “On average, wide moat companies only have two moat sources,” says Morningstar US Chief Market Strategist Dave Sekera. Alphabet’s multiple durable competitive advantages should provide a stronger and more resilient defense against competitors, sustained profitability, and continued market dominance.
Plus, Buffett has never shied away from a fundamentally sound company clouded in controversy—as long as he can buy shares of the company at a sizable margin of safety. Here, too, Alphabet fits the bill. Bears argue that lingering antitrust cases could eventually reduce Google’s search dominance. “We don’t see a material deterioration in Google’s search business resulting from governmental or judicial intervention,” says Morningstar analyst Malik Ahmed Khan. We think the stock’s price today is compensating for the risk: In fact, Alphabet stock looks 18% undervalued as of this writing.
How to Invest Like Warren Buffett
3 Warren Buffett Stocks to Buy
Many of the stocks in Berkshire Hathaway’s portfolio look fairly valued or overvalued according to Morningstar’s analysts today. Here are three Buffett stocks that look undervalued as of Nov. 14:
- Constellation Brands STZ
- Moody’s MCO
- UnitedHealth Group UNH
Here’s a little bit about each of the Warren Buffett stocks to buy.
Constellation Brands
- Morningstar Rating: 5 stars
- Morningstar Economic Moat Rating: Wide
- Morningstar Capital Allocation Rating: Standard
- Industry: Beverages – Brewers
Berkshire first picked up shares of Constellation Brands in the fourth quarter of 2024. The stock has slumped as consumers have pulled back on alcoholic beverage spending; Constellation Brands is down 39% during the past 12 months. With its portfolio of top-selling Mexican beer brands, including Corona and Modelo, we think the company has carved out a wide economic moat. While we’re cautious about Constellation Brands’ near-term outlook, we expect new products (including citrus-flavored and nonalcoholic beers) to resonate with health-conscious consumers. At its current price, Constellation Brands is a buy.
Read Morningstar’s full report on Constellation Brands.
Moody’s
- Morningstar Rating: 4 stars
- Morningstar Economic Moat Rating: Wide
- Morningstar Capital Allocation Rating: Exemplary
- Industry: Financial Data & Stock Exchanges
Moody’s has been a longtime holding at Berkshire Hathaway (it’s also among the portfolio’s 10 largest positions), and the stock is currently trading at a rare 11% discount to Morningstar’s $550 fair value estimate. Moody’s is up just 4% this year because of concerns around issuance volumes, explains Morningstar analyst Rajiv Bhatia. But we think those concerns are overstated and that the company’s wide economic moat based on the intangible assets and network effects of its ratings business remains intact. At today’s price, Moody’s qualifies as a high-quality Warren Buffett stock to buy.
Read Morningstar’s full report on Moody’s.
UnitedHealth Group
- Morningstar Rating: 4 stars
- Morningstar Economic Moat Rating: Narrow
- Morningstar Capital Allocation Rating: Standard
- Industry: Healthcare Plans
Berkshire’s pickup of UnitedHealth Group during the second quarter of 2025 was a good example of Buffett being Buffett: buying when others are fearful. UnitedHealth’s stock plummeted 40% during the quarter thanks to rising medical costs, weak earnings, and an investigation into the company’s billing practices. Berkshire’s purchase was also notable given the size of the investment—$2 billion. UnitedHealth’s stock is up 23% during the past three months, yet still looks 22% undervalued relative to Morningstar’s $427 fair value estimate.
Read Morningstar’s full report on UnitedHealth Group.
When Is Warren Buffett Retiring From Berkshire Hathaway?
Buffett will hand over the CEO reins to Greg Abel at the end of this year, ceding day-to-day management of Berkshire Hathaway. Buffett will, however, remain Berkshire’s chairman.
In his Thanksgiving letter, Buffett said he’ll no longer be writing Berkshire’s annual shareholder letter nor holding court at the annual meeting—though the Buffett faithful may see more annual Thanksgiving letters in the future. Buffett also used this new letter as an opportunity to remind shareholders that he thinks they’re in great hands with Abel. “I can’t think of a CEO, a management consultant, an academic, a member of government—you name it—that I would select over Greg to handle your savings and mine,” wrote Buffett.
Although Buffett recently converted some of his A shares of Berkshire Hathaway to B shares and gave those B shares to four family foundations, he made clear in his letter that the move was a part of his philanthropic plan and not a vote of no-confidence in his successor.
Read Buffett’s New Letter
