3 Stocks Warren Buffett Is Buying With His Fist in His Hand.

Warren Buffett is one of the richest men in the world. He has amassed his fortune by investing in elite companies with strong competitive advantages and attractive long-term growth prospects.

If you, like many people, think Warren Buffett is right about stocks, then you can invest with Warren Buffett by buying shares of some of his favorite companies. Buffett regularly updates the list of stocks that his companies buy and sell.

Let's take a closer look.Berkshire Hathaway firms( Berkshire Hathaway The New York Stock Exchange (NYSE) stock code: BRK.A) (New York Stock Exchange: BRK).B) three of the largest stocks. Today, these three stocks are still excellent buys.

1. Apple Inc.

Warren Buffett (through Berkshire) holdsApple Inc.((NASDAQ resonance stock code: AAPL)The company has a large stake in the company. Berkshire owns about $160 billion worth of the tech giant's stock, representing more than 40% of its $372 billion public equity portfolio.

Buffett admires Apple's trusted brand, loyal customer base, and unrivaled profitability. He also praised the iPhone maker's net income of more than $100 billion a year, which allows it to buy back its own stock, thereby increasing earnings per share by reducing the number of shares outstanding. In this way, Apple's hundreds of billions of dollars in stock repurchases help increase the value of Berkshire's and other shareholders' holdings. If you buy today, you could become one of those shareholders.

In addition, Buffett recognizes the value of the more than 2.2 billion Apple devices in use around the world. This large base of active users provides Apple with significant opportunities to sell new devices and services. As a result, products such as the company's new Apple Vision Pro augmented reality headset have been able to garner stronger initial demand and developer support.

In fact, the tech giant's services division has thrived as a highly profitable business unit with a market capitalization of nearly $100 billion. And it should continue to grow at a rapid pace, especially if Apple is on track to launch new artificial intelligence (AI) features in the coming months.

2. Coca-Cola

Warren Buffett holdsCoca-Cola (NYSE: KO)shares for much longer than it has held Apple shares (1988 vs. 2016). The beverage giant accounts for approximately 6% of Berkshire's $372 billion portfolio, with current holdings valued at $23 billion.

Coca-Cola has responded to changing consumer preferences. As more shoppers sought healthier alternatives, the soda king expanded its product lineup to include healthier foods such as cow's bees, vitamin-enhanced waters, juices and teas. Fairlife, Bodyarmor, Minute Maid and Gold Peak are now among Coca-Cola's successful brands.

The beverage giant's advertising expertise and vast distribution network allow it to quickly expand new brands after discovering a best-seller. Coca-Cola's innovation drives a quarter of gross profit growth in 2023.

The Company's cost-cutting efforts also contributed to profit growth. Asset sales, such as management's decision to sell a large portion of Coca-Cola's lower-margin bottling facilities, contributed to its earnings per share growth of 13% in 2023.

These profit gains enabled the dividend stalwart to increase its annual cash payout to investors for the 62nd consecutive year in February of this year. Currently, Coca-Cola's stock yield is holding steady at 3.3%.

3. Occidental Petroleum

Occidental Petroleumfirms(NYSE: OXY)is one of Warren Buffett's biggest bets of late. Since 2022, Berkshire has been actively buying shares of the oil and gas producer. The investment giant owns 28% in Occidental Petroleum, valued at about $17 billion, and more than $8 billion in preferred stock and warrants that give it the right to increase its stake in the energy company.

Back in 2019, Berkshire helped finance Occidental Petroleum's acquisition of Anadarko Petroleum. The deal boosted Occidental's assets in the Permian Basin and other oil and gas-rich regions. The combined company's U.S. operations now provide customers with reliable energy at a time when Middle Eastern and European surges are disrupting international markets.

Buffett is also interested in the energy producer's leadership position in the potential trillion-dollar market for carbon management services. Vicki Hollub, Occidental's chief executive officer, believes Occidental's talent for enhanced oil recovery, which uses carbon dioxide to release more oil from mature fields, will give it an edge in the booming industry of carbon capture, utilization and storage (CCUS).

Horuben intends to provide the technology that will enable its partners to build up to 1,000 carbon capture plants around the world. Processes that remove carbon dioxide from the air can play an important role in combating climate change.Everson MobilThe market for carbon capture solutions is expected to reach a staggering 4% by 2050.Trillions of dollarsThe company's main goal is to make more money from carbon services than it currently does from oil and gas. Holub argues that Occidental will eventually make more money from carbon management services than it currently does from oil and gas.

Should you invest $1,000 in Occidental now?

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Joe Tenebruso does not own any of the stocks mentioned above. the Motley Fool owns shares of recommended Apple Inc. and resonance Hathaway Inc. the Motley Fool recommends Occidental Petroleum Corporation. the Motley Fool has a disclosure policy.

3 Stocks Warren Buffett Is Buying With His Hands was originally published by The Motley Fool.