3 Buffett-Type Stocks That Aren't in Berkshire's Portfolio

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These stocks all have solid brands and an imposing moat — hallmarks of a Warren Buffett investment.

Warren Buffett doesn’t own every stock he likes or that would fit with his investing strategy. There are simply too many stocks out there.

Many investors, however, will still mimic the moves his company Berkshire Hathaway makes and buy the stocks Buffett buys. The problem is that if you’re copying those moves, a stock’s value might have changed drastically by then, which will affect your return.

Instead, what investors might want to do is focus on stocks that aren’t in Berkshire’s portfolio but that have the same attractive features many Buffett-type stocks possess, such as strong fundamentals, brand power, and predictable earnings growth. And by taking this approach, you can find some excellent stocks to buy and hold, building up your own portfolio of Buffett-type investments.

Three stocks that could be great options for his fans to buy and hold for the long term right now are Microsoft (MSFT -1.44%), Costco Wholesale (COST 0.68%), and Nike (NKE -0.81%).


Warren Buffett owns Apple, and it wouldn’t be unreasonable to expect that he would also own shares of Microsoft. Berkshire’s portfolio occasionally contains rival companies, including both Visa and Mastercard. After all, why bother trying to pick a winner between two fantastic stocks when you can just own both of them?

The reason he doesn’t own Microsoft stock, however, goes back to his friendship with the company’s co-founder, Bill Gates. He simply doesn’t want to give even the appearance of any bias or insider information. “There’d be a lot of people who wouldn’t believe us if something good immediately happened after we bought it,” Buffett said.

But there’s nothing to stop regular investors from buying up one of the leaders in tech and artificial intelligence (AI). With its investments in ChatGPT creator OpenAI and the rollout of Copilot, there’s some exciting growth for Microsoft in the near future. It also wrapped up its acquisition of Activision Blizzard last year, which gives it more potential to expand its gaming business.

The only thing I don’t love about the stock is its hefty valuation: more than 40 times its trailing earnings. But as long as you’re willing to hang on to the stock for years, it can still be an excellent investment because its growing and diverse business makes it likely that its earnings will continue to soar.

Costco Wholesale

Buffett’s right-hand man, the late Charlie Munger, was a big fan of Costco Wholesale. With a solid brand and consumers coming to its stores in droves for both day-to-day essentials and discretionary purchases (including gold bars), it’s not hard to see why the company has flourished.

While many retailers are struggling, Costco is coming off yet another strong quarter where its same-store growth was an impressive 6.6% for the period ended May 12. That sustainable increase is why I think it’s the best retail stock you can own.

Even amid inflation, consumers are still able to justify paying for their memberships, often finding value in big bulk purchases. And that’s the power of the brand and the moat that Costco possesses, which makes it an ideal Buffett-type of investment.

Like Microsoft, this isn’t a cheap stock — it trades at a price-to-earnings multiple of more than 50. But Costco can be a forever-type investment that you can just buy and forget about.


Nike is another example of a company with a terrific brand. Although its sales haven’t been strong of late, its name resonates with younger shoppers, and that can make it a strong stock in the long run.

In its most recent annual survey, Piper Sandler found that Nike remains the top clothing and footwear brand among teenagers in the U.S.

Teens might not have a lot of spending money right now, but as they get older and their purchasing power increases, that will change. In the meantime, if they are growing up with Nike’s brand, that can build up that customer loyalty, which is why this type of survey data can be a valuable predictor of growth opportunities for Nike.

Investors might be concerned that in its most recent quarter, which ended on May 31, sales dropped by 2% to $12.6 billion, but that could prove to be a temporary problem for the business.

With a strong brand, particularly with teens, Nike can be a solid investment to buy and hold. And at less than 20 times earnings, it’s the cheapest stock on this list.

David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Costco Wholesale, Mastercard, Microsoft, Nike, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard, long January 2025 $47.50 calls on Nike, long January 2026 $395 calls on Microsoft, short January 2025 $380 calls on Mastercard, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.