3 Warren Buffett Stocks Investors Should Be Buying for Safety Right Now

Warren Buffett is undoubtedly one of the greatest investors of all time. Part of the widespread positive view of Buffett has to do with the Oracle of Omaha’s investment philosophy, which has stood the test of time.

Buffett’s view that investors should be fearful when others are greedy (and greedy when others are fearful) is one that is timeless, and espouses the sorts of prudent investing strategies those with long-term time horizons can really benefit from. Buffett may not believe in diversification (to the same degree as other experts in his field), but he does believe that selling into euphoria and buying panic are strategies that can result in tremendous wealth for investors who are willing to be patient.

Investing can (and probably should) be a boring game. But with volatility spiking as a result of uncertainty around various fiscal policies and how they’ll play out, those looking to follow in Mr. Buffett’s footsteps and stay mostly invested may be looking for relative safe havens right now.

Here are three companies I think fit the profile of safe haven picks for investors in such a group. These are all current holdings of Warren Buffett himself, so that says a lot about their value as long-term portfolio holdings. 

Berkshire Hathaway (BRK-B)

Obviously, this list wouldn’t be complete without discussing Berkshire Hathaway (NYSE:BRK-B). Indeed, if there’s any company that may be viewed by Buffett has a harbinger of safety, I’d hope it would be his very own firm. 

Berskhire’s portfolio consists of a combination of both wholly-owned subsidiaries and publicly-traded stocks. On the privately-held subsidiary front, the company has built a portfolio of rock-solid businesses, many of which have been around for decades (or more than a century), and likely to continue on for many more decades to come. These cash flow producing giants span a range of sectors, from energy to transportation, insurance, and other economically-sensitive areas of the economy.

Buffett’s long-term bet has been on America and its outsized growth potential. This bet has been one that has clearly paid off, with Berkshire joining the exclusive $1 trillion market capitalization club as a result. 

Indeed, one of Berkshire’s greatest strengths is its diversified portfolio of publicly-traded stocks as well, spanning insurance (GEICO), consumer goods (Coca-Cola), finance (American Express), and the technology (Apple) sectors. This broad exposure reduces risk while ensuring steady earnings, even in economic downturns. Additionally, Buffett’s focus on companies with strong economic moats and undervalued assets ensures that Berkshire’s investments maintain long-term profitability.

With over $334 billion in cash reserves, Berkshire is well-positioned to capitalize on market corrections and make strategic acquisitions. The availability of Class B shares also makes the stock accessible to retail investors. This is a top defensive stock I think investors can sleep well at night owning here. 

Occidental Petroleum (OXY)

Occidental Petroleum (NYSE:OXY) currently sits as the sixth-largest portfolio holding in Berkshire’s portfolio of publicly-held stocks. That’s a notable position, considering the size of Berskhire’s investments, and the weighting other longer-term holdings have within Buffett’s portfolio.

Buffett’s increased interest in the oil & gas business is notable, considering the shift we’ve seen even during the Biden administration toward a more favorable regulatory environment for this sector. Energy independence is an increasingly important aim of the U.S. government, with inflationary pressures forcing the government to think about how to manage prices via keeping production high and encouraging additional production.

On this front, Occidental posted record U.S. oil production in 2024, driven by strong performance in major basins. The company also bolstered its Midland Basin presence with the CrownRock acquisition and improved its balance sheet by repaying $4.5 billion in debt ahead of schedule.

Buffett openly admires Occidental Petroleum, particularly CEO Vicki Hollub’s expertise in oil extraction and carbon capture technology. In his 2024 shareholder letter, he highlighted Occidental’s vast U.S. oil reserves and leadership in carbon-capture initiatives. Buffett praised Hollub’s ability to extract oil efficiently and acknowledged the company’s role in advancing U.S. energy independence.

For those looking for a stock with Buffett’s clear blessing, his ownership stake of 28.2% in Occidental really does speak for itself. This is a top Berkshire holding I think long-term investors can own here, and potentially add to if prices dip in the coming quarters.

Coca-Cola (KO)

Despite declining soda consumption and some other headwinds facing Coca-Cola (NYSE:KO), this long-time Warren Buffett holding has continued to provide solid returns to investors in recent decades. Buffett’s initial purchase of Coca-Cola in 1988 has paid off multiple times over, with the company’s dominant position in the world of carbonated beverages (and forays into other verticals) leading to incredible growth over the long-term.

What attracted Warren Buffett to Coca-Cola is what attracts most investors to the company. This is a global conglomerate with one of the most respected and well-known brands anywhere in the world. A truly diversified business from a geographical perspective, Coca-Cola has ridden the rise of cola consumption around the world (and its pricing power) to ever higher-highs.

And with a dividend yield of nearly 3%, this is a company that can provide decent returns in years that are sideways, with the company’s strong cash flow growth likely to lead to a steady multiple over the long-term. 

Coca-Cola forecasts 5% to 6% organic sales growth in 2025, with comparable EPS rising 2% to 3%, or 8% to 10% on a currency-neutral basis. Short-term earnings face pressure from a strong U.S. dollar, and adjusted free cash flow is expected to dip 12% due to tax payments and working capital changes. If the dollar weakens and EPS grows at a 5% CAGR, shares could reach $90.48 by 2030, a 27% increase from current levels.

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