Warren Buffett stocks for your IRA in 2025

New York: So, have you heard about the latest buzz around Warren Buffett’s stock picks? As the year wraps up, six of his favorite blue-chip stocks are on sale. It’s mainly due to some economic shifts and market trends.

These stocks could be a great fit, especially if you’re a lower-risk investor. Even if you usually stick to low-cost mutual funds, adding a few individual stocks might give your portfolio a nice boost over time.

Take Occidental Petroleum, for example. Its stock has dropped significantly, going from $171 last April to around $120 now. This decline is tied to the oil market’s struggles and worries about the Chinese economy. But Buffett isn’t backing down; his company, Berkshire Hathaway, has been buying more shares. They already own a hefty 28% of Occidental, worth about $12.7 billion.

Now, Occidental might not seem like a steal at first glance, trading at 15 times the expected earnings for the next year. But investing in it is really a bet on oil prices bouncing back and on Buffett’s track record.

Then there are those Japanese conglomerates—Mitsubishi, Sumitomo, Mitsui, Marubeni, and Itochi. They’re not just trading houses; they’re diversified companies involved in everything from mining to healthcare. They’ve also seen their stock prices dip, making them look appealing right now.

Buffett has compared these companies to Berkshire itself, saying he sees them as long-term investments. Their stocks are trading at reasonable prices, and some even offer decent dividend yields.

In short, it might be worth considering these stocks while keeping most of your investments in safer funds. They could be more interesting than Buffett’s own Berkshire Hathaway, which has grown so large that it’s finding it tough to keep up with the market.

Of course, investing in individual stocks always carries risks. But when you compare them to the current hype around U.S. growth stocks, it’s a tough call. Those growth stocks have been soaring, but they’re also pricier than ever.

So, what do you think? Is it riskier to bet on those popular growth stocks or to trust Buffett’s stock-picking skills? The choice is yours!