Warren Buffett’s Berkshire Hathaway Bought These Stocks. Should You?

Key Concepts

• 13F Report: A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that discloses the holdings of institutional investment managers with over $100 million in assets under management.
• Economic Moat: A sustainable competitive advantage that allows a company to protect its market share and profitability. Morningstar rates moats as Wide, Narrow, or None.
• Upstream Portfolio: In the energy sector, refers to the exploration and production of crude oil and natural gas.
• Integrated Energy Company: A company involved in all aspects of the energy industry, from exploration and production to refining and distribution.
• Underwriting: The process insurers use to assess risk and determine appropriate premiums.
• Valuation: The process of determining the economic worth of an asset or company.
• Fairly Valued/Overvalued/Undervalued: Assessments of a stock's price relative to its intrinsic value.

Berkshire Hathaway’s Q4 2025 13F Report: Analysis of New Buys

This report details Berkshire Hathaway’s investment activity during the fourth quarter of 2025, marking the final quarter with Warren Buffett as CEO. The analysis focuses on three stocks where Berkshire Hathaway increased its position: Chevron, Chubb, and Domino’s Pizza, providing Morningstar’s perspective on each.

Chevron (CVX) – A Watchlist Candidate

Berkshire Hathaway increased its stake in Chevron during Q4 2025, solidifying its position as a top five holding within the portfolio. Morningstar assigns Chevron a narrow economic moat rating, primarily attributed to the quality of its upstream portfolio. While Chevron is an integrated energy company, the strength lies in its exploration and production capabilities. Morningstar currently values Chevron at $171 per share, indicating that the stock is fairly valued as of the video’s recording. Consequently, Morningstar recommends adding Chevron to a watchlist rather than initiating a buy position.

Chubb (CB) – Overvalued Insurance Play

Berkshire Hathaway also added to its holdings of Chubb, an insurer currently ranking as a top 10 holding and with Berkshire Hathaway being its second largest shareholder. Morningstar recognizes a narrow economic moat for Chubb, acknowledging positive performance driven by favorable conditions in both underwriting and investment activities. However, Morningstar believes that the valuations of insurers generally appear stretched. Specifically, Chubb’s shares are currently valued at $283, which Morningstar considers overvalued.

Domino’s Pizza (DPZ) – A Buy Recommendation

The most significant increase in holdings was in Domino’s Pizza, where Berkshire Hathaway now owns nearly 10% of the company. Morningstar assigns Domino’s a wide economic moat, believing the company, as the world’s largest pizza chain, is well-positioned to gain market share. This is driven by consumer preference for Domino’s value-oriented menu. Morningstar’s valuation for Domino’s Pizza is $436 per share, and, at the time of recording, the stock is considered a buy.

Valuation & Perspective

The differing valuations highlight Morningstar’s analytical approach. While recognizing the strengths of all three companies, the current market price relative to their intrinsic value dictates the recommendation. Chevron is seen as fairly priced for monitoring, Chubb as overvalued, and Domino’s as undervalued and therefore a buying opportunity.

Notable Quote

While no direct quote from Warren Buffett is included, the framing of the report as the “final quarter with Warren Buffett as CEO” implicitly acknowledges his significant influence on Berkshire Hathaway’s investment strategy.

Logical Connections

The report logically progresses by examining each stock Berkshire Hathaway increased its position in, providing a consistent framework of company overview, Morningstar’s moat rating, current valuation, and investment recommendation. This allows for a direct comparison of the three investments.

Conclusion

Berkshire Hathaway’s Q4 2025 13F report reveals strategic investments in diverse sectors. Morningstar’s analysis suggests that Domino’s Pizza currently presents the most compelling buying opportunity, while Chevron is a watchlist candidate, and Chubb appears overvalued. The report underscores the importance of considering both a company’s competitive advantages (economic moat) and its current valuation when making investment decisions.