Shares in nuclear power company Oklo (NYSE: OKLO) rose by a whopping 28% in the week to Friday morning. The move comes in a busy week for the company, whereby events helped encapsulate the investment case for the stock.

What does Oklo do

The company is developing what it describes as "next-generation fast fission power plants," known as Aurora. Its Aurora powerhouse has a few interesting qualities. First, it's based on a fast fission plant (Experimental Breeder Reactor-II) that the U.S. government operated from 1964 to 1994, so the technology is proven. Second, it's designed to operate either connected to the grid or independently of it -- the latter is a significant advantage when reliable power is needed in remote locations. Third, it can run on fresh or recycled nuclear fuel.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

What happened this week

The big news this week came with the announcement, on Wednesday, of a notice of intent to award (NOITA) Oklo a project to provide power to the Eielson Air Force Base in Alaska -- an attractive prospect for the Department of Defense because Aurora can provide power without being connected to the grid. Oklo will provide power under a long-term power purchase agreement (PPA).

One day later, Oklo announced the pricing of a public offering intended to raise $400 million to $460 million.

Oklo's business model is to build, own, and operate its Aurora powerhouse and sell energy via power purchase agreements (PPAs), rather than selling its powerhouse designs. The upside is that it generates long-term recurring revenue; the downside is that it will require significant capital to build the powerhouses, hence the stock offering, and there is the usual risk of cost overruns in building and operating power plants. Still, the market took a positive view on matters this week.

Should you invest $1,000 in Oklo right now?

Before you buy stock in Oklo, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oklo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $888,780!*

Now, it’s worth noting Stock Advisor’s total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Shares in uranium fuel and nuclear energy services company Cameco (NYSE: CCJ) were up 11.7% by 11 a.m. ET today. The move comes as the market digests the news that Westinghouse Electric's adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA) will be higher than previously expected in 2025.

That matters to Cameco investors because their company owns 49% of Westinghouse, with the rest owned by Brookfield Renewable Partners (NYSE: BEP), which also rose sharply today. Cameco expects its share of the increase in adjusted EBITDA expectations to be $170 million. "This expected increase will be taken into consideration in determining the 2025 distribution payable by Westinghouse to Cameco," according to the press release.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

The increase is related to two nuclear reactors at a power plant in Central Europe. The good news doesn't stop there, because Cameco expects Westinghouse to also benefit from providing fuel services to the plant.

A brighter outlook

The $170 million figure is notable for a company that reported approximately $1.1 billion in adjusted EBITDA for 2024.

It's also important because it further confirms the improving momentum behind investment in nuclear energy as a solution to the challenge of obtaining a reliable source of energy while meeting net-zero emissions targets. As Cameco notes, Westinghouse's expected EBITDA growth over the next five years is 6%-10%. Meanwhile, Cameco's core uranium fuel and nuclear power products and services businesses are set to grow sales at a similar rate.

All of this adds up to an exciting growth outlook for an industry that was written off far too easily in the past.

Should you invest $1,000 in Cameco right now?

Before you buy stock in Cameco, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cameco wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners and Cameco. The Motley Fool has a disclosure policy.

Boeing (NYSE: BA) received some positive commentary over a critical issue for its future. At a recent International Air Transport Association (IATA) summit, the president of Emirates airline, Tim Clark, made positive comments on the new widebody 777X, which should reassure investors that Boeing is on the right track under CEO Kelly Ortberg. Here's why.

Emirates airline is a big deal

According to a Reuters article, Clark stated that Emirates had been informed it would receive its first 777X in the second half of 2026 or the first quarter of 2027. In addition, he declared himself "cautiously optimistic" over the turnaround at Boeing and noted progress at the aerospace giant.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

These are just comments. However, they matter, and particularly so when they come from the head of one of the largest international airlines in the world, Emirates. In addition, while Lufthansa is set to receive the first 777X in 2026, Emirates is, by some distance, the largest customer for the 777X at present. The airline has 205 unfilled orders for the 777X, followed by 97 unfilled orders from Qatar Airways, with Singapore Airlines a distant third with 31.

The 777X is also pivotal to Boeing's future. The new widebody is larger and has a more extended range than Boeing's 787 Dreamliner and will service the high-demand long-haul international travel market. Generally, Airbus is considered the leader in the narrowbody market, while Boeing holds the lead in the widebody market. That said, Airbus has surpassed Boeing in the widebody market in recent years, partly due to quality control issues with the 787 and ongoing, costly delays on the Boeing 777X.

Why the 777X matters to investors

Simply put, Boeing needs to keep the 777X on track, not least because airlines are likely to be more hesitant in placing orders when they see continued delivery delays. Furthermore, the delays are extremely costly, in terms of charges, and tying up capital in inventory that won't be utilized until deliveries take place.

The 777X was initially intended to have its first delivery in 2020, and the subsequent delays to that timeline have proved embarrassing and costly for Boeing. In its fourth-quarter 2020 earnings report, Boeing recorded a $6.5 billion pre-tax charge on the program and informed investors that the first 777X delivery would occur in late 2023.

Last October, Boeing announced a $2.6 billion charge, followed by a further $900 million charge in January.

These charges total at least $10 billion. Furthermore, Boeing has inventory tied up in the program, and it's incurring increased research and development costs, with an increase of $525 million in 2023 and $435 million in 2024.

Stemming the flow of these charges and losses would be a significant plus; that's why keeping to the revised 2026 target for first delivery is so important.

It also counts because it discourages airlines from canceling orders and encourages them to place new orders. Suppose Boeing can demonstrate that it can deliver the first 777X in 2026 and effectively ramp up production thereafter. In that case, airlines can begin to build capacity assumptions based on having 777Xs in service at a given time.

What's next for Boeing?

As previously discussed, the three key things investors need to see from Boeing are a satisfactory ramp-up in production on the 737 MAX (to an initial 38 a month), a return to profitability for Boeing Defense, Space & Security (BDS), and keeping the 777X on track.

With Boeing making tangible progress on the 737 MAX (management expects to reach a 38-month rate soon), and BDS returning to profitability in the first quarter, the positive commentary on the 777X suggests Ortberg is achieving Boeing's three biggest aims in 2025.

That's something likely to support the stock price as it moves through the year.

Should you invest $1,000 in Boeing right now?

Before you buy stock in Boeing, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Boeing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

For many investors, buying Tesla (NASDAQ: TSLA) has already set them up for life, but will that be true for anyone newly buying into the stock now? Here's a look at what you need to know before buying the stock.

Understanding the investment thesis for Tesla stock

Tesla is an unusual stock, known to most investors primarily as the leading electric vehicle (EV) company, but that isn't the primary value driver of the stock. Indeed, if you look at Tesla solely as a car company, you would likely avoid the stock. Let's put it this way: Tesla currently trades at a price-to-earnings multiple of 192, compared to single-digit multiples at car companies like Ford Motor Company and General Motors.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

The valuation discrepancy doesn't stem from Tesla's superior profit margins or its leading position in the electric vehicle market. Instead, it comes down to Tesla being able to do something that rival car companies haven't yet done or have abandoned trying to do: launch a robotaxi service. General Motors has already abandoned robotaxi development, and Ford (which had planned to have a robotaxi service in place by 2021) ended its investment (alongside Volkswagen) in robotaxi company Argo AI in 2022. Volkswagen plans to launch its robotaxi service in 2026.

So, if Tesla's valuation isn't justified in terms of being a highly successful electric vehicle company, then how should it be viewed?

The following key points apply, and they make Tesla a highly attractive stock for the speculative end of your portfolio:

• The value in Tesla lies in its robotaxi business; this is not purely a car company stock, or even an electric vehicle stock, and its valuation reflects that.
• The reliance on robotaxi/full self-driving (FSD) makes it a speculative growth stock.
• Tesla's installed base of vehicles gives it significant advantages over Waymo and others.
• Tesla is not your average speculative growth stock; it holds significant advantages over typical growth stocks.

Why robotaxis matter and why Tesla isn't your average growth stock

The robotaxi concept and the FSD that powers it are potentially a huge earnings driver for Tesla. One of Tesla's most vocal and visible supporters, Cathie Wood's Ark Invest, which expected a valuation of $2,600 per share for Tesla in 2029, relies on a model that prescribes 88% of the company's value from robotaxis, compared to just 9% from EVs.

The opportunity to earn recurring revenue from selling unsupervised FSD subscriptions to Tesla owners wanting to use their vehicles as robotaxis is massive, as is the potential to generate recurring revenue on a ride-per-mile basis from robotaxis. Moreover, Tesla plans to mass-produce its dedicated robotaxi vehicle, Cybercab, next year.

A speculative growth stock

That said, the robotaxi launch hasn't even taken place yet (it's scheduled for June 12 in Austin), and it will only be on a small scale initially. As such, Tesla is a speculative growth stock, an observation that suggests Tesla stock should be filed on a long list of highly speculative investments to consider on a rainy day.

Why Tesla deserves a place in a balanced portfolio

However, there are differences -- in fact, many differences -- between Tesla and typical growth stocks. First, speculative growth stocks are usually not established leaders in the core business that underpins their growth. The Model Y is not only the best-selling electric vehicle (EV) in the world, but it's also the best-selling car in the world. In other words, Tesla already has a compelling brand and is the market leader in the growth area of the auto market.

Second, this is not a struggling small-cap stock desperately trying to establish brand recognition and promote its new technology to a sceptical marketplace. Waymo has offered a robotaxi service since 2018, and there is little doubt that consumers want to use robotaxis.

Third, Tesla isn't a growth stock struggling with its finances and seeking a larger partner to invest, which would dilute existing shareholders' claims on future cash flows. A quick look at its most recent balance sheet reveals $37 billion in cash and equivalents, alongside $7.5 billion in debt and finance leases, resulting in a net cash position of $29.5 billion.

Finally, Tesla's position as a cost-effective automaker with the capacity and scale to ramp up production and the vehicles on the road means it can produce robotaxis (whether Cybercab or existing Tesla models) to support growth, and it has a vast bank of data from Tesla vehicles to use to improve its FSD capability.

All told, Tesla is speculative because its robotaxis haven't even been launched yet, there's a lot more certainty around the company than in most growth stocks. That makes it worth buying for the risk-seeking end of a portfolio.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $367,516!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $38,712!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $669,517!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of June 2, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors and Volkswagen Ag. The Motley Fool has a disclosure policy.

The interesting thing about this list is that the two buys, Apple (NASDAQ: AAPL) and Pool Corp. (NASDAQ: POOL), have markedly higher valuations than the sell, Kraft Heinz (NASDAQ: KHC). The rationale behind the investment case for the first two lies in their long-term growth prospects -- something not shared by Kraft Heinz. Here's why.

Kraft Heinz is a challenged business

The consumer staples company generates 44% of its sales from condiments, sauces, dressings, and spreads, with 18% coming from easy-to-prepare meals. None of its other food categories (snacks, desserts, hydration products, coffee, cheese, and meats) contributes more than 10% of its sales.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

It's a fast-changing industry subject to changes in consumer preferences, with substantial competition from retailers with their own branded or private-label products. This increasing competition has pressured Kraft's ability to generate revenue growth or margin expansion over the last decade.

As such, the company's return on capital employed (ROCE) lags that of its peer group. ROCE measures how much profit the company generates from its debt and equity. A consistently low ROCE implies that the company can do little to improve profitability by raising equity or issuing debt.

In short, based on current trends, it's a mature low-growth company facing ROCE challenges with a management hamstrung to initiate substantive changes by paying 61% of expected earnings in dividends.

KHC Return on Capital Employed data by YCharts.

Pool Corp., maintaining swimming pools

Continuing the theme of looking at operational metrics like profit margins, revenue growth, and ROCE, a cursory look at the medium-term trends for Pool Corp., a distributor of swimming pool supplies and equipment, suggests problems similar to those of Kraft Heinz.

That said, context counts for a lot, and investors need to recall that companies like Pool Corp. enjoyed an artificial boom during the pandemic lockdown.

The lockdowns encouraged spending on stay-at-home activities and drove investment in new swimming pools. For example, around 96,000 new pools were built in the U.S. in 2020, jumping to about 120,000 in 2021, and then 98,000 in 2022. By 2024, that figure was down to 60,000, and management expects a similar figure this year.

But no matter the amount, every one of those new pools will help add to the installed base that the company can sell into. Considering that it generates almost two-thirds of its sales from the maintenance and minor repair of swimming pools, this creates a significant long-term growth opportunity once the natural correction from the pandemic boom is over.

POOL Operating Margin (TTM) data by YCharts; TTM = trailing 12 months.

Apple and service growth

Apple is on a growth trajectory, focusing on increasing sales of its high-margin services. Like Pool Corp., investors can think of Apple's various devices -- including iPhones, iPads, Macs, wearables, and myriad other devices -- as an installed base for it to sell services into.

It's a growth opportunity in revenue, margins, and cash flow. As you can see below, strong services growth has increased its share of overall revenue. And given services' higher margin profile (currently above 75% compared to almost 36% for products), it's pulling up Apple's overall profit margin.

That increase in profitability is likely to continue improving as services growth continues at a double-digit pace. In fact, Apple now has over a billion paid subscriptions. This will generate ongoing recurring revenue, which will drop down into improved cash flow generation.

Moreover, if you are wondering, here's what Apple's ROCE looks like.

AAPL Return on Capital Employed data by YCharts

Wall Street analysts expect Apple's free cash flow (FCF) to grow from $109 billion in 2025 to $126 billion in 2026 and $139 billion in 2039, implying double-digit increases. Trading at 27 times estimated FCF in 2025, it is not a conventionally cheap stock, and many investors may want to wait for a better entry point. Still, its long-term prospects remain excellent, and it's likely to grow into its valuation in the coming years.

Stocks to buy and sell

The key point is that Pool Corp. and Apple have a pathway to growth via expansion of the installed base of swimming pools and Apple devices, while Kraft Heinz does not have such prospects. The difference shows up in their operating metrics and long-term growth prospects.

Should you invest $1,000 in Apple right now?

Before you buy stock in Apple, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $826,385!*

Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 12, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Campbell's and Kraft Heinz. The Motley Fool has a disclosure policy.

Shares in Comfort Systems USA (NYSE: FIX) soared by 23.3% in April, according to data provided by S&P Global Market Intelligence. The move comes as the company's first-quarter earnings allayed fears that its growth was set to slow and leave its valuation exposed.

A winner under Biden

Comfort Systems is a mechanical and electrical contractor. Slightly more than three-quarters of its revenue comes from the mechanical side (heating, ventilation, air conditioning, plumbing, piping, controls, etc.) and the rest from electrical (installation and servicing of electrical systems).

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

The following chart explains its booming share price (up an incredible 1,250%). As you can see below, it's been boomtown for U.S. investment in manufacturing and nonresidential construction spending, driven by a combination of a recovery from the pandemic, infrastructure spending, the CHIPS Act, and torrid growth in spending on data centers to support artificial intelligence (AI) application growth.

US Nonresidential Construction Spending data by YCharts

Comfort Systems provides comfort

The fear was that this burgeoning growth would start to slow in 2025. However, the company's first-quarter earnings, released in late April, helped dispel this notion, not least as the company reported a backlog of $6.9 billion at the end of the quarter compared to almost $6 billion at the end of 2024.

Moreover, Comfort continues to see strength in technology spending (including data centers and semiconductor fabrication plants), rising 30% compared to the same period last year -- it now comprises 37% of total revenue.

Discussing its end markets on the earnings call, CFO William George said about data center capital spending, "There is no sign of a letup in demand for electricians, pipe fitters, and plumbers to help build data centers and, frankly, lots of other things."

It's a reassuring commentary, given that there were concerns that the AI/data center investing theme may run into trouble due to a potential slowdown in spending.

A winner under Trump

The company's backlog continues to grow, and Wall Street expects another year of double-digit revenue growth in 2025. Moreover, there's a long-term growth opportunity coming from the potential reshoring of manufacturing to the U.S., either via new construction or expansions to existing facilities. While Comfort is obviously not immune to a possible economic slowdown caused by trade conflict reducing capital spending on facilities, it looks like a likely winner if President Donald Trump succeeds in revitalizing the U.S. industrial base.

Should you invest $1,000 in Comfort Systems Usa right now?

Before you buy stock in Comfort Systems Usa, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Comfort Systems Usa wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $701,781!*

Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 5, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Comfort Systems Usa. The Motley Fool has a disclosure policy.

Shares in medical equipment company GE HealthCare Technologies (NASDAQ: GEHC) declined by 12.9% in April, according to data provided by S&P Global Market Intelligence. The key reason for the decline comes from the "Liberation Day" tariffs announced by President Donald Trump at the start of the month.

GE HealthCare and tariffs

The tariffs and the subsequent response, notably from China, have a significant impact on a company that's a large exporter to the country and uses components sourced from China in its products. Management previously estimated (based on the pre-April tariff announcements) a negative impact of $0.05 in earnings per share (EPS) in 2025 from tariffs. Still, the new tariffs announced in April are expected to have an incremental negative impact of $0.80 in 2025, for a total of $0.85.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Consequently, on its first-quarter earnings call in late April, management lowered its earnings and cash-flow expectations for 2025:

• Full-year organic revenue growth is still expected in the 2%-3% range.
• Adjusted EPS is now expected to be in the $3.90-$4.10 range, compared with prior guidance of $4.61-$4.75.
• Free cash flow is now expected to be at least $1.2 billion compared to prior guidance of at least $1.75 billion.

CEO Peter Arduini discussed tariffs on the earnings call. He said, "We have conservatively assumed that the bilateral U.S. and China tariffs continue, accounting for 75% of our total net tariff impact." As such, the U.S./China trade tariff conflict is the key relationship to watch for GE HealthCare investors.

Growth aspirations

It's a somewhat frustrating situation for investors because the company's investment case rests on the idea that solid underlying but low growth in developed markets would be supplemented by higher growth in end markets like China, where there's a desire to improve healthcare standards.

Management sees China as an attractive long-term market, but tariffs aside, there are near-term headwinds. For example, management lowered guidance last year on lower demand from China, as the hospital capital equipment spending has taken far longer to drop into orders than management expected.

The weakness in 2024 also flows into 2025, with management expecting revenue from China to decline by a mid-single-digit percentage in the first half, followed by a sequential improvement in the second half.

What's next for GE HealthCare?

The U.S./China trade relationship will dominate the outlook for GE HealthCare, but that need not be a negative thing now. With the market having priced in some bad news, some trade deal, or at least de-escalation of the conflict, would be good news. Still, that's not a certainty. GE HealthCare competes in China with European peers Siemens Healthineers and Philips, which might find themselves in a stronger competitive position due to the conflict.

Should you invest $1,000 in GE HealthCare Technologies right now?

Before you buy stock in GE HealthCare Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and GE HealthCare Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $701,781!*

Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 28, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE HealthCare Technologies. The Motley Fool has a disclosure policy.

Stifel analyst Stephen Gangaro recently cut his price target on Tesla (NASDAQ: TSLA) to $450 from $455, maintaining a buy rating on the stock. A price target cut is never great news, but it's not a material reduction, and the target still implies a 73% upside over the next 12 months.

A balanced approach

The reasoning behind a buy rating on Tesla is sound, and the analyst's balanced approach makes sense. Tesla indeed faces near-term headwinds, but it's also true that it has near-term catalysts that could drive a re-rating for its stock.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

To management's credit, it acknowledged that Tesla has near-term issues relating to tariffs and brand image, and deliveries were weaker than expected in the first quarter, partly due to not having enough new Model Ys (the best-selling car in the world in 2024) due to losing a few weeks of production as Tesla shifted production to the new model.

Near- and long-term catalysts

On the other hand, unless you are buying undervalued contact lens stocks, myopia rarely pays off when investing. As the analyst notes, Musk announced he would spend more time on Tesla starting in May. Management confirmed Tesla is on track to release lower-cost models this year, the Cybercab is still on track for mass production in 2026, and the "robotaxi" -- initially a Model Y with fully autonomous full-self driving (FSD) -- will be in Austin in June.

In addition, on the earnings call, CFO Vaibhav Taneja noted that "we were able to sell out legacy Model Y in the U.S., China, and a few other markets within the quarter." That's a major plus and could help margins as Tesla won't need to give incentives to sell legacy models anymore, and it should firm up pricing and demand for the newer model.

These potentially positive near-term events could lead to the market pricing in the long-term benefits (ride share revenue from robotaxis, brand development, increased sales and deliveries due to new models, and recurring revenue from FSD). If we throw in a resolution to the tariff conflict, there's potential for upside for Tesla stock.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $287,877!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $39,678!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $594,046!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of April 28, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

It's not difficult to find stocks likely to go up if the tariff dispute is resolved with a series of trade deals, but what if you want to be a bit defensive and buy some stocks with relatively less exposure to potential tariffs or even some upside exposure? Where better to look for them than among Warren Buffett's Berkshire Hathaway holdings?

Here's why beverage king Coca-Cola (NYSE: KO), building materials maker Louisiana-Pacific (NYSE: LPX), and swimming pool specialist Pool Corp. (NASDAQ: POOL) are worth buying right now to diversify a portfolio.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Why $8,100 in stocks?

Appreciating that $8,100 is an odd figure, it was selected because the average 40-year-old investor has roughly $162,000 in stocks, and a position in one of these stocks of $8,100 would be equivalent to about 5% of the total portfolio. That's a decent amount to buy a little "insurance."

Coca-Cola remains a longtime Buffett holding

The main drawing points of Coca-Cola, the perennial Warren Buffett holding, are its 2.8% dividend yield and relative safety in the current market. As management outlined on an earnings call in February, Coca-Cola tends to produce and sell locally. As such, it's relatively insulated from the impact of cross-border tariffs.

In addition, its exposure to increased packaging costs -- from, say, tariffs on aluminum -- isn't significant, as the metal is only a small part of its cost component. Its core sparkling soft drink business is also relatively immune to an economic slowdown. It all adds up to make Coca-Cola a safe place to park money in the current environment.

Louisiana-Pacific could be a net winner from tariffs

Louisiana-Pacific, which specializes in engineered wood siding and oriented strand board (OSB), has a bit more complicated relationship with tariffs. CEO William Southern argues that OSB is a "traded commodity." In plain English, that means there's no brand loyalty with OSB, and its pricing is heavily influenced by the costs of wood fiber and resin. As such, increases in tariff costs will feed through into higher prices across the industry.

Its engineered wood siding business sources wood fiber from the U.S. and Canada, and it will be affected by any tariffs placed on Canadian wood fiber. Still, Louisiana-Pacific has two engineered wood siding mills in Canada from which it could potentially increase production for the Canadian market.

Meanwhile, it can produce more in the U.S. from its mills there. In addition, if significant tariffs are placed on Canadian wood fiber, it's likely that the price of its engineered wood siding would rise significantly, and the company's ability to source and produce in the U.S. could be a major plus. While President Trump hasn't imposed a new tariff on Canadian softwood yet, plans are in progress , and Louisiana-Pacific could be a net winner.

In the longer-term view, engineered wood siding can grab more market share from alternatives such as vinyl and fiber cement, and at some point, new housing starts -- its key end market -- will surely start to grow again.

Pool is more resilient than you might think

Pool Corp., the wholesale distributor of pool equipment, is a surprisingly resilient business. While new pool construction is down 50% from the pandemic-induced boom in spending on the home, and management expects new pool construction in 2025 to be flat with 2024, almost 65% of its sales go to the more stable market for maintenance and minor repairs.

That helps to support sales in a slowing discretionary spending environment. In addition, note that the 60,000 new pool units expected this year in the U.S. still represent growth in the installed base of pools, which Pool Corp. could potentially sell into.

Turning to the issue of tariffs, back in February, CFO Melanie Hart said that "we do not have a significant amount of direct imports" and "do not anticipate that the currently enacted additional tariffs from China will have a material impact on sales for 2025."

While tariffs on Chinese products are significantly higher than in February, the "vast majority" of Pool's products are still "purchased domestically," she said. What's less clear is the knock-on impact on costs from its suppliers as they suffer increased costs from tariffs. Naturally, Pool will try to pass them on with price increases, but it's not clear how consumers might react.

Still, the company has good long-term growth prospects, largely because of ongoing pool maintenance spending and an eventual recovery in new pool construction growth.

Three Buffett stocks to buy

While all three stocks face some headwinds in 2025, Berkshire Hathaway and Buffett's focus is on the long term, and demand for things like soft drinks, engineered wood siding, and pool products is likely to be a feature of the economy for many years to come.

Should you invest $1,000 in Coca-Cola right now?

Before you buy stock in Coca-Cola, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $652,319!*

Now, it’s worth noting Stock Advisor’s total average return is 859% — a market-crushing outperformance compared to 158% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.

Shares in gas turbine, wind power, and electrification company GE Vernova (NYSE: GEV) rose by as much as 10% in early morning trading, only to settle back into a mid-single-digit gain by noon ET. The move comes after its first-quarter 2025 earnings report demonstrated that plenty of life is left in the economy's electrification trend. Moreover, management reaffirmed its full-year guidance -- a significant plus in an economy threatened by an ongoing tariff dispute.

GE Vernova remains on track

Management's strategy is to take advantage of the strength in demand for gas turbines while growing its higher-margin gas services business in the power segment. The good news is that orders of $6.2 billion in the quarter were 1.4 times its $4.4 billion in revenue, indicating more growth to come. An increase in the installed base of gas turbines helped services revenue grow by 18% in the quarter.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

In its second largest segment, electrification, orders remain strong (at 1.8 times revenue in the quarter) as ongoing investment in electric grids and connecting renewable energy to the grid supports growth.

Finally, in the loss-making wind segment, GE Vernova needs to work through legacy offshore wind contracts while focusing on its profitable onshore wind business. The segment remains loss-making overall, but the earnings before interest, taxes, depreciation, and amortization (EBITDA) profit margin improved to negative 7.9% in the quarter compared to negative 10.6% in the first quarter of 2024.

What's next for GE Vernova?

Management reaffirmed its full-year guidance for $36 billion to $37 billion in revenue and a high-single-digit EBITDA margin. It's a good result in a market stressing the potential for guidance reductions in light of uncertainty around tariffs.

Should you invest $1,000 in Ge Vernova right now?

Before you buy stock in Ge Vernova, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ge Vernova wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

Now, it’s worth noting Stock Advisor’s total average return is 811% — a market-crushing outperformance compared to 153% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Ge Vernova. The Motley Fool has a disclosure policy.

Nvidia partner Vertiv's (NYSE: VRT) stock rose by as much as 21% in early morning trading as the company's first-quarter earnings report confirmed that there's nothing wrong with demand for data center equipment. The stock was up 10.5% around 12:30 p.m. ET. The report contained plenty of positives, and Vertiv continues to offer investors an excellent way to get exposure to AI-led demand for data center capacity.

Vertiv's excellent quarter: Orders

The two major pluses from the earnings report this morning were the hike in full-year sales guidance and the return to impressive yearly order growth. Starting with order growth, investors were disappointed in February when management reported that fourth-quarter orders were flat compared to the same quarter of the previous year. Even though its trailing-12-month orders were up 30% in the fourth quarter, the weak order performance in the quarter raised fears of deterioration in 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Fortunately, those fears were dispelled by the 13% growth in orders in the first quarter compared to the same period of 2024. Moreover, trailing-12-month orders were up 20%, and the book-to-bill ratio (a key indicator of growth) was 1.4 in the quarter.

Vertiv's excellent quarter: Guidance hike

As for the guidance update, management now expects organic net sales growth of 16.5%-19.5% compared to a prior estimate of 15%-17%. That said, the midpoint of earnings and free cash flow (FCF) guidance was kept the same, even as management raised the high end of the earnings and FCF guidance range due to favorable trading conditions but lowered the low end due to uncertainty around tariffs.

Now trading at less than 24 times the midpoint of FCF guidance for 2025, Vertiv remains an attractively priced growth stock, not least as we are still in the early innings of AI application growth.

Should you invest $1,000 in Vertiv right now?

Before you buy stock in Vertiv, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vertiv wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

Now, it’s worth noting Stock Advisor’s total average return is 811% — a market-crushing outperformance compared to 153% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Boeing (NYSE: BA) stock rose by as much as 8.7% in trading before 10 a.m. today. By 12:10 p.m. ET, the stock was up 5.5%. The move comes as investors cheered the company's first-quarter earnings report, which was released earlier. Frankly, the market had reason to be optimistic.

Boeing delivers

The aerospace and defense giant is one of the most fascinating stocks. Yes, it has plenty of near-term headwinds and exposure to risk around tariffs and the economy's overall direction. On the other hand, its well-regarded CEO, Kelly Ortberg, has a huge opportunity to engineer a turnaround at the company simply by executing well.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

As such, Boeing is almost a "self-help" story, and the good news from this earnings report is that the company seems to be starting to help itself. Boeing and Ortberg need to improve the delivery rate on their commercial airplanes, notably the narrow-body 737 MAX, and the profit margin at the Boeing Defense, Space & Security (BDS) business, notably on its troublesome fixed-price development programs.

First, management confirmed that the 737 and the wide-body 787 programs were on track. It expects to reach a monthly delivery rate of 38 and seven, respectively, by the end of the year. That confirms what Boeing supplier Hexcel's CEO, Tom Gentile, said recently, "Boeing is doing very well on their production. They're getting up in rate."

Second, the following chart speaks for itself. BDS generated a 2.5% operating profit margin in the quarter, and management plans to return to high single-digit margins over time.

Where next for Boeing

The company still faces risks, not least from tariff conflicts. Still, Boeing's demonstration of operational progress in the first quarter is a significant plus and gives confidence that Ortberg will turn the company around.

Should you invest $1,000 in Boeing right now?

Before you buy stock in Boeing, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Boeing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

Now, it’s worth noting Stock Advisor’s total average return is 811% — a market-crushing outperformance compared to 153% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Hexcel. The Motley Fool has a disclosure policy.

Without a doubt, Tesla (NASDAQ: TSLA) is one of the most intriguing stocks on the market. The polemical views on the company portray it as either a damaged brand with an aging lineup of vehicles on the cusp of being exposed as a hugely overvalued car company -- or a technology company about to explode by unveiling its primary value creator, robotaxis, in due course. Here's the lowdown.

Getting to a million dollars

First up, some simple math to illustrate how Tesla might make you a millionaire. For the sake of argument, let's assume that Ark Invest's "expected value" price target of $2,600 for Tesla stock in 2029 comes true. Then you would have to hold 385 Tesla shares to have $1 million worth of stock. Buying those shares at the time of this writing would cost you just shy of $105,000.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

Based on just the significant initial outlay required, Tesla stock is unlikely the best candidate for most individual retail investors to become eventual millionaires. Having said that, the stock still has the potential to generate hefty returns.

Valuing Tesla

I reference Ark's valuation model because it highlights how investors perceive the stock differently. For bulls like Ark, the case for Tesla rests on its robotaxi offerings, which it attributes as being worth 88% of total company value, compared to just 9% for its electric vehicles.

That consideration goes a long way toward explaining why Tesla trades at nosebleed valuations compared with the more traditional automakers. Although Tesla is a highly successful EV company, the case for its stock lies in long-term revenue generation from profit sharing on miles driven on robotaxis, and the market knows it.

Let's put it this way: Under the Ark model, roughly $2,288 per share comes from robotaxis, and just $234 to Tesla as an EV company.

TSLA EV to Free Cash Flow data by YCharts.

What you need to believe for the bullish case

Consequently, investors need to accept the following:

• Tesla will release its robotaxi service (possibly featuring its Cybercab) in due course. CEO Elon Musk maintains it will launch "unsupervised full self-driving as a paid service in Austin in June."
• Tesla's purpose-built robotaxi, Cybercab, will begin volume production soon. Management maintains volume production will start in 2026.
• Adoption will be rapid, regulatory hurdles will be overcome, and safety concerns will be reassured.
• Tesla will be able to produce a low-cost Cybercab that can generate significantly lower cost per ride than alternatives like Waymo and traditional cab services.

Why Tesla can hit these goals

The good news is investors have reason to be positive. First, while relatively high interest rates have negatively impacted automakers' EV plans, Tesla carried on investing and reduced its cost per vehicle to below $35,000 at the end of 2024 from above $38,000 at the start of 2023. That matters because EVs need to be affordable to encourage adoption, the Cybercab needs to be affordable, and management claims it will launch a new "more affordable" model in the first half of 2025.

Purely by way of contrast, consider that Ford (a company that told investors in 2016 that it would produce driverless cars by 2021) lost $5.1 billion on its EV segment in 2024.

Second, Tesla needs and has leadership in EVs. That's important for robotaxis because it means Tesla has a huge and continuously growing set of data from its Autopilot and Full-Service Driving (FSD) technology on Tesla cars in continuous use. That should enable it to lower the cost per ride and improve its unsupervised FSD solutions.

Third, while its declining sales in 2025 have attracted much media attention, the reality is that Tesla had more than 44% market share of EV sales in the U.S. in the fourth quarter of 2024. The company has the brand recognition and familiarity to succeed with robotaxis.

Why Tesla stock is risky

Unfortunately, while there are many positives, there are many question marks.

Most of the value in the stock is in a technology that's not in service yet. Tesla has a record of overpromising and underdelivering on unsupervised FSD and robotaxis/Cybercab. Will the Austin launch happen? Will the Cybercab be part of it, and will Cybercab be in volume production in 2026? Will the "more affordable" model be launched imminently? Will the tariff skirmish with China turn into a war and negatively impact Tesla's cost base, not least because it buys batteries and other components from China?

Is Tesla a millionaire-maker stock?

The upside is significant, but so are the risks, making Tesla a stock only for enterprising and speculative investors or those looking to take a relatively small position in a stock with substantive upside potential.

It won't suit most investors, and Tesla needs many things to go right before it realizes the potential in Robotaxis/Cybercab. It's not a millionaire maker because few retail investors will be willing to invest the sums necessary to get there, at least on Ark's model. Still, it might suit enterprising investors with a diversified portfolio of stocks who can tolerate risk.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $287,670!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $37,568!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $495,226!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of April 10, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors and Stellantis. The Motley Fool has a disclosure policy.

Shares in data center equipment company Vertiv (NYSE: VRT) rose by 14% in the week ending Friday morning. This is an excellent performance, but the stock is still down more than 40% this year. This week's positive move helps to shed light on the key driver of the stock at the moment -- sentiment over the trade tariff skirmish and what it's likely to do to spending on data centers.

Vertiv and tariffs

It's no secret that companies usually cut back on capital spending in a slowdown. This is particularly true when growth spending (rather than maintenance capital spending) has driven data center investment over the last couple of years. This leaves Vertiv exposed to the market's views on the current round of trade disputes between the U.S. and its trading partners.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

The rise this week came as news broke of a 90-day pause in tariffs above 10%, with the exception of China, whose tariff now stands at 145%. The pause, plus some conciliatory commentary indicating a willingness to do trade deals, indicates to the market that the tariffs might be more tactical than strategic in nature.

In other words, President Donald Trump may be tactically using them as a precursor to trade deals, resulting in more favorable conditions for U.S. exporters. This is distinct from more lasting strategic tariffs designed to fundamentally reshape the structure of economies. In truth, the answer probably lies somewhere in the middle.

What it all means for Vertiv

If they turn out to be tactical and trade deals are signed in due course, then the dip in the Vertiv share price will prove an excellent buying opportunity as conditions should normalize, with ongoing spending on artificial intelligence (AI) applications driving data center investment. Time will tell.

Should you invest $1,000 in Vertiv right now?

Before you buy stock in Vertiv, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vertiv wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,779!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $659,306!*

Now, it’s worth noting Stock Advisor’s total average return is 787% — a market-crushing outperformance compared to 152% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

In times of uncertainty, investors turn to areas of relative certainty, and one such area is Warren Buffett's mastery of investing when others are fearful. Consequently, it makes sense to look into what Buffett is holding in his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) investment portfolio. Here are two stocks worth looking at now.

Berkshire Hathaway stock

Buffett was widely reported to be building up a large cash pile in 2024, and he has expressed some skepticism about tariffs. If you want to gain market exposure at such a challenging time, why not buy into Berkshire Hathaway stock and let Buffett carry the strain while you wait for more certainty on the fallout from the tariff escalations?

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

After all, it's a strategy that would have worked out for investors over the past year, as well as more extended time frames.

BRK.A data by YCharts

For example, over the last 10 years.

BRK.A data by YCharts

Or even over the last 30 years.

BRK.A data by YCharts

While Buffett won't live forever, his successor, Greg Abel, has been at Berkshire Hathaway for 25 years, and it's a safe assumption that he's played a pivotal role in key investment decisions made by the company.

One of those decisions is Berkshire Hathaway's stockpiling of more than $330 billion in cash at the end of 2024 -- a decision that appears incredibly prescient now. The secret to Buffett's investing success isn't just being an outstanding stock picker; it's also knowing when to be a stock picker, and the stockpiling of cash in 2024 wasn't luck.

Try Coca-Cola

According to its SEC filings, Berkshire Hathaway held 400 million shares in Coca-Cola (NYSE: KO) at the end of 2024. It's one of Berkshire's largest positions, and its 9% increase in 2025 contributed to Berkshire's similar increase over the same period. Its nearly 3% dividend yield doesn't harm the investment case for the stock either.

Naturally, investors will be concerned about Coca-Cola's exposure to tariffs and trade wars, but fortunately, the company is relatively well-positioned. Its end products are more consumer staples than consumer discretionary products. Moreover, as CEO James Quincey outlined on the fourth-quarter earnings call in February, there are several reasons to believe Coca-Cola will be in good shape.

First, Quincey noted: "We are predominantly a local business when it comes to making each of the beverages. The vast majority of everything that's consumed in the U.S. is made in the U.S." He added, "While it's a global business, it's very local." This localization of production, where consumption takes place, means the company isn't suffering from tariffs in the way that, say, a company manufacturing in Mexico and exporting into the local market in the U.S. will.

Second, while Coca-Cola does have exposure to increased packaging costs associated with aluminum tariffs, Quincey told investors in February that packaging is just "a small component" of its cost structure. The increase in aluminum cost would not be "insignificant," but according to Quincey, it's manageable. In addition, the increase in aluminum costs is also likely to impact its competitors, and Coca-Cola has the scale to absorb cost increases by taking other measures.

Third, demonstrating the last point above, Quincey argued that Coca-Cola could shift marketing and distribution focus toward polyethylene terephthalate (PET) bottles instead of aluminum. This isn't something all its competitors will be able to do.

Stocks to buy

All told, Berkshire Hathaway and Coca-Cola, one of its largest holdings, look like pretty good stocks to buy in the current environment. They both have Buffett's seal of approval, which counts for a lot in uncertain times.

Should you invest $1,000 in Coca-Cola right now?

Before you buy stock in Coca-Cola, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,779!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $659,306!*

Now, it’s worth noting Stock Advisor’s total average return is 787% — a market-crushing outperformance compared to 152% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.