Berkshire Hathaway Annual Meeting 2025: Key Takeaways & Undervalued Stocks for Value Investing

The Berkshire Hathaway Annual Meeting 2025, held May 3 in Omaha, Nebraska, was a landmark event, drawing thousands for Warren Buffett’s wisdom on value investing, stock picking, and finding undervalued stocks. Known as the “Woodstock for Capitalists,” the meeting stunned attendees with Buffett’s exit plan and offered cues for value investors. Alert Invest dives into the key takeaways, analyzes undervalued stocks backed by top funds, and addresses investor questions post-meeting. Coverage is available at CNBC.

Key Takeaways from Buffett’s 2025 Meeting

At 94, the “Oracle of Omaha” tackled succession, cash reserves, tariffs, and more in a 4.5-hour Q&A. Here are the pivotal moments for value investing and stock picking:

• CEO Transition: Buffett announced he’ll step down as CEO by year-end, naming Greg Abel successor, prompting a standing ovation and surprising shareholders.
• Record $347.7B Cash Pile: Berkshire’s cash hit $347.7B in Q1 2025, up from $325.2B, with no buybacks or major deals, reflecting caution in finding undervalued stocks.
• Tariff Warnings: Buffett criticized Trump’s tariffs, warning they could disrupt retail, railroads, and global trade, impacting value stocks.
• Earnings Decline: Q1 operating earnings fell 14% to $9.64B, hit by insurance losses; Geico’s $2.2B profit shone, driven by efficiency.
• AI Concerns: Buffett likened AI’s risks to nuclear weapons, citing scams but noting operational benefits for Berkshire’s businesses.
• Market Volatility: Buffett dismissed swings as “really nothing,” noting Berkshire’s stock dropped 50% three times historically, urging long-term focus for value investing.

Top Undervalued Stocks for 2025: Elite Funds’ Picks

Our stock picking analysis identifies undervalued stocks bought in the last 6 months by top value players, including Warren Buffett’s Berkshire Hathaway, Baupost, Sequoia, and Dodge & Cox. These three value stocks align with Buffett’s 2025 themes of resilience, strong fundamentals, and opportunity, based on their financial metrics and market positioning:

• Constellation Brands (STZ): A leading alcohol producer (Corona, Modelo), STZ reported 3% sales growth in Q3 2025, driven by Modelo Especial’s rise as America’s top beer. Its strong moat—dominant brands and distribution—makes it a classic value stock. However, 25% of its supply chain faces tariff risks due to Mexican imports. Berkshire’s new $1.24B stake in Q4 2024 reflects confidence in its long-term value, with a P/E of 11.8, below the industry average of 15. Why chosen: STZ’s consistent demand, low valuation, and brand strength align with Buffett’s preference for consumer staples with durable competitive advantages, despite tariff exposure.
• Occidental Petroleum (OXY): An oil and gas leader, OXY trades at a P/E of 10.73, significantly below the energy sector’s average of 14. Its volatile sector (oil prices) requires caution, but Berkshire’s 28.2% ownership (increased by $405M in Q4 2024) signals strong conviction. OXY’s assets in the Permian Basin and Gulf of Mexico ensure steady production. Why chosen: OXY’s low P/E, high cash flow, and Buffett’s long-term energy bet make it a quintessential undervalued stock for patient value investing.
• Domino’s Pizza (DPZ): The world’s largest pizza chain, DPZ boasts 15% EPS growth in Q3 2025, driven by global expansion and digital ordering. Its P/E of 31.94 is high but justified by growth prospects, appealing to patient investors. Berkshire doubled its $1B stake in Q4 2024. Why chosen: DPZ’s strong growth, operational efficiency, and brand loyalty fit Buffett’s focus on companies with predictable earnings, making it a value stock for long-term stock picking.

Why These Stocks Matter for Value Investors

Buffett’s $347.7B cash hoard signals a disciplined hunt for undervalued stocks, while tariff risks highlight the need for strong moats. These stocks—Constellation Brands, Occidental Petroleum, and Domino’s Pizza—embody value investing 2025 principles: low P/E, growth potential, and resilience. Backed by elite funds, they offer compelling opportunities for stock picking, though tariffs and sector volatility demand scrutiny, as Buffett’s long-term focus suggests.

Investor Questions Answered: Post-Meeting Insights

The meeting sparked lively investor discussions and search trends about value investing and stock picking. Here’s what investors are asking, with answers grounded in Buffett’s insights.

Why Is Berkshire Holding $347.7B in Cash?

Some investors speculated Buffett is bearish, but he clarified high valuations deter deals. “Nothing looks compelling,” he said in his February 2025 letter. Berkshire nearly spent $10B recently but held back, prioritizing undervalued stocks. This cash offers flexibility for bargains during market dips.

How Will Greg Abel’s Leadership Differ?

Abel, 62, has led Berkshire’s non-insurance units and deals like Japanese trading houses. He pledged to uphold Buffett’s value investing philosophy, focusing on strong balance sheets. Investors worry about his stock picking, but Buffett praised Abel’s decisiveness, suggesting continuity with an operational edge.

Are Tariffs a Major Risk for Berkshire?

Buffett warned tariffs could hit retail (e.g., Shaw Industries) and railroad (BNSF) units. Investor discussions noted Berkshire’s 2024 report: 67% of Shaw’s supplier spending is U.S.-based, but global sourcing remains vulnerable. Diversified holdings like Geico mitigate risks for value stocks.

Is Value Investing Still Relevant in 2025?

An investor from China asked if high interest rates and AI-driven markets challenge value investing. Buffett reaffirmed its relevance, citing Berkshire’s 5,502,284% return since 1965. High rates demand stricter valuation discipline, making stock picking for undervalued stocks critical.

What Stocks Is Buffett Buying?

Search trends spiked for Buffett’s new bets. Berkshire added stakes in Constellation Brands, Occidental Petroleum, and Domino’s Pizza last quarter, backed by top funds. Our analysis covers their metrics—sales growth, P/E, and risks—for value investing.