Warren Buffett’s Favorite Stocks Now Come With a 15% Income Boost

• Berkshire Hathaway’s 17% year-to-date return outperforms the S&P 500’s (^GSPC) 6% decline, with a 185% five-year return, positioning it in the top 10% of large-cap leaders.
• The VistaShares Target 15 Berkshire Select Income ETF (OMAH), with Berkshire as its top holding at 10.6%, targets 15% annual income through call options, distributing 1.25% monthly.
• Buffett’s focus on quality equities and record cash reserves, alongside holdings like Apple, Coca-Cola, and Visa, drives Berkshire’s resilience amid an 8% S&P 500 drop since January 20.

Warren Buffett’s Berkshire Hathaway (BRK-A, BRK-B) has emerged as a standout performer in a turbulent market, delivering a 17% year-to-date return, significantly outpacing the S&P 500’s (^GSPC) 6% decline. This resilience has positioned Berkshire among the top 10% of large-cap leaders in the U.S., drawing heightened interest as the company approaches its annual shareholder meeting in Omaha, Nebraska. The strong performance also underscores the timely launch of the VistaShares Target 15 Berkshire Select Income ETF (OMAH), which holds Berkshire Hathaway as its largest position at 10.6% of the fund, alongside key Berkshire investments such as Apple (AAPL), American Express (AXP), Kroger (KR), VeriSign (VRSN), Bank of America (BAC), Citigroup (C), Visa (V), and Coca-Cola (KO), a long-standing Buffett favorite.

The ETF, designed to emulate Buffett’s investment philosophy while addressing investor demand for income, targets a 15% annual yield through a strategy of selling call options, distributing monthly payments of 1.25% to shareholders. Adam Patti, CEO of VistaShares, emphasized the ETF’s appeal on CNBC’s “ETF Edge,” noting that it offers a balanced portfolio curated by “the most successful investor the world has ever seen.” The fund’s structure responds to a longstanding critique of Berkshire’s strategy, as Buffett has consistently eschewed dividends, believing reinvestment generates greater shareholder value. In his February letter to shareholders, Buffett reaffirmed Berkshire’s commitment to deploying the majority of its capital in equities, primarily American, reinforcing his long-term confidence in the U.S. market.

Berkshire’s outperformance extends beyond 2025, with a 185% return over the past five years, more than doubling the S&P 500, and tripling the market’s performance over the past year. This track record reflects Buffett’s disciplined focus on quality investments, a strategy that has proven prescient amid recent market volatility. Since President Donald Trump’s inauguration on January 20, the S&P 500 has faced an 8% decline, exacerbated by momentum-driven swings, yet Berkshire’s emphasis on fundamentally strong companies has insulated it from broader market pressures. Patti highlighted this shift toward quality, noting that Berkshire’s performance reflects a market increasingly rewarding stability over speculative growth.

Buffett’s strategic decisions, including trimming stakes in major holdings like Apple and amassing a record cash reserve, have further bolstered Berkshire’s agility in navigating uncertainty. This cash hoard provides a buffer against market downturns and positions Berkshire to capitalize on undervalued opportunities, a hallmark of Buffett’s approach. The VistaShares ETF leverages this expertise while addressing investor demand for income, a growing trend in the ETF space as asset managers innovate to meet the needs of a volatility-wary market. By combining Buffett’s equity selections with an income-generating options strategy, the fund offers a unique vehicle for investors seeking to align with the Oracle of Omaha’s vision while securing consistent payouts, amplifying Berkshire’s influence in a challenging economic landscape.

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