Although Warren Buffett, hailed as the “greatest investor of all time,” stepped down as Chairman and CEO of Berkshire Hathaway in December 2025, his successor, Greg Abel, has made it clear that the company’s core investment philosophy will continue. In his latest letter to shareholders, Abel committed to maintaining Berkshire’s decentralized structure and indicated a steady strategy regarding key holdings like American Express and Coca-Cola. Analysts suggest this approach also applies to three stocks within Berkshire’s portfolio that possess long-term potential: Chevron (CVX), Domino’s Pizza (DPZ), and DaVita (DVA).
Berkshire currently holds a 6.5% stake in Chevron, valued at approximately $24.7 billion based on the current stock price. Recent strength in energy prices has driven the stock up nearly 25%, but even during the period of low oil prices months ago, its strategic focus on increasing production and reducing costs had already signaled strong potential for a profitability rebound. As conflicts in the Middle East continue to escalate, oil prices are expected to remain elevated, which will further amplify the gains from the company’s operational improvements. Analysts believe the positive effects of Chevron’s transformation strategy will continue to manifest over the next several years.
Domino’s Pizza currently trades at a forward price-to-earnings (P/E) ratio of approximately 21, placing it at the higher end of the valuation range for the fast-food industry. BTIG analyst Peter Saleh reaffirmed a “Buy” rating on the stock, pointing out its consistent positive same-store sales growth, while competitors like Yum! Brands’ Pizza Hut unit and Papa John’s International have experienced declines in same-store sales. If this strong performance continues to gain market attention, Domino’s valuation could potentially move towards that of Yum! Brands (forward P/E around 25) and McDonald’s (forward P/E around 24). Modest valuation multiple expansion, coupled with steady earnings growth, could position Domino’s as a candidate for long-term compound returns.
Among Berkshire’s numerous holdings, kidney dialysis service provider DaVita receives relatively less market attention and recognition. The company has long struggled with stagnant patient numbers and rising costs. Although its full-year earnings declined by 11.7% last year, its fourth-quarter results significantly exceeded Wall Street expectations, setting the stage for a recovery. Management provided positive guidance for 2026, forecasting adjusted earnings per share between $13.6 and $15. This suggests its current forward P/E ratio could be as low as 10 times. In the long term, if profitability returns to a growth trajectory, or if it further expands its scope of kidney care services, its valuation multiple has the potential to increase significantly.
