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Should You Buy Warren Buffett's 3 Best-Performing Stocks So Far This Year?
BYDDYBYD(BYDDY) The Motley Fool·2025-04-19 09:45

Core Viewpoint - The article discusses the performance of Warren Buffett's top three stocks in 2025, highlighting their significant gains and potential as investment opportunities. Group 1: BYD - BYD has seen a remarkable increase of nearly 40% in 2025, making it Buffett's biggest winner this year [2] - The company's success is attributed to the introduction of new self-driving technology utilizing AI from DeepSeek and Tesla's sales decline [3] - BYD's PEG ratio is 0.92, indicating an attractive valuation, although potential government interference poses a risk for investors [4] Group 2: VeriSign - VeriSign's shares have surged close to 21% year to date, ranking as Buffett's second-best-performing stock [5] - The company holds a monopoly on ".com" domain registrations, having extended its agreement with ICANN through November 2030 [6] - Despite its strong position, VeriSign's high valuation at 28.7 times forward earnings raises concerns about its earnings growth justifying the premium [6] Group 3: T-Mobile US - T-Mobile US shares have increased approximately 20% year to date, closely competing with VeriSign for the second spot among Buffett's stocks [7] - The company reported a 6% year-over-year increase in service revenue and a 48% rise in earnings for Q4 2024, along with strong customer growth [8] - T-Mobile's recent acquisitions and joint ventures, including those in adtech and fiber-to-home services, indicate a proactive business development strategy [9] - The stock trades at 25 times forward earnings, which is considered high, but long-term investors may find it attractive [10]