6 Stocks Warren Buffett Would Never Buy Today

NEWS & TRENDING - INVESTING NEWS
Many people look to Warren Buffett for stock market advice. Here are some stocks we doubt he’d touch with a 10-foot pole.
Updated May 1, 2024
Fact checked
 hand giving cheque to customer

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

With a net worth of more than $100 billion, it’s no wonder that aspiring financial investors turn to Warren Buffett for advice as they try to get rich and stop living paycheck to paycheck.

The “Oracle of Omaha” famously bought his first stock while he was still a child and has since accumulated extreme wealth as one of the world’s best investors.

Fortunately for us, Buffett has been pretty public with his investment philosophy, which is most accurately described as “value investing.” Buffett likes to single out underestimated stocks that are often trading for less than they’re worth and purchases them at bargain or fair prices.

Trying to guess which stocks Buffett might be interested in buying next is a tall order. But it’s easier to pinpoint stocks Buffett probably wouldn’t invest in. The following six stocks are some of them.

Tesla

Moose/Adobe Tesla Model X P100D interior logo at the rear trunk

Tesla is the world’s most famous manufacturer of electric vehicles. Founded in 2003, Tesla focuses not just on making cars but also on the production of scalable green-energy solutions.

Despite Tesla being one of the world’s most popular companies, it’s not likely one that Buffett would jump at the opportunity to invest in. In fact, he’s publicly said that he wouldn’t — although he declined to give any details behind this answer.

However, Buffett’s stance might have something to do with Tesla being less of a “car” company and more of a “tech” company. Buffett notoriously dislikes the latter, with the exception of Apple.

Peloton

Photo courtesy of peloton.com Woman working out at home with a Peloton bike

Remember the early days of the pandemic, when it seemed like just about everyone wanted a Peloton? In March 2020, Peloton had around 2.6 million subscribers. By the same period the following year, subscriber numbers had more than doubled, to 5.4 million.

But whether or not this at-home fitness equipment company has staying power is not yet clear. The company has struggled since and has had to lay off employees and raise prices. The fact that its popularity could be fleeting would likely keep Buffett away.

Coinbase

Diego/Adobe man holding a smartphone with Coinbase exchange app on the screen

Despite having more than 100 million users across the world, Coinbase is an online trading platform for cryptocurrency, a type of digital currency that’s very hard to counterfeit or manipulate.

Buffett is famously anti-crypto, stating in 2018 that he thinks cryptocurrencies “will have a bad ending.” We doubt he’d touch Coinbase.

Robinhood

Postmodern Studio/Adobe robinhood.com company website

Robinhood is a well-known investing app. Through its easy-to-use platform, users can trade stocks, ETFs, and even crypto. As an investing enthusiast, you might think that Buffett would be a fan of the app. But the reality is quite the contrary.

At its core, the gap between Robinhood and Buffett boils down to a philosophical difference. It’s no secret that Buffett thinks nobody should invest without first engaging in a great degree of thought and consideration.

Robinhood, on the other hand, makes stock trading so easy that you can do it with your right hand as you eat cereal with your left. Buffett probably doesn’t believe in the app, so he wouldn’t invest in it.

PayPal

Girts/Adobe woman uses smartphone on the table  showing screen Paypal web page

In terms of tech companies, PayPal is a dinosaur. The online wallet platform has been around for more than 20 years and has hundreds of millions of users.

This company history could mean that it passes the test for Buffett. But PayPal is, at the end of the day, a technology company. Buffett typically is reluctant to invest in such companies.


Zoom

Girts/Adobe young man having Zoom video call via a computer in the home office

Only the original remote workers had any idea what Zoom was before the global pandemic kept most of us confined to our homes.

Once those homes began to double as work spaces, just about everyone became familiar with Zoom.

Even as many people have returned to the office, Zoom is still a household name, as millions prefer remote work to heading back into an office.

Impressive as this may be, Buffett would likely turn up his nose at Zoom. It has that “intangible” quality shared by many tech companies, and Buffett likes certainties. He would probably also still need to be convinced that remote work is here to stay and a competitor couldn’t come along and replace Zoom.

Bottom line

Sakchai/Adobe stock exchange market chart

Even if these stocks wouldn’t be a good fit for Buffett, it doesn’t mean they wouldn’t be right at home in your portfolio.

Remember, stock investing is a personal thing, and what’s right or wrong for someone else shouldn’t dictate the way you play your cards. In some cases, the right tech stocks can be great buys, for example, helping you make more money.

Doing your homework and picking the right stocks might lead to a life with less money stress and more riches.

4.4

Public Benefits

  • Get $3-$300 in free stock when your account is approved*
  • Invest in 1000s of stocks and ETFs with fractional shares—no account minimums
  • Follow friends in a social feed and learn from a diverse community of investors
  • * Free stock offer valid for U.S. residents 18+. Subject to account approval.
Visit Public

Author Details

Rachel Cribby Rachel Cribby is a personal finance writer from Canada. Once a terrible math student with a fear of numbers, Rachel has embraced the world of personal finance and is passionate about empowering others to do the same. She especially loves taking topics that seem complicated and boring and making them interesting and easy to understand.

Want to learn how to make an extra $200?

Get proven ways to earn extra cash from your phone, computer, & more with Extra.

You will receive emails from FinanceBuzz.com. Unsubscribe at any time. Privacy Policy

  • Vetted side hustles
  • Exclusive offers to save money daily
  • Expert tips to help manage and escape debt