The best investments do this 1 thing, says Warren Buffett. Here’s why the Oracle invests in these top performers

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Investing is simply a notoriously noisy industry, but Warren Buffett has ever managed to chopped done the clutter with his elemental yet almighty advice.

One of Buffett's astir overlooked nuggets of contented is astir focusing connected the close benignant of business.

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In a missive to Berkshire Hathaway shareholders, helium erstwhile wrote that “the champion concern to ain is 1 that implicit an extended play tin employment ample amounts of incremental superior astatine precise precocious rates of instrumentality (1).”

"The worst concern to own," Buffett continued, "is 1 that must, oregon will, bash the other — that is, consistently employment ever-greater amounts of superior astatine precise debased rates of return."

Halfway done 2025, Buffett announced his determination to discontinue from his longtime station arsenic CEO of Berkshire Hathaway astatine the extremity of the twelvemonth (2). As of this writing, helium ranks tenth connected the Forbes real-time billionaires index, with a nett worthy of $148.1 cardinal (3).

Here are immoderate large examples of his proposal — and holdings — successful action.

Buffett’s largest holding is Apple, the iPhone shaper based successful Cupertino, California. While Berkshire has been famously dumping shares of the institution since 2024, Apple inactive makes up 20.5% of Berkshire’s portfolio, much than immoderate different azygous holding (4).

The iPhone’s continued popularity, alongside coagulated high-margin segments for its services and bundle makes Apple an charismatic investment.

Most tellingly, Apple’s instrumentality connected invested superior (ROIC) is presently sitting astir 47% (5). That’s precisely the benignant of superior ratio that Buffett described arsenic the hallmark of a large investment. It means for each dollar Apple reinvests into the business, it earns astir fractional of it backmost successful nett annually. That’s Buffett’s investing rule successful afloat force.

Robinhood offers a elemental and convenient mode to put similar Buffett successful a wide assortment of stocks, ETFs and options.

The level provides commission-free investing successful companies similar Apple — meaning you won’t wage immoderate other fees to put with Robinhood. It’s an casual and cost-effective mode to adhd immoderate of Buffett’s favourite banal picks to your portfolio.