Buffett's Best Kept Secrets: 2 Stocks That Defied the Market Crash

The Markets Are Dropping, But These 2 Buffett Stocks Are Holding Steady

By Daniel Foelber, The Motley Fool

April 9, 2025

The stock market has been on a wild ride lately, with the S&P 500 index plummeting over 2% in the past week alone. But while many investors are scrambling to find safe havens, two of Warren Buffett's favorite stocks are bucking the trend and holding their value.

We're talking, of course, about Coca-Cola (NYSE: KO) and Wells Fargo (NYSE: WFC). Both companies are stalwarts in their respective industries, and both have a long history of delivering strong returns to shareholders.

Coca-Cola, the iconic beverage giant, has been a Buffett favorite for decades. The Oracle of Omaha has owned a significant stake in the company since the 1980s, and has consistently praised its strong brand recognition, global reach, and ability to adapt to changing consumer preferences. Despite the recent market volatility, Coca-Cola's share price has remained relatively steady, down just 1.5% in the past week.

Wells Fargo, on the other hand, has been a more recent addition to Buffett's portfolio. The financial services giant has been a key player in the US banking industry for over 150 years, and has a reputation for stability and reliability. Like Coca-Cola, Wells Fargo's share price has held up remarkably well in the face of market turmoil, declining just 1.2% in the past week.

So why are these two Buffett stocks holding steady while the broader market is in turmoil? There are a few reasons. For one, both Coca-Cola and Wells Fargo have strong balance sheets and are generating significant cash flow. This gives them the flexibility to weather any economic storms that may come their way.

Another reason is that both companies have a strong track record of delivering consistent returns to shareholders. Coca-Cola has increased its dividend payout for 58 consecutive years, while Wells Fargo has increased its dividend payout for 12 consecutive years. This kind of consistency is music to the ears of value investors like Buffett, who are looking for stocks that can provide a steady stream of income over the long term.

Of course, no investment is completely immune to market volatility. But for investors looking for a safe haven in these uncertain times, Coca-Cola and Wells Fargo are definitely worth considering. With their strong financials, consistent dividend payments, and long history of stability, these two Buffett stocks are well-positioned to weather any storm that may come their way.