The Best Warren Buffett Stocks to Buy With $500 Right Now

By Adria Cimino – Dec 17, 2025 at 6:10PM ESTKey PointsOne of these players is known for its long track record of dividend growth.The other company is a market giant that’s faced tough times -- but it looks like a promising recovery story is just ahead.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: KOCoca-ColaMarket Cap$303BToday's Changeangle-down(0.43%) $0.30Current Price$70.67Price as of December 17, 2025 at 4:00 PM ETBoth of these stocks have something Buffett appreciates: a reasonable price.Investors trust Warren Buffett's stock picks for one particular reason: his track record. The billionaire, at the helm of Berkshire Hathaway for nearly 60 years, has led market-beating gains over that time period. Berkshire has delivered a compounded annual gain of about 20%, while the S&P 500 generated a compounded increase of 10%. So, investors know that Buffett's strategy has worked over and over throughout the years. One thing that's very important to Buffett when buying a stock is valuation. The top investor looks for players that are undervalued or at least trade at reasonable levels -- he won't pay ridiculous amounts to get in on a company. Buffett also likes companies with a strong moat, or competitive advantage, and always appreciates a growing dividend. I considered all of this as I looked into Buffett's portfolio and decided which stocks make the best buys with $500 right now. With that amount, you can either invest in one of the following or get in on both. Let's check them out. Image source: Getty Images. 1. Coca-Cola If you visit Buffett in his office, you might find him with a glass of Coca-Cola (KO +0.43%) in his hand -- but Buffett didn't buy this stock several years ago just because he likes the company's eponymous beverage. One of the reasons he bought it is because he knows so many others in the world like the drink too. The company has a solid brand moat, meaning soda drinkers will specifically ask for Coca-Cola and won't take just any other cola beverage. The company doesn't count on one drink, though, and instead has a portfolio of 200 brands, including sparkling beverages, water, coffee, juices, and more. Many of these brands are well-known names, but Coca-Cola isn't relying on that to keep growth going. The company also innovates to suit the tastes and priorities of specific markets.Advertisement All of this has kept it in its spot as the world's biggest seller of non-alcoholic beverages and has helped it gain market share quarter after quarter. ExpandNYSE: KOCoca-ColaToday's Change(0.43%) $0.30Current Price$70.67Key Data PointsMarket Cap$303BDay's Range$70.31 - $70.9252wk Range$60.62 - $74.38Volume14MAvg Vol17MGross Margin61.55%Dividend Yield2.90% Finally, another reason to get in on this stock is that the company will pay you just for owning it: Coca-Cola not only offers investors a dividend, but it's also increased the payment for more than 50 years, earning it a spot on the list of Dividend Kings. Coca-Cola's valuation doesn't fluctuate by much -- it trades for 23x forward earnings estimates now, with a range of about 20x to 25x over the past three years. So, at today's level, it's a very reasonable buy. 2. UnitedHealth Group UnitedHealth Group (UNH 0.77%) has gone through some tough times over the past year. The company unexpectedly lost its chief executive officer, the Justice Department launched a probe into its Medicare billing processes, and earnings have suffered due to a variety of challenges. And yet, top investor Buffett bought the shares this year. Here's why UnitedHealth looks like a promising recovery story. ExpandNYSE: UNHUnitedHealth GroupToday's Change(-0.77%) $-2.57Current Price$331.63Key Data PointsMarket Cap$303BDay's Range$330.48 - $335.5252wk Range$234.60 - $606.36Volume4.7MAvg Vol8.3MDividend Yield2.61% First, it's important to consider that, as the biggest U.S. health insurer with health insurance and services units, the company has a significant moat. Second, UnitedHealth has taken action to address key issues weighing on earnings -- from higher healthcare costs to greater-than-expected use of certain services. The company has made several moves, such as adjusting prices, cutting certain plans, and even using artificial intelligence (AI) to gain efficiency. All of this is starting to produce results. In the latest quarter, UnitedHealth raised its full-year earnings outlook, and new CEO Stephen Hemsley said actions taken now should support "higher and sustainable double-digit growth beginning in 2027 and advancing from there." Meanwhile, the stock is trading for 20x forward earnings estimates, down from more than 32x earlier this year -- this is a great entry point considering UnitedHealth's long-term prospects. Buffett probably liked UnitedHealth's moat and price tag. While the moat will last, the price may not, making now the perfect time to invest at least part of your $500 in this Buffett stock.About the AuthorAdria Cimino is a contributing Motley Fool stock market analyst covering healthcare, technology, and consumer goods sectors. Prior to The Motley Fool, Adria covered the European stock market and U.S. stocks pre-market trading for Bloomberg News, Bloomberg TV, and Bloomberg Radio for more than a decade. Earlier in her career, she wrote about biotech, medtech, and technology companies in Boston for Mass High Tech, an American City Business Journals publication. She holds a bachelor’s degree in mass communications from the University of South Florida.TMFAdriaCiminoX@adria_in_parisRead NextDec 16, 2025 •By Patrick Sanders3 Top Buffett Stocks to Buy and Hold for the Long HaulDec 16, 2025 •By Parkev Tatevosian, CFAShould Dividend Stock Investors Buy Coca-Cola Stock Before 2026?Dec 16, 2025 •By Daniel FoelberAll It Takes Is $6,500 Invested in Coca-Cola and This High-Yield Dividend Stock to Help Generate $539 in Passive Income in 2026Dec 14, 2025 •By Neil PatelHere's How Many Shares of Coca-Cola You'd Need for $10,000 in Yearly DividendsDec 14, 2025 •By Adria CiminoStart the New Year Off With Passive Income: 3 Dividend Kings to Buy NowDec 12, 2025 •By Todd ShriberWhat to Watch With KO Stock in 2026