Two Best Stocks to Buy in 2026: Building a Balanced Portfolio

When constructing a portfolio for 2026 and beyond, identifying the best stocks to buy requires balancing growth potential with financial stability. Among the most compelling candidates for investors seeking this equilibrium are Apple and Berkshire Hathaway—two companies that represent distinctly different investment philosophies yet complement each other effectively when paired together in a portfolio.

These companies warrant serious consideration not merely as standalone investments, but as a strategic combination. Apple delivers exposure to cutting-edge technology and demonstrates accelerating business momentum, while Berkshire Hathaway offers a fortress-like balance sheet with substantial dry powder—cash reserves that can be deployed opportunistically when market conditions shift. Together, they provide a framework for building the best stocks to buy list that addresses both growth ambitions and defensive positioning.

Why Berkshire Hathaway Remains a Best-in-Class Defensive Choice

Berkshire Hathaway occupies a distinctive position in the landscape of best stocks to buy for conservative-minded investors. The company trades at a modest valuation relative to its underlying assets—just 1.6 times book value—offering traditional value stock characteristics in an era dominated by premium-priced growth companies.

What sets Berkshire apart, however, is its extraordinary liquidity position. With over $350 billion in cash, cash equivalents, and short-term Treasury holdings, the company maintains unparalleled financial flexibility. This cash fortress provides a fundamental advantage: during market downturns or periods of economic uncertainty, Berkshire possesses the capital to acquire assets at attractive prices when other investors are forced to sell.

Beyond its cash position, Berkshire’s business model itself provides meaningful diversification. The portfolio encompasses a substantial insurance operation, a major railroad, significant energy assets, and numerous other subsidiaries spanning multiple sectors. This structural diversity creates multiple revenue streams and reduces dependency on any single business segment or industry cycle. For investors prioritizing portfolio stability, this comprehensive business platform represents a compelling feature.

Apple’s Growth Trajectory Makes It Among the Best Stocks to Buy

In contrast to Berkshire’s defensive characteristics, Apple exemplifies the growth component investors should seek among the best stocks to buy. The company demonstrated notable business acceleration in its most recent reporting period, with sales growth of 8% year-over-year during the fourth quarter of fiscal 2025, which concluded in late September 2025.

More significantly, Apple’s services segment—its highest-margin business—exhibited particularly strong momentum, expanding 15% year-over-year. The segment’s fourth-quarter growth rate accelerated ahead of its full-year expansion of 13.5%, suggesting the business is entering an inflection point with expanding velocity. This services acceleration holds particular importance because it represents predictable, recurring revenue that drives superior profitability relative to hardware sales.

The company’s overall fiscal 2025 performance validated the growth narrative. After a subdued fiscal 2024 when sales expanded merely 2%, fiscal 2025 results delivered a refreshing reminder that Apple remains a fundamentally growing enterprise. Total fiscal 2025 revenue reached $416 billion—a record level—accompanied by double-digit earnings per share growth. This performance underscores Apple’s ability to expand both top-line revenues and bottom-line profitability simultaneously.

Beyond growth metrics, Apple’s financial discipline merits recognition. The company generated robust free cash flow throughout fiscal 2025, which, combined with its net cash position (total cash exceeds total debt), enabled continued shareholder returns through both dividend payments and aggressive share repurchases. The company repurchased $90.7 billion in stock during the year alone—a substantial commitment to capital efficiency and shareholder value creation.

Apple’s forward-looking guidance reinforces the growth thesis. Management expects revenue growth of 10% to 12% in the important holiday quarter, driven by a strong iPhone product cycle and continued double-digit expansion in its high-margin services business. Currently trading at a forward price-to-earnings multiple of 33x, this valuation reflects these growth expectations—and appears justified given the demonstrated business momentum and management’s confident outlook.

Combining Growth and Value: Why These Are Best Stocks to Buy Together

The true power of these two holdings emerges when viewed as complementary portfolio components rather than standalone investments. Apple and Berkshire Hathaway embody fundamentally different investment approaches—growth versus value—yet their differences create portfolio synergy.

Apple’s business model concentrates revenue heavily in growth assets and technology disruption. More than half of its revenue derives from iPhone sales, creating both enormous opportunity and concentrated risk. Investors gain direct exposure to technology trends, consumer demand, and innovation cycles. Meanwhile, Berkshire provides ballast—a company valuing financial optionality over growth, favoring proven business models over emerging technologies.

This pairing addresses a core portfolio construction challenge: how to capture growth opportunities without assuming excessive volatility. Apple provides that growth exposure through its expanding services business and premium market position. Berkshire mitigates portfolio stress during market disruptions by maintaining the flexibility to acquire assets when valuations become attractive. The combination offers both offense and defense within a relatively compact portfolio structure.

For investors seeking the best stocks to buy that deliver this strategic balance, this pairing represents an economically efficient solution that reduces the need for constant portfolio rebalancing or tactical positioning.

Risk Factors to Monitor Through 2026

Despite their compelling characteristics, both companies present risks that warrant careful monitoring throughout 2026.

Apple’s concentration risk remains its primary vulnerability. The company’s dependence on iPhone sales for more than 50% of revenues creates exposure to smartphone market cycles. If global handset demand falters or competitive pressures intensify, revenue and profitability could experience meaningful pressure. Additionally, Apple’s global revenue streams expose the company to geopolitical disruptions, trade policy shifts, and regional economic weakness. Investors should recognize that the company’s premium valuation—justified by growth expectations—leaves limited margin for error should execution falter or guidance disappoint.

Berkshire faces a significant structural transition heading into 2026. The company entered a new era following 2025, as Warren Buffett stepped back from his CEO role while remaining as chairman without operational control. Successor Greg Abel now carries primary responsibility for the company’s strategic direction and capital allocation. The market will closely scrutinize Abel’s investment decisions—particularly his deployment of Berkshire’s vast cash reserves. His ability to deploy capital productively at scale, while maintaining the company’s risk management standards, will significantly influence Berkshire’s performance trajectory.

Additionally, the stakes surrounding Berkshire’s future decision-making have elevated given the magnitude of the company’s cash position. Material capital deployment errors or prolonged periods of cash accumulation could frustrate investors and create headwinds for the stock.

Building Your Best Stocks to Buy List for 2026

For investors constructing a portfolio positioned for 2026 and beyond, Apple and Berkshire Hathaway merit serious consideration among the best stocks to buy. They offer complementary characteristics—growth complemented by financial stability, innovation paired with proven business models, and premium valuations balanced by fortress-like financial positioning.

This combination provides investors with a foundation upon which to build a more comprehensive portfolio, addressing core requirements for both growth participation and downside protection.