• Coca-Cola (KO)
• Louisiana-Pacific (LPX)
• Pool Corp. (POOL)

If you’re looking to diversify your portfolio with a series of trade deals resolving the tariff dispute, it’s not hard to find stocks that are likely to go up. However, if you’re looking for stocks with relatively less exposure to potential tariffs or even some upside exposure, Warren Buffett’s Berkshire Hathaway holdings are worth considering. Here’s why Coca-Cola, Louisiana-Pacific, and Pool Corp. are worth buying right now:

Why Coca-Cola is a Safe Bet

Coca-Cola remains a longtime Warren Buffett holding, and for good reason. Its 2.8% dividend yield and relative safety in the current market make it an attractive option. As management outlined on an earnings call in February, Coca-Cola tends to produce and sell locally, which reduces its exposure to cross-border tariffs. In addition, its exposure to increased packaging costs is minimal, as aluminum is only a small part of its cost component. Its core sparkling soft drink business is also relatively immune to an economic slowdown. These factors make Coca-Cola a safe place to park money in the current environment.

Why Louisiana-Pacific Could Be a Net Winner

Louisiana-Pacific, which specializes in engineered wood siding and oriented strand board (OSB), has a more complicated relationship with tariffs. CEO William Southern argues that OSB is a “traded commodity,” meaning there’s no brand loyalty and pricing is heavily influenced by the costs of wood fiber and resin. As such, increases in tariff costs will feed through into higher prices across the industry. However, Louisiana-Pacific has two engineered wood siding mills in Canada from which it could potentially increase production for the Canadian market. This could help the company to mitigate the impact of tariffs on Canadian wood fiber. In the longer-term view, engineered wood siding can grab more market share from alternatives such as vinyl and fiber cement, and at some point, new housing starts will surely start to grow again. This provides upside potential for Louisiana-Pacific.

Pool Corp. is More Resilient Than You Might Think

Pool Corp., the wholesale distributor of pool equipment, is a surprisingly resilient business. While new pool construction is down 50% from the pandemic-induced boom in spending on the home, and management expects new pool construction in 2025 to be flat with 2024, almost 65% of its sales go to the more stable market for maintenance and minor repairs. This helps to support sales in a slowing discretionary spending environment. In addition, the 60,000 new pool units expected this year in the U.S. still represent growth in the installed base of pools, which Pool Corp. could potentially sell into. While tariffs on Chinese products are significantly higher than in February, the “vast majority” of Pool’s products are still “purchased domestically.” This reduces the company’s exposure to tariffs. However, the impact on costs from its suppliers as they suffer increased costs from tariffs is less clear. Despite this, Pool Corp. has good long-term growth prospects, largely because of ongoing pool maintenance spending and an eventual recovery in new pool construction growth.

Three Stocks to Buy

If you’re looking for stocks with relatively less exposure to potential tariffs or even some upside exposure, these three Berkshire Hathaway holdings are worth considering:

Conclusion

These three Berkshire Hathaway holdings offer a mix of defensive stocks with relatively less exposure to potential tariffs and stocks with upside potential. Whether you’re looking to diversify your portfolio or protect your investments, Coca-Cola, Louisiana-Pacific, and Pool Corp. are worth considering. As always, it’s essential to conduct thorough research and consider your individual financial goals before making any investment decisions.