Warren Buffett (Trades, Portfolio) is making waves to close out 2024, doubling down on his belief in VeriSign (NASDAQ:VRSN), the internet domain-name registry powerhouse. Through Geico, Berkshire Hathaway (BRK.A) (BRK.B) snapped up another 76,487 shares this past week, shelling out $15.6 million in the process. That brings Berkshire's total holdings to a whopping 13.2 million shares, worth $2.7 billion at current prices. Despite sitting out a two-year S&P 500 rally that's up 50%, VeriSign's flat performance may be the hidden gem Buffett sees shining in 2025.

• Warning! GuruFocus has detected 4 Warning Signs with VRSN.

Why the confidence? Let's talk margins. VeriSign is a financial fortress, with an 88% gross margin (11th best in the S&P 500), a 71% operating margin, and a 52% net-income margin. And here's the kicker: those numbers are all up compared to last year. It's not just the numbers, though. VeriSign owns the digital real estate game, controlling registrations for dot-com and dot-net domainsprime assets in an increasingly online world. Buffett isn't just buying a stock; he's staking a claim on an indispensable part of the internet's backbone.

For investors, this is more than a headlineit's a wake-up call. Berkshire's moves often hint at long-term plays, and this looks like no exception. With historic highs still within reach, VeriSign could be the sleeper stock ready to break out in 2025. As Buffett digs in, the market might finally catch on to what he's seeing: a high-margin cash machine poised for its next big act.