The article identifies three key Warren Buffett-backed investments presenting attractive opportunities: Amazon (AMZN), American Express (AXP), and Berkshire Hathaway (BRK.A/B) itself. Amazon, despite recent weak guidance, exhibits strong e-commerce growth and highly profitable AWS operations poised for significant cloud market expansion. American Express, now Berkshire's second-largest holding, demonstrates robust loan portfolio growth with superior credit quality and is well-positioned to benefit from potential interest rate shifts. Berkshire Hathaway offers stable underlying businesses and a substantial cash reserve, providing financial flexibility and significant interest income amid market uncertainty.
Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) owns a massive stock portfolio worth about $300 billion, with many of the stocks chosen by legendary investor Warren Buffett himself. There are more than 40 stocks in Berkshire's portfolio, and there's a solid case to be made for virtually all of them as long-term investments. Having said that, some look more attractive than others right now. Here are three Warren Buffett stocks in particular that could be worth a closer look if you have an extra $1,000 or more to put to work. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Two amazing businesses with lots of room to grow Amazon.com (NASDAQ: AMZN) hasn't exactly been the best-performing megacap technology stock of 2025. It took a hit recently after reporting weak guidance for the first quarter and now trades for about 10% below its recent high. However, there's a lot to like about Amazon right now. On the e-commerce side, sales grew by 10% year-over-year in the crucial holiday shopping quarter and still have a lot of room to grow. According to the Census Bureau, e-commerce still makes up just 16% of retail sales in the United States, and Amazon is larger than its next 10 competitors combined. The AWS (Amazon Web Services) side is even more impressive right now. Not only is it growing at nearly twice the rate of the e-commerce business, but it is by far the most profitable part of Amazon. Despite making up just 15% of Amazon's revenue, it accounts for half of the company's operating income. CEO Andy Jassy has done a fantastic job of improving efficiency, and Amazon's bottom line could grow rapidly in the next few years, especially if the AWS business continues to grow. And with the cloud computing market expected to more than triple in size by 2032, this seems like a probable outcome. An industry-leading business American Express (NYSE: AXP) has overtaken Bank of America (NYSE: BAC) as Berkshire's second-largest stock investment, and it's been a longtime Buffett favorite. And its recent performance shows that it's still a best-in-breed credit card business. Although there are widespread concerns about consumer spending, Amex managed to grow its loan portfolio 10% year-over-year in the most recent quarter. More impressively, Amex grows without taking on excessive risk. Its annualized card member loan and receivable charge-off rate is 1.9%, and to put this into perspective, that's about one-third of Capital One's (NYSE: COF) credit card charge-off rate. American Express has done a fantastic job of creating products that appeal to the "mass-affluent," particularly those in the younger generations. It has a best-in-class customer base, and earns interest income as well as swipe fees, unlike most other credit card lenders. And finally, it could be a major beneficiary of falling interest rates, lower corporate taxes, and looser regulations -- all trends that are likely to happen over the next few years. Could this be the best Buffett stock to buy right now? As a final thought, perhaps the best Warren Buffett stock to buy right now is Berkshire Hathaway itself. Not only are Berkshire's underlying businesses largely doing just fine and producing billions in operating profits every quarter, but Berkshire's $325 billion cash stockpile (which has likely increased since that number was reported) is a major factor, especially if you're worried about the uncertainty of the economy and stock market. For the time being, Berkshire's cash is generating well in excess of $10 billion in annual interest income. But it also gives the company unmatched financial flexibility to take advantage of market volatility or economic weakness if it arrives. Don’t miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this. On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves: - Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $361,026! - Apple: if you invested $1,000 when we doubled down in 2008, you’d have $46,425! - Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $562,659! Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon. Stock Advisor returns as of February 3, 2025 American Express is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Matt Frankel has positions in Amazon, American Express, Bank of America, Berkshire Hathaway, and Capital One Financial. The Motley Fool has positions in and recommends Amazon, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The analysis highlights three distinct investment opportunities within Berkshire Hathaway's portfolio, each with a unique risk-reward profile. First, Amazon (AMZN) is presented as a long-term growth play despite recent stock underperformance stemming from weak first-quarter guidance. Its fundamental strength is anchored by 10% year-over-year growth in e-commerce and the significant profitability of its AWS division, which contributes 50% of operating income from just 15% of revenue and is positioned to capitalize on a cloud market projected to triple by 2032. Second, American Express (AXP) is identified as a high-quality financial holding, now Berkshire's second-largest stock investment. The company demonstrates resilience with 10% loan portfolio growth amidst consumer spending concerns, while maintaining superior credit quality evidenced by a 1.9% charge-off rate—roughly one-third that of competitor Capital One. Its focus on affluent customers and dual-revenue model position it favorably for potential macroeconomic shifts like falling interest rates. Finally, Berkshire Hathaway (BRK.B) itself is framed as a defensive and opportunistic investment. Its core strength lies in a massive $325 billion cash stockpile that not only generates over $10 billion in annual interest income but also provides unmatched financial flexibility to capitalize on market volatility or economic downturns.
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