The Three Strong Stocks Worth Your Long-Term Investment Consideration
Investing like Warren Buffett doesn’t necessitate directly copying his moves. Instead, you can adopt his mindset and principles. Buffett emphasizes simplicity and predictability, making the three stocks listed below potential fits for his portfolio. Even if they don’t find a place in Berkshire Hathaway, they can still be solid investment choices for the long haul.
Microsoft (NASDAQ: MSFT), Uber Technologies (NYSE: UBER), and Enbridge (NYSE: ENB) are showing strong business fundamentals. While none are in Berkshire’s portfolio as of now, they present excellent options worth considering.
1. Microsoft
Had it not been for Buffett’s close tie with Microsoft co-founder Bill Gates, Microsoft would likely already be a staple in Berkshire’s holdings. With robust fundamentals and a powerful brand, it’s challenging for competitors to take their market share.
Many businesses globally depend on Microsoft’s software for their daily operations. Recently, Microsoft has been investing in artificial intelligence (AI) to bolster its growth prospects through AI-powered products and software enhancements.
CEO Satya Nadella states that “cloud and AI are essential inputs for every business to expand output, reduce costs, and accelerate growth.” With such a focus, Microsoft seems poised for continuing growth alongside its client businesses.
In the past year, Microsoft achieved over $270 billion in sales, with nearly $97 billion in profit, reflecting an impressive margin of 36%. Given its solid earnings and growth potential, Microsoft aligns well with Buffett’s investment philosophy.
2. Uber Technologies
Buffett typically avoids tech stocks, but if he were to invest in one, Uber might catch his interest. Uber operates on an asset-light model where its value lies in the app that allows drivers to use their vehicles as taxis. This business approach allows for healthier profit margins.
Over the last four quarters, Uber saw a net income of over $12 billion, representing approximately 27% of its $45 billion in revenue. Comparatively, just four years ago, Uber had less than $18 billion in sales and struggled to turn a profit. Now, ride-sharing is gaining traction, enabling Uber to scale rapidly.
While concerns about driverless vehicles potentially impacting market share exist, there’s potential for collaboration. Uber and Alphabet-owned Waymo are partnering to roll out self-driving cars in new cities.
3. Enbridge
Buffett has shown interest in the energy sector, with some of Berkshire’s top holdings in oil and gas, such as Chevron and Occidental Petroleum. He may not invest in every oil and gas stock, but his optimism about the sector is clear. Enbridge represents an option that embodies consistency and reliability.
Enbridge consistently meets its financial guidance, having done so for 19 consecutive years, as highlighted in its recent year-end report. The Canadian pipeline company relies on long-term contracts, offering visibility into earnings and minimizing risks for investors.
For the upcoming years, Enbridge anticipates a 4% to 6% growth in adjusted earnings per share, which could lead to further dividend increases. Having raised its dividend for 30 years, Enbridge aligns with Buffett’s fondness for income-generating investments.
Considerations Before Investing in Microsoft
If you’re thinking about investing in Microsoft, take this into account:
The Motley Fool Stock Advisor analyst team recently identified the 10 best stocks for investors to buy, and Microsoft wasn’t on that list. The stocks featured are considered prime candidates for significant returns in the coming years.
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*Returns calculated as of May 12, 2025
Suzanne Frey, an executive at Alphabet, is on the board of directors for The Motley Fool. David Jagielski has no stake in the stocks mentioned. The Motley Fool advises positions in and recommends Alphabet, Berkshire Hathaway, Chevron, Enbridge, Microsoft, and Uber Technologies. The Motley Fool also recommends Occidental Petroleum and has options related to Microsoft.
The views expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.
