Buffett’s Top Picks for 2024: Insights on Apple and American Express

Warren Buffett, renowned as one of the greatest investors, has shown consistent success. From 1965 to 2024, a $100 investment in Berkshire Hathaway would have grown to an impressive $5.5 million.

Current Investment Opportunities

If you’re considering where to invest some extra cash, take a look at Berkshire’s substantial $263 billion stock portfolio. At the close of 2024, two of Berkshire’s largest assets were Apple (NASDAQ: AAPL) and American Express (NYSE: AXP). For a total investment just over $500, you could buy shares in both companies, which hold strong positions in their respective markets and could anchor a well-diversified portfolio.

1. Apple: A Lucrative Investment

By the end of 2024, Berkshire Hathaway possessed 300 million shares of Apple, valued at $75 billion. Since initiating purchases in 2016, Apple has experienced remarkable growth, with its installed base of active devices surpassing 2.3 billion users.

Buffett favors companies with strong competitive advantages. Apple’s robust brand and the deep customer connection to its devices provide that edge. As CEO Tim Cook highlighted during the fiscal Q2 earnings call, “Apple services are enriching our users’ lives all throughout their day.”

Over half of Apple’s revenue comes from the iPhone, with its service revenue—including Apple Pay—growing rapidly. This segment generates double the gross profit margin compared to device sales, with a 12% revenue increase year-over-year last quarter.

Furthermore, Apple is venturing into artificial intelligence (AI) with plans to integrate AI across its devices, potentially boosting iPhone sales in the future.

Profitability also plays a significant role in Buffett’s interest. In the last year, Apple reported $97 billion in net income on $400 billion of revenue. Notably, it returned $29 billion to shareholders via dividends and share buybacks in the last quarter alone.

Analysts project Apple’s earnings per share will grow at an annualized rate of 11% in the long term, likely driving share prices higher.

2. American Express: A Resilient Brand

Buffett’s relationship with American Express dates back 60 years, beginning with an early investment through Buffett Partnership. By the end of 2024, Berkshire held over 151 million shares of American Express, valued at $45 billion. This brand has proven resilient, even during economic downturns.

In the last quarter, total card spending with American Express increased by 6% year-over-year, driven by strong consumer spending. This trend suggests potential for double-digit earnings per share growth.

American Express continues to attract new customers, adding 3.4 million cards in a single quarter. Importantly, 60% of new accounts were opened by millennials and Gen Z consumers, which enhances long-term growth prospects.

As card members tend to hold onto their American Express cards longer, the likelihood of upgrading to premium cards increases, leading to higher fees. In the last quarter, revenue from card fees grew by 18% year-over-year, showcasing a robust income source.

Buffett’s longstanding faith in American Express appears justified, with analysts predicting earnings growth of nearly 14% annually over the coming years, reinforcing its potential as a reliable investment.

Should You Invest $1,000 in Apple?

Before purchasing stock in Apple, consider the following:

The Motley Fool Stock Advisor team recently determined which stocks they believe are the best to buy now, and Apple was not included. The selected stocks have shown potential for substantial returns.

For example, consider Netflix, which made the list on December 17, 2004. An investment of $1,000 then would now be worth approximately $642,582*.

Similarly, Nvidia was identified on April 15, 2005, and would have transformed a $1,000 investment into roughly $829,879*.

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*Returns for Stock Advisor as of May 12, 2025.

American Express is an advertising partner of Motley Fool Money. John Ballard has no position in any of the mentioned stocks. The Motley Fool recommends Apple and Berkshire Hathaway.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.