Warren Buffett’s Top Picks: Invest Like a Billionaire
Warren Buffett is a name synonymous with investment success. His achievements and those of his company, Berkshire Hathaway, have set him apart from the competition, garnering significant attention from investors.
Many investors look to Berkshire Hathaway’s portfolio for guidance on where to invest. While Buffett’s resources and objectives differ from those of average investors, his strategies can still offer valuable insights and inspiration.
Considering investing $1,000? Our analyst team has revealed their picks for the 10 best stocks to buy today. Continue »
If you’re interested in adding some of Buffett’s stock choices to your portfolio, here are two to consider.
Image source: Getty Images.
1. Amazon
Amazon (NASDAQ: AMZN) is a stock that Buffett has shown hesitation in investing in, but it seems he is pleased he allowed his managers to invest in it. Berkshire Hathaway first acquired shares in Amazon in 2019, and its value has more than doubled since then.
Despite a decline related to President Trump’s tariff announcements affecting import costs from China, Amazon’s business model remains strong in the long term. Many third-party sellers on their platform may face challenges due to these tariffs, but the impact on Amazon’s overall business should be minimal.
Amazon’s profits are heavily driven by its cloud service, Amazon Web Services (AWS), which should remain largely unaffected by tariffs. AWS is a high-margin segment with notable growth prospects, especially in relation to advancements in artificial intelligence.
In fact, if AWS were considered an independent business, its projected revenue for 2024—$107.6 billion—would surpass that of Bank of America, Tesla, and Walt Disney. Furthermore, AWS’s anticipated operating income of $39.8 billion represents 58% of Amazon’s total operating income for the same year, exceeding many companies in the S&P 500.
AMZN Revenue (Annual) data by YCharts
Amazon is not limited to e-commerce and AWS. It is gradually encompassing various sectors, including advertising, healthcare, entertainment, and logistics. This diversification positions Amazon well for long-term growth, enabling it to withstand economic downturns and leverage new technologies.
2. Visa
Visa (NYSE: V) may not be one of Berkshire Hathaway’s largest holdings, but it is definitely a stock I would retain for the long term without hesitation.
Visa enjoys a unique competitive edge through its vast reach. With over 4.7 billion payment credentials, acceptance from more than 150 million merchants, and over 310 billion processed transactions last year, Visa is unrivaled.
This extensive reach is bolstered by the network effect: merchants prefer to accept Visa, knowing it is the card most consumers want due to its wide acceptance.
Visa operates with high profit margins—averaging 53%—due largely to its ability to expand its network without significant additional investment beyond infrastructure upgrades.
V Profit Margin (Quarterly) data by YCharts
With the rise of digital payments, Visa is a strong long-term investment. The company earns revenue each time a transaction is made on its network, and as the global market shifts towards digital payments, Visa is poised to benefit significantly.
The digital payments sector is projected to grow at a compound annual rate of around 16%, reaching approximately $36.8 trillion in the next four years. As the leading payment processor, Visa stands to capitalize on this growth.
Visa is committed to staying at the forefront of payment technologies and evolving consumer preferences, which bodes well for its future success.
Should You Invest $1,000 in Amazon Right Now?
Before purchasing stock in Amazon, take a moment to consider this:
The Motley Fool Stock Advisor analyst team has identified their picks for the 10 best stocks for investors today… and Amazon did not make the list. The stocks that were selected could deliver substantial returns in the upcoming years.
For instance, when Netflix was on this list on December 17, 2004, if you had invested $1,000 then, you would have $524,747 now!
Similarly, for Nvidia, which was included on April 15, 2005, that same $1,000 investment would now be worth $622,041!
Notably, the Stock Advisor boasts a total average return of 792%, far outpacing the 153% return of the S&P 500.
*Stock Advisor returns as of April 14, 2025
John Mackey, the former CEO of Whole Foods Market, an Amazon subsidiary, serves on The Motley Fool’s board of directors. American Express is an advertising partner for Motley Fool Money. Discover Financial Services and Bank of America are also advertising partners of Motley Fool Money. Stefon Walters has no position in any of the mentioned stocks. The Motley Fool holds positions in and recommends Amazon, Bank of America, Berkshire Hathaway, Mastercard, PayPal, Tesla, Visa, and Walt Disney. The Motley Fool also recommends Discover Financial Services and recommends the following options: long January 2027 $42.50 calls on PayPal and short June 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein belong solely to the author and do not necessarily reflect those of Nasdaq, Inc.
