Warren Buffett’s investment choices have always drawn attention, and for good reason. His knack for picking long-term winners has made Berkshire Hathaway’s portfolio one of the most-watched in the world. Right now, three of Buffett’s most prominent holdings—Amazon, American Express, and Berkshire Hathaway itself—are making a compelling case for investors with $1,000 ready to invest.
Amazon: A Giant on Sale
Amazon (NASDAQ: AMZN) might not have had a stellar start to 2025, but don’t let its recent dip fool you. After reporting softer-than-expected guidance for the first quarter, the stock took a 10% slide from its recent highs, settling around $222.88. However, this isn’t the full story—far from it.
Despite recent setbacks, Amazon’s e-commerce business is still firing on all cylinders. Sales jumped 10% year-over-year during the crucial holiday quarter, and there’s plenty of room to grow. According to the U.S. Census Bureau, e-commerce accounts for just 16% of total retail sales. For a company that dwarfs its next 10 competitors combined, that’s a market still ripe with opportunities.
But the real goldmine for Amazon isn’t just retail. It’s AWS (Amazon Web Services), its cloud computing arm. Though it accounts for just 15% of total revenue, AWS generates roughly half of Amazon’s operating income. That’s a staggering figure that highlights the high-margin nature of cloud services.
Here’s why investors are paying attention:
- AWS is growing at nearly double the rate of Amazon’s retail business.
- Cloud computing is expected to triple by 2032, creating enormous potential for revenue growth.
- CEO Andy Jassy has sharpened efficiency, setting the stage for future profit expansion.
For those with a long-term mindset, Amazon’s current valuation offers an attractive entry point into both the world’s largest online retailer and a booming cloud giant.
American Express: Credit Card King With Staying Power
American Express (NYSE: AXP) might not make headlines as often as tech giants, but it’s been a cornerstone of Buffett’s portfolio for years—and for good reason. Priced at $303.86 as of February 20, 2025, AXP’s performance shows why it remains a top-tier pick for steady returns.
In a time when fears of weakened consumer spending loom large, Amex has proved resilient. The company grew its loan portfolio by 10% year-over-year last quarter, signaling robust demand for its credit services. More importantly, it’s doing so without taking on too much risk.
A closer look at the numbers reveals just how stable Amex is compared to its competitors:
- 1.9% charge-off rate on loans and receivables.
- Capital One, by comparison, carries a charge-off rate three times higher.
What makes American Express stand out is its focus on the “mass-affluent”—wealthier customers who tend to spend more and default less. Amex doesn’t just earn money from swipe fees like traditional credit cards; it also brings in substantial income from interest payments.
Looking ahead, Amex could benefit from several favorable economic trends:
- Falling interest rates, which reduce borrowing costs.
- Potential corporate tax cuts.
- Relaxed financial regulations.
These factors could boost profits and keep Amex firmly planted as one of Buffett’s smartest long-term investments.
Berkshire Hathaway: Buffett’s Best Bet Might Be Himself
Here’s an idea Buffett himself might appreciate—why not just invest in Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B)? After all, Berkshire is home to a collection of high-performing businesses, and it holds stakes in dozens of top-tier companies.
What makes Berkshire a standout right now isn’t just its diverse portfolio or consistent profits—it’s the sheer amount of cash the company is sitting on. With over $325 billion in reserves (and likely even more by now), Berkshire has an immense amount of financial firepower.
This cash stockpile serves two purposes:
- Interest income: Berkshire’s reserves are generating $10 billion+ annually in interest.
- Flexibility: It gives Buffett & Co. the freedom to make big moves during market downturns.
With ongoing economic uncertainty and a volatile stock market, that kind of cushion isn’t just comforting—it’s a serious advantage. Investors who want exposure to Buffett’s investment genius without picking individual stocks might find Berkshire Hathaway itself to be the safest and smartest play.
How Do These Stocks Compare?
If you’re wondering which of these Buffett-backed companies offers the best bang for your buck, here’s a quick side-by-side comparison:
| Company | Current Price | Market Cap | Key Strength | Dividend Yield |
|---|---|---|---|---|
| Amazon (AMZN) | $222.88 | $2.4T | Dominance in e-commerce & AWS | N/A |
| American Express (AXP) | $303.86 | $213B | Low-risk credit portfolio | 0.92% |
| Berkshire Hathaway (BRK.B) | $357.12 | $780B | Diverse investments & cash reserves | N/A |
Final Thoughts: Which Stock Should You Choose?
If you’ve got $1,000 to invest right now, all three of these Buffett-approved companies offer solid potential for growth. Here’s a quick way to break it down:
- Choose Amazon if you want exposure to tech and the future of cloud computing.
- Pick American Express for steady, reliable growth from a top-tier financial institution.
- Go for Berkshire Hathaway if you want diversification and the confidence of Buffett’s direct investment strategy.
There’s no telling how the market will perform in the short term, but betting on Buffett’s favorite stocks has historically been a long-term win.
