One of the things that makes Warren Buffett a widely admired investor is his willingness to share how he does it. Buffett has been a student of the market since his first stock purchase more than 80 years ago. He shares mistakes made and lessons learned every year in his letter to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders and at the annual shareholder meeting.

Investors also gain insights into his and his team's investments through Securities and Exchange Commission filings disclosing Berkshire's portfolio changes.

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While Buffett has been a net seller of stocks the past few years, he still oversees a portfolio worth $281 billion as of this writing. And nearly half of that is invested in just three exceptional stocks.

Image source: The Motley Fool.

1. Apple (22% of portfolio value)

Buffett first bought shares of Apple (NASDAQ: AAPL) in 2016 when it traded at a valuation too low to ignore. Buffett saw the powerful moat created by the iPhone, locking hundreds of millions of consumers into the Apple ecosystem, and Berkshire Hathaway poured tens of billions of dollars into the stock duringthe next couple of years. At one point, Apple accounted for more than half of Berkshire's marketable equity portfolio. After selling a significant chunk in 2024, it now accounts for 22% of the portfolio.

As mentioned, Apple benefits from a wide competitive moat thanks to the success of its iPhone. Apple's iPhone sales topped $200 billion in each of the past three years, and sales are on track to grow in 2025. The iPhone is the center of Apple's growing ecosystem of devices and services, helping the rest of the business grow.

The services segment is a particularly bright spot for Apple, currently boasting a $100 billion annual run rate. Apple's services are significantly higher margin sources of revenue than its devices. As one of the fastest-growing segments of the business, Apple's overall profit margins are expanding as a result. When combined with Apple's huge share repurchase program, Apple is capable of producing meaningful growth in earnings per share.

Apple faces some headwinds, though. First of all, it's in the crosshairs of the tariffs planned by the Trump administration. Its supply chain relies heavily on China and Taiwan. As a result, its costs could increase and it may have to pass those expenses on to consumers. That could dent its device sales.

Additionally, Apple has been slow to develop competitive artificial intelligence services. It risks losing customers looking for more AI integrated capabilities from their phones and services. Apple customers tend to be locked into the ecosystem, which helps minimize that risk.

Apple stock has fallen from its late-2024 all-time high, trading more than 20% below its peak. At its current price, the stock's valuation is about 28 times forward earnings. While Apple isn't the fast grower it once was, it holds a lot of potential to unlock value with AI services in the future while its iPhone and services businesses remain rock solid today. As such, it looks like a fair price to pay for the tech giant.

2. American Express (16%)

American Express (NYSE: AXP) is a longtime holding for Buffett. He put about $1.3 billion into the stock in the 1990s and hasn't touched it since. Today, those shares are worth nearly $45 billion.

Amex separates itself from other credit card companies by operating as both the card issuer and as the payments network. Most issuing banks partner with Visa or Mastercard to remit payments to vendors from customer accounts. Doing both allows Amex to exercise more control over the business and capture more of the economics of card payments. To that end, it's done extremely well, commanding higher interchange fees from businesses by attracting affluent households to its high-fee products.

Amex has successfully raised the fees on its cards during the past few years. It reported an 18% year-over-year increase in net card fees during the first quarter, while its customers spent just 6% more compared to the first quarter of 2024. That said, the fees collected from processing payments is still its biggest source of revenue.

During the past few years, Amex has shifted strategies to offer more credit products to customers. Its charge cards historically required customers to pay their full balance each month, but Amex now lets customers pay over time with interest. Its interest income grew quickly from 2021 through 2024, but slowed to just 11% growth in the first quarter. That's mostly due to the law of large numbers, as interest income now accounts for nearly a quarter of its revenue.

Amex may be a bit more insulated from an economic slowdown compared to other banks and payment processors due to its focus on high-income households and lesser focus on interest income. As such, it's less susceptible to loan defaults. Amex trades for a significant premium relative to its most comparable competitor, Capital One Financial, but it arguably deserves a premium due to the strength of its customer base, its scale, and its ability to boost revenue through fee increases and more interest-bearing services.

3. Coca-Cola (10%)

Coca-Cola (NYSE: KO) is another stock Buffett bought more than 30 years ago and has no plans to sell anytime soon. His original $1.3 billion investment in the company (yes, the same amount he invested in Amex) is now worth about $29 billion. Not to mention, Coke's paid out more and more each year in dividends. Berkshire shareholders will collect roughly $816 million in dividends from Coca-Cola this year.

The appeal of the company is two-fold.

First of all, it has one of the strongest global brands in history. The red Coca-Cola logo is known the world over transliterated into practically every language known to man. Its brand strength extends well beyond its flagship product, though, to include top-selling carbonated drinks, water, juice, and sports drinks. That gives it considerable pricing power, which it has used to help offset inflation in recent years.

The second factor is its huge scale, which has made it cost-effective to create localized supply chains for producing and packaging its products. That's come to the fore in recent months as global trade policies put pressure on other global companies. Coca-Cola has managed to avoid the impact of tariffs more than its competitors, enabling it to keep its costs down. During its first-quarter earnings call, management warned it's not immune to global trade dynamics, but it's better positioned than most businesses.

Both of those advantages helped Coke produce strong first-quarter results while reaffirming its forecast for the full year. Revenue grew 6% and earnings per share grew 1%. Those numbers might not seem impressive, but they look great compared to Coke's biggest rival PepsiCo, which saw revenue and earnings per share shrink in the first quarter.

Coke's relative strength hasn't gone unnoticed. The stock price has climbed 15% year to date as of this writing, and the shares trade at 24 times forward earnings. That's higher than its historic average, but not outrageously so. With its strong position in the current economic environment, it might be worth paying a premium for Coca-Cola stock. You'll also collect a nice 2.8% dividend yield at the current price.

Should you invest $1,000 in Berkshire Hathaway right now?

Before you buy stock in Berkshire Hathaway, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $828,224!*

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See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

American Express is an advertising partner of Motley Fool Money. Adam Levy has positions in Apple, Mastercard, and Visa. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool recommends Capital One Financial. The Motley Fool has a disclosure policy.

American Express (NYSE: AXP) might not seem like a recession-resistant business, but you might be surprised. While it certainly has some vulnerability to a bad economy, Amex also has an affluent clientele and excellent asset quality that should allow the business to weather the storm better than its peers.

*Stock prices used were the morning prices of April 22, 2025. The video was published on April 23, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Should you invest $1,000 in American Express right now?

Before you buy stock in American Express, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $566,035!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $629,519!*

Now, it’s worth noting Stock Advisor’s total average return is 829% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

American Express is an advertising partner of Motley Fool Money. Matt Frankel has positions in American Express. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Stock markets got over their case of the Mondays really quick this week, and after regaining all their Monday losses on Tuesday, are roaring even higher as Wednesday gets off the ground.

Financial stocks are doing particularly well this morning. As of 10:20 a.m. ET, shares of Bank of America (NYSE: BAC) are gaining a respectable 2.8%, while JPMorgan Chase (NYSE: JPM) is doing even better with a 3.6% rise, and American Express (NYSE: AXP) is doing best of all -- up 5.4%.

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The American stock market's big news day

What's behind the optimism? President Donald Trump, of course.

After spooking markets earlier in the week with threats to oust Federal Reserve Chairman Jerome Powell, Trump ratcheted back the rhetoric this morning, even going so far as to assure investors he has "no intention" of firing Powell (or at least not until the end of his term of office next May). This promise, for as long as it lasts, may be of particular reassurance to financial investors as they're more closely tied to moves by the Fed than anyone else, and were presumably more worried than others about what political pressure on the Fed might do to interest rate policy.

Meanwhile, in tariffs news, the president held out the prospect of falling tariffs on China, which holds the potential to both reduce strain on the American economy and -- potentially -- short-circuit an incipient global trade war that seemed all but certain to happen as recently as Monday. Both prospects diminish the chance of the U.S. falling into recession this year, and that's music to investors' ears.

Referring to tariffs on Chinese imports that have reached levels capable of potentially ending trade between the two countries entirely, the president opined that once negotiations run their course, tariffs on Chinese goods will probably come down "substantially." Forget 145% tariffs. They soon "won't be anywhere near that high."

Image source: Getty Images.

Is it time to buy bank stocks?

Worries over tariff policy, and the recession risk they raise, have been especially concerning to the banking and credit card industries, reports The Wall Street Journal. As recently as this morning, that paper reported on how credit card companies are bracing for an economic downturn in which consumers stop spending because imported goods have become simply too expensive to buy.

All three of the banks named above were cited in the story, with Amex in particular warning that "consumers are holding off on nonessential splurges" and JPMorgan said to be ratcheting up reserves against an expected recession. The good news is that BofA says consumers are, for now, "still solidly in the game," however. And if Trump ends up calling off his trade war in time to avert a recession, things could turn out as well as investors today seem to feel they will.

Potentially, this could all work out very well indeed for investors brave enough to roll the dice at today's better-than-Monday, but still depressed, valuations. American Express stock is now trading for an unchallenging 17.6 times trailing earnings, while Bank of America and JPMorgan stocks look downright cheap at 11.4 and 11.6 times earnings, respectively.

Of the three, I personally prefer BofA and JPMorgan over Amex, though. Not only are their valuations more attractive, but JPMorgan also pays a 2.4% dividend yield, and BofA 2.7% -- both twice the dividend yield on Amex stock. If you're in the mood to do some bank stock shopping today, I'd start with those two.

Should you invest $1,000 in JPMorgan Chase right now?

Before you buy stock in JPMorgan Chase, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and JPMorgan Chase wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

Now, it’s worth noting Stock Advisor’s total average return is 811% — a market-crushing outperformance compared to 153% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

American Express is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America and JPMorgan Chase. The Motley Fool has a disclosure policy.

If you've got a pile of cash burning a hole in your pocket, consider putting it to work in the stock market. Long-term investing is a great way to build wealth, and few know this better than investing legend Warren Buffett, who has turned his once-modest holding company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), into a $1.1 trillion equity behemoth.

Below I'll discuss why Chinese electric-vehicle (EV) maker BYD (OTC: BYDDY) -- as well as shares in Berkshire Hathaway itself -- could be great buys right now.

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BYD

Since its 2003 founding in Shenzhen, China, BYD has been riding the wave of China's industrial miracle. It starting as a battery manufacturing and electronics company before pivoting to electric vehicles a few years later. Warren Buffett began buying shares in 2008 and now owns a substantial $2.5 billion worth of BYD equity, representing about 1% of Berkshire's total portfolio.

It's easy to see why he likes the company. Buffett tends to favor businesses with deep economic moats, which refers to the competitive advantage they have over industry rivals. In BYD's case, the moat is the company's vertical integration as it manufactures its own batteries at scale, enabling it to pass on cost savings to consumers.

However, BYD isn't just about low prices. The company has started to emerge as a technological leader.

In March, it unveiled a new technology capable of charging EVs in just five minutes, providing up to 249 miles of range. If this makes it into mass production, it could significantly close the convenience gap between electric cars and their gasoline-powered counterparts.

BYD's valuation is also too good to ignore. With a forward price-to-earnings ratio (P/E) of just 19.5, the shares are significantly cheaper than rival Tesla, which trade at a forward P/E of 84. Fourth-quarter profit jumped by an impressive 73% year over year to $2.1 billion.

Berkshire Hathaway

Instead of buying individual stocks, some investors may want to bet on the entire Berkshire portfolio. This move would enable greater diversification across various industries while leveraging Warren Buffett's holistic strategy and market-beating instincts.

Buffett has famously stated, "Never bet against America," referencing the country's tremendous business potential, even in the face of temporary setbacks. With multibillion-dollar positions in leading U.S. companies like Apple, Coca-Cola, and American Express, the Oracle of Omaha puts his money where his mouth is. And in terms of performance, Berkshire Hathaway has consistently beaten the S&P 500.

BRK.A Total Return Level data by YCharts.

Berkshire's edge may come from its ability to respond to changes in the macroeconomic landscape. In 2024, the holding company began raising eyebrows by selling stock and not reinvesting, ending the year with $334.2 billion in cash. Some analysts think this move may have been in anticipation of the tariff-led sell-off this year. Berkshire Hathaway is in a position to scoop up quality stocks for cheap when the dust settles.

Investors shouldn't expect Berkshire Hathaway to repeat the explosive growth it has experienced during past decades. The larger a portfolio is, the more challenging it becomes to grow. That said, the legendary holding company looks fully capable of maintaining its market-beating success.

Which stock is best for you?

BYD and Berkshire Hathaway are both excellent choices based on Warren Buffett's successful investing strategy. That said, investors who prioritize market-trouncing growth should look to BYD, due to its huge opportunity to scale its EV business globally. Berkshire Hathaway is another excellent choice, but its size and diversification make its performance more closely align with the S&P 500 average.

Should you invest $1,000 in BYD Company right now?

Before you buy stock in BYD Company, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and BYD Company wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $532,771!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $593,970!*

Now, it’s worth noting Stock Advisor’s total average return is 781% — a market-crushing outperformance compared to 149% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

American Express is an advertising partner of Motley Fool Money. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy.

Shares of Apple (NASDAQ: AAPL) are currently 26% below their peak from December last year (as of April 10), a drop that has been spurred by ongoing tariff announcements. As of this writing, there is a huge 145% tariff that's implemented on goods leaving China for the U.S. If this remains in place, it could harm Apple, because 80% of its production is still based in China, according to estimates from Evercore.

For consumers, the result could be much higher prices. If the increased costs are eaten by Apple, on the other hand, its profitability will definitely take a hit. There remains a lot of uncertainty about how things will play out.

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Despite the potential effects, which are commanding all the attention these days, Apple has proven to be successful in another area that highlights growing diversification in the business model. Here's what investors need to know.

Apple's push into financial services

In fiscal 2024 (ended Sept. 28, 2024), Apple generated $391 billion in revenue, of which 75% came from the sale of products. This includes its popular iPhone, Mac, and iPad lineups.

But the company's services division is an up-and-coming money-maker, growing revenue 13% in the latest fiscal year, much faster than the overall business. It represents the other 25% of Apple's total sales.

Within services, Apple is making a bigger push into the financial services realm, where it appears to have developed a strong foothold.

In 2014, the company launched Apple Pay, its digital wallet solution that lets users connect credit and debit cards to use for transactions in-store and online. More than 90% of retailers in the U.S. accept Apple Pay, which has more than 600 million global users and handles trillions of dollars in payment volume. This is undoubtedly becoming a widely used checkout option.

Apple Card was launched in 2019. This is a credit card that gives consumers up to 3% cash back with no fees whatsoever. Apple partnered with Goldman Sachs to handle the program. The credit card portfolio has 12 million customers (data from early 2024) and $20 billion in balances.

Valuable for partners

It was reported that Visa offered the tech titan a cool $100 million to end its relationship with Mastercard, the current card network for Apple Card. American Express is also in the mix. What's more, issuers like JPMorgan Chase, Capital One, Synchrony Financial, and others are reaching out to Goldman Sachs, offering to take over the $20 billion in balances and to handle the program.

It makes sense why these heavyweights in the financial services industry would be trying so hard to be Apple's partner. Apple generates enormous amounts of revenue, and its customers are generally known to be more affluent than average. Consequently, there is a lot of buying power here, which can lead to revenue opportunities for banks and payment networks.

Apple might be facing some headaches due to tariffs and how they can affect its device sales. But its payment and credit card offerings continue to shine brightly. Partners are jockeying for position.

Should you buy Apple stock on the dip?

This gets to the discussion of whether or not Apple shares are a smart buy right now, especially since they are 26% below their record high. The price-to-earnings ratio is better than it was in December -- it's now at a 30.2 multiple.

However, I'm not convinced the tech stock can produce a return over the next five years that can outperform the broader market. Not only is the valuation still elevated, Apple's growth prospects aren't that robust. Plus, there is the unfortunate overhang of the tariff situation.

This is a fantastic business. But investors should pass on buying shares.

Should you invest $1,000 in Apple right now?

Before you buy stock in Apple, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

American Express is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Synchrony Financial is an advertising partner of Motley Fool Money. Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Goldman Sachs Group, JPMorgan Chase, Mastercard, and Visa. The Motley Fool has a disclosure policy.

Warren Buffett has built a fortune in the stock market by playing the long game. Over the last 59 years, his investing skills guided Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to an incredible return of more than 5,000,000%.

When the stock market falls, Buffett's top holdings are a great place to find quality stocks that you can be confident will bounce back. Here are two of his largest investments that are no-brainer buys right now.

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1. Apple

Apple (NASDAQ: AAPL) is Berkshire Hathaway's largest investment, with 300 million shares at the end of 2024. The iPhone maker is ranked as the most valuable brand in the world by Brand Finance. The company's robust profits earned from its products, on top of growing revenue from services, make it a solid investment for the long term.

Apple is poised to see more growth as it releases Apple Intelligence across more countries. It just rolled out these artificial intelligence (AI) features to iPhone and iPad users in Europe. In the last earnings report, CEO Tim Cook noted that iPhone 16 performance has been stronger in markets where Apple Intelligence is available.

That feature is a strong catalyst for growth. It promises to drive more upgrades and potentially convert customers of rival brands to switch to the iPhone, especially as Apple continues to improve its capabilities. The active installed base of its devices continues to hit record highs, which indicates growing brand appeal.

More devices in people's hands spell more opportunities to increase Apple's lucrative services segment. That division's revenue grew 14% year over year in the December-ending quarter and now comprises 21% of the company's total.

Buffett recognizes that Apple has tremendous brand power, which it uses to generate high margins from product sales. The company ended the last quarter with $141 billion of cash and marketable securities. It produced $96 billion of net profit over the last year and returned more than $15 billion to shareholders in dividends. It is printing cash like there's no tomorrow.

While Apple is not a high-growth business, it can raise the value of your investment. Analysts expect earnings to increase at an annualized rate of 10% over the next several years. A powerful brand and loyal customer base make it a solid long-term holding.

2. Berkshire Hathaway

Buffett's masterpiece is one of the best stocks you can hold in your retirement account. He continues to be the largest shareholder, with 38% of the Class A shares.

Berkshire owns dozens of businesses, along with a stock portfolio that was worth $271 billion at the end of 2024. The conglomerate's shares have run circles around the S&P 500 over the last five years, up 161% compared to the index's return of 88% at the time of this writing.

The stock has continued to outperform the broader market year to date. Most investors realize that a market sell-off can be valuable for Buffett to find opportunities to put more cash to work at attractive valuations, and therefore add more profitable revenue streams for Berkshire's business.

It entered the year with $331 billion in cash and short-term investments, providing plenty of firepower for Buffett to use if an opportunity presents itself. Berkshire's cash and stock holdings represent close to half of its $1.1 trillion market cap, which indicates solid value underpinning the stock right now.

That value is further supported by $47 billion of operating earnings from Berkshire's businesses last year. These include the Burlington Northern Santa Fe railroad; See's Candies; GEICO; Duracell; and one of the largest energy companies in the U.S., Berkshire Hathaway Energy. Total operating earnings are up 72% over the last three years.

Berkshire Hathaway is a no-brainer investment. Its growing earnings and large stakes in Apple, American Express, Coca-Cola, and several other outstanding businesses appear undervalued right now, making the stock a great buy.

Should you invest $1,000 in Apple right now?

Before you buy stock in Apple, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

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

With stock prices all over the map right now, it's difficult to determine which companies might be good to invest in. When things are really uncertain, it's a good time to seek guidance from those who've weathered plenty of challenging times.

There's probably no one better in the investing world to turn to during these times than Warren Buffett. The billionaire investor and CEO of Berkshire Hathaway has amassed a $250 billion portfolio of stocks, and many of his picks have stood the test of time.

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If you're in the market for solid companies that could be great long-term picks, here are two no-brainer Buffett stocks to buy and hold.

Image source: Getty Images.

1. Amazon: The e-commerce and cloud computing leader

Some investors are currently skeptical about Amazon (NASDAQ: AMZN). Many of the company's e-commerce sellers are highly dependent on goods from China -- which is currently in a trade war with the U.S. -- and any economic slowdown could potentially slow Amazon's sales.

However, while those concerns aren't unfounded, they might also be a bit overblown. It's important to remember that Amazon holds 40% of the e-commerce market share in the U.S., while Walmart is far behind with just 7%. This dominance means that U.S. consumers are unlikely to drop Amazon and look elsewhere for their purchases, no matter what happens with the economy.

Similarly, any slowdown from tariff pressure will be felt across the entire retail sector. Walmart sells a lot of goods made internationally. Amazon isn't especially vulnerable, and when tariffs eventually subside (even if that takes a while), the company will still retain its leading e-commerce position.

Finally, as important as e-commerce is to Amazon, the company's cloud computing business, Amazon Web Services (AWS), is the real moneymaker. AWS accounted for 58% of the company's operating income last year, even though it made up just 17% of its sales.

AWS is the leading cloud computing service, with a 30% market share compared to Microsoft's 21%. Artificial intelligence is accelerating cloud sales across the globe and will likely continue to do so for years to come. Goldman Sachs estimates AI cloud revenue will reach $2 trillion in five years.

Even if the U.S. economy hits some rough patches soon, Amazon's strong position in e-commerce and its lead in cloud computing should help the company continue growing. That doesn't mean its stock won't dip in the short term, but as a five-year investment or longer, Amazon is still in good shape. As of the end of 2024, Berkshire Hathaway held 10 million shares of Amazon.

2. American Express: A classic Buffett stock that's still growing fast

Like Amazon, American Express (NYSE: AXP) won't be immune to a potential economic slowdown if one materializes. Americans' credit card debt is already at record highs, reaching $1.21 trillion at the end of 2024. Financial pressures could cause some cardholders to scale back on things like vacations and could cause some difficulties in making payments. Neither is good for the economy or American Express.

But it's worth remembering that most economic slowdowns are often short-lived -- recessions last 17 months on average -- and any pullback on spending could be temporary. American Express is still growing quickly and is in a good position to continue doing so.

The company's revenue rose 9% to $65.9 billion, and earnings per share (EPS) popped 25% to $14.01 in 2024. Management expects EPS to jump 14% and for sales to climb 9% this year, at the midpoint of guidance.

Part of the company's strength comes from the 13 million new cardholders it added last year, 70% of which are using American Express' "fee-paying products" that charge annual fees.

American Express has been a longtime holding of Buffett's, with the famed investor buying shares for the first time in 1991. Even as Buffett has trimmed other positions, American Express remains Berkshire's second-largest holding.

It's also worth noting that American Express' price-to-earnings multiple is currently 16.7, down from 20 this time last year, which means you can pick up shares at a relative discount right now.

I understand the hesitation some investors might have in buying a credit card stock ahead of a potentially difficult economic time. But a few years from now, it's more likely than not that owning this solid player in the credit card space was a good stock to add to your portfolio.

A key piece of Buffett's investing advice

Buffett once quipped, "​​We don't have to be smarter than the rest. We have to be more disciplined than the rest." Those are timely words of wisdom as investors respond to market turmoil and consider picking up shares of some of Buffett's stocks.

Should you invest $1,000 in Amazon right now?

Before you buy stock in Amazon, consider this:

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*Stock Advisor returns as of April 10, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. American Express is an advertising partner of Motley Fool Money. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, Goldman Sachs Group, Microsoft, and Walmart. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

The stock market has crashed. In just the last five trading days, the Nasdaq-100 index is down more than 10% and has officially entered a bear market, meaning it is down at least 20% from its recent high. That has created some panic among a subset of investors. Panic can be infectious, but you have to stay rational when Wall Street is being irrational. Now is not the time to start trading manically. Extend your time horizon and keep laser-focused on your long-term goals.

But what should you buy during this market crash? If you have cash sitting around, here are three stocks to buy during this market dip and hold for the ultra-long term.

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 »

Coupang's strong position in South Korea

If you're worried about tariffs, then Coupang (NYSE: CPNG) is a stock for you. Even though the company is listed in the United States, it does not operate in the country. The e-commerce marketplace is centered on South Korea, with some small exposure to Taiwan as well. South Korea just got hit with a tariff on exports to the United States, but that does not impact Coupang importing goods from other countries to South Korea. Sure, Coupang could be affected if the South Korean economy goes into a recession, but it is not directly hurt by tariffs.

The company looks strong enough to get through any economic volatility in South Korea that occurs, too. At the end of 2024, the company had close to $6 billion in cash on its balance sheet and minimal debt. It generated $1 billion of free cash flow last year. Gross profit -- a better top-line figure than revenue due to how Coupang does its accounting -- grew 29% year over year in the fourth quarter of 2024 when you exclude one-time gains and growth from acquisitions. This is much faster than the entire retail sector in South Korea, indicating that Coupang can grow simply through market share gains even if the broader economy slows down in Korea.

Coupang generated $30 billion in revenue last year. Over the long term, management believes it can achieve a 10% profit margin once the company stops reinvesting so aggressively for growth. That would be $3 billion in earnings at today's revenue level that can grow in the years to come. Today, Coupang stock trades at a market cap of around $36 billion, or just over 10 times these look-through earnings projections. That makes the stock dirt cheap for those who plan to hold for the long haul.

Take the long view with Amazon

A stock right in the line of fire with these tariffs is Amazon (NASDAQ: AMZN). As the largest e-commerce marketplace in the United States, the company sources a lot of supply from Asian nations now getting large tariffs slapped on exports. While this could hurt Amazon's financials in 2025, the company is set up to do just fine over the long term.

Most of Amazon's business is not selling online goods itself, but facilitating transactions for third-party sellers. This will help it push back against tariff volatility (although it may hurt a lot of its existing sellers). If a lot of Amazon sellers go bankrupt or have to rapidly switch supply chains, that is not a cost Amazon has to shoulder. Most of its investment has been in the United States, as opposed to other technology companies like Apple, which has most of its fixed costs in China and other Asian nations.

Amazon also makes a lot of money from advertising, subscription services, and the cloud computing division Amazon Web Services (AWS). AWS should still grow this year due to the boom in demand for artificial intelligence (AI) services. Advertising may see a slowdown if the broad economy tumbles, but over the long term it should remain a highly profitable division for Amazon.

The stock has tumbled to a market cap of $1.87 trillion and now has a forward price-to-earnings ratio (P/E) under 28, one of its lowest figures ever. Even if the numbers look bad in 2025, now looks like a fine time to buy Amazon stock for your portfolio.

Data by YCharts.

American Express and a resilient customer base

Financials, banks, and lenders can be very procyclical with the economic cycle. This means that when the economy is doing well, loans perform well and earnings are high. But when a recession occurs, rising loss rates and bankruptcies send earnings down rapidly. American Express (NYSE: AXP) gets tossed in this group as one of the largest credit card issuers in the United States. However, it is much more equipped to handle a recession than its peers.

American Express caters to a more affluent customer base with high credit scores. Even going through the elevated-inflation period of 2022 and 2023, the company's loss rates remained around 2%, which is around or below its pre-pandemic figures. A recession will likely cause these loss rates to increase, but the company is well-capitalized to deal with these temporary issues. Using history as a guide, it will do much better than other banks and lenders during a recession.

As of this writing, American Express stock is down almost 30% from all-time highs. I believe this is an example of the baby getting thrown out with the bath water. With the stock at a forward P/E of 15, you can buy American Express with confidence that it will perform well for your portfolio over the long haul.

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 $244,570!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $35,715!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $461,558!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Continue »

*Stock Advisor returns as of April 5, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. American Express is an advertising partner of Motley Fool Money. Brett Schafer has positions in Amazon and Coupang. The Motley Fool has positions in and recommends Amazon and Apple. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy.