The Best Buffett Stocks to Buy Right Now for $1,000

With a net worth of nearly US$140 billion, Warren Buffett seems to be in the limelight. He has been in the business of Berkshire Hathaway)The investment wisdom demonstrated in the process envoy He became the darling of the industry.

Ordinary investors keep a close eye on this " The Oracle of Omaha"In of its portfolioIn addition, the performance of the Government of the Hong Kong Special Administrative Region (HKSAR) is also very good.Not surprisingly. (modal particle intensifying preceding clause) The company's stock market is a very important part of the company's business. Among the dozens of stocks owned by this conglomerate, there must be some potential investment opportunities.

In fact, I think these are two of Warren Buffett's best stocks, and you should buy them for $1,000 right now.

Amazon: A heavyweight e-commerce company with multiple growth drivers

The first stock on Berkshire's list that you should be looking at in-Amazon (NASDAQ resonance code: AMZN)none other than The e-commerce giant accounts for only 0.5% of Buffett's portfolio. The e-commerce giant represents only 0.5% of Warren Buffett's portfolio, but has many favorable attributes.

In terms of online shopping, no other company can match Amazon. According to Statista data, nearly 40% e-commerce purchases in the United States are done through Amazon. Amazon has a huge range of services, especially its rich product range and large logistics network, can better serve customers. Amazon will continue to benefit from the expanding share of online shopping in retail sales.

But there are other engines of growth in the business that could work in its favor. Amazon Web Services (AWS), the industry's leading cloud computing business unit, is the center of investor attention. It has maintained double-digit revenue growth, with operating margins hovering around 30%. With People.For Artificial Intelligenceand other Back-Box infrastructure services(used form a nominal expression)Interestsgraduallythick, AWS will be in strong demand for the next decade and beyond.

Investors will certainly appreciate Gwen's attention to efficiency. Continued cost reductions across the board have boosted Amazon's profitability, and this positive trend is set to continue. According to Wall Street analysts' consensus estimates, earnings per share (EPS) will grow at an annualized rate of 34% over the next three years.

Since the beginning of 2023 (as of April 10), the stock price has risen 1,21%. but the stock doesn't seem expensive. Investors can buy the stock at a 3.4 price-to-sales ratio. This is in line with Amazon's five-year average P/E ratio. Buying $500 worth of shares can boost your portfolio over the next few years.

American Express Benefits from Network Instances of High 耑 Credit Card Issuers

The second Warren Buffett stock that investors should buy is American Express (NYSE: AXP)The company's market capitalization is less than one-tenth that of Amazon. Although the company's market capitalization is less than one-tenth that of Amazon, it makes up a much larger portion of Berkshire's portfolio, accounting for 9% of all the company's holdings.

You might think that in the high interest rate environment we're in - an environment characterized by inflationary pressures - American Express' business would slow down significantly. But that's not the case.

In 2023, American Express grew both revenue and diluted EPS by 14%. gGu is forecasting another double-digit growth this year.

This strong performance of the basic noodles shows the position of American Express in this very competitive industry. The company's High B耑 brand attracts affluent customers who are willing to pay a premium for an American Express credit card. Compared to its peers, American Express has a lower default rate and spends more per card.

American Express is unique in that it also operates its own closed-loop payment system. As a result, the business benefits from Networking. Merchants want to join the Express network because of the potential spending power of their cardholders. Customers want the Express Card because it is accepted virtually everywhere, not to mention an impressive array of offers, rewards and carries.

Investors have the opportunity to acquire this competitive financial services company at 2.7 times sales. Like Amazon, this valuation is in line with the stock's trailing five-year average. A $500 investment in Bubbles American Express seems like a smart move.

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

Before buying Amazon stock, consider the following:

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*Stock Advisory Rates as of April 8, 2024

John Mackey, former chief executive officer 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 The Ascent, a division of The Motley Fool. Neil Patel and his clients have no positions in any of the stocks mentioned above. the Motley Fool has positions in Amazon and Berkshire Hathaway and recommends both companies. the Motley Fool has a disclosure policy.

The Best Buffett Stocks to Buy Now for $1,000 was originally published by The Motley Fool.