2 No-Brainer Warren Buffett Stocks to Buy Right Now

Source Motley_fool

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.

Two people looking at charts.

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?

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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.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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