Warren Buffett Invested $30.5 Billion of His Portfolio in 2 Stocks That Could Rise 15% and 23%, According Wall Street Analysts

Warren Buffett gained his reputation as the best investor of all time by beating the market over the long run. It's not a bad idea, then, to look into his (and his team's) stock picks for inspiration. And in Berkshire Hathaway's $257.52 billion portfolio, comprising 41 stocks, several of them boast meaningful upside according to analysts on Wall Street.

So, investing in these companies would be like following stock advice from Warren Buffett and top analysts on The Street. Let's consider two corporations that are on that list: Coca-Cola (NYSE: KO) and Amazon (NASDAQ: AMZN).

Coca-Cola: $28.3 billion invested

Coca-Cola started the year on a strong note, but the company has lagged the market over the past six months. Even so, analysts think the market is not valuing the beverage maker fairly. The company's average price target of $77.49 (according to Yahoo! Finance) implies an upside of about 15% from its current levels. In my view, Wall Street's bullish sentiment is justified, especially considering recent and ongoing developments. First, tariffs threaten to cut into the profits and margins of many corporations.

No company is entirely tariff-proof, but Coca-Cola's business seems more insulated from this potential challenge than many. Despite being a global brand, Coca-Cola has significant manufacturing footprints in each region, which saves the company the trouble of shipping finished products from abroad and allows it to avoid tariffs. Second, some people are increasingly concerned about a coming recession. A prolonged government shutdown is only fueling the fire. Coca-Cola would be a great option in a recession.

The company's products tend to be in relatively high demand even in bad times, leading to steady sales and earnings. Coca-Cola rarely surprises the market. That's precisely what makes it a great pick in a recession: Its consistency.

Then there is Coca-Cola's dividend record. The company is part of the impressive club of Dividend Kings, corporations that have raised their payouts for at least 50 consecutive years. Even in this elite group, Coca-Cola stands out more than most. Its streak of dividend hikes stands at 63. The company's forward dividend yield is a strong 3.1%, higher than the S&P 500's average of 1.2%.

Besides its ability to navigate recessions, Coca-Cola has excellent prospects due to its strong brand name, extensive portfolio of beverages, and constant innovations and new launches that allow it to keep pace with consumer preferences. Coca-Cola should still deliver strong returns over the long run, making it a solid stock to buy right now.

Amazon: $2.19 billion invested

Amazon has underperformed many of its tech peers over the past 10 months. In fact, the company's shares are slightly in the red year to date as of this writing. But the e-commerce giant's price target implies an upside of 23%. Here, too, my view is that Wall Street is right. Amazon is losing ground in the cloud computing market to some of its closest competitors. Fair enough. But it still holds the top spot in that space.

Given the economic moat from switching costs it enjoys in that market and the industry's long-term potential -- CEO Andy Jassy believes we are still in the early innings -- Amazon should continue profiting from its work in cloud computing for a long time.

Further, the company's business is improving elsewhere. Amazon is looking to boost operating profits in its traditionally low-margin e-commerce operations thanks to artificial intelligence-powered initiatives. The company generates far more sales from this unit than its cloud business, but the latter is responsible for most of its operating profits. If Amazon can boost its e-commerce margins even by a few percentage points, it will have a meaningful impact on its bottom line.

The company has other fast-growing business lines, such as advertising. Amazon's struggles this year shouldn't scare away investors. The company's long-term prospects remain bright. And even if it fails to meet Wall Street's estimates in the next year, holding onto its shares through 2030 and beyond should yield substantial returns.

Prosper Junior Bakiny has positions in Amazon and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon and Berkshire Hathaway. The Motley Fool has a disclosure policy.