The Best Warren Buffett Stocks to Buy With $1,000 Right Now
Key Points
There are some attractive stocks right now, after the market's recent turbulence.
American Express has fallen 20% in just two months, but there's a lot to like about the business.
Ally Financial is trading for an extremely cheap valuation despite excellent results.
- 10 stocks we like better than American Express ›
Warren Buffett is no longer CEO of Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB), having formally stepped down from the role at the end of 2025. But many of the stocks in Berkshire's $310 billion portfolio were hand-selected by the legendary investor himself.
After the recent market turbulence, first driven by tariff uncertainty and, more recently, by the conflict in Iran, some of Berkshire's stocks look like attractive places to put money to work. That's especially true in the financial sector, where there are many excellent companies trading for steep discounts right now. Here are two from Berkshire's portfolio that look especially attractive.
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A financial powerhouse at a discount
American Express (NYSE: AXP) is one of Berkshire's largest stock investments, and one that we know for a fact was a Warren Buffett investment. Berkshire has been a major Amex shareholder for decades, and the investment has worked out nicely so far.
The company has done an excellent job of creating a portfolio of premium card products that appeal to consumers and businesses, and has been especially successful in resonating with younger generations. Revenue and earnings both grew by double-digit percentages in 2025, so the business has excellent momentum.
Amex is a closed-loop card issuer, meaning that, unlike Visa (NYSE: V) or Mastercard (NYSE: MA), it acts as both lender and payment processor. The latter creates a high-margin stream of fee income, while the company's status as a lender allows it to benefit from the high interest margins of the credit card industry. However, amid economic uncertainty, Amex has fallen by more than 20% over the past two months, creating an excellent time to take a closer look.
The most successful online bank?
Ally Financial (NYSE: ALLY) isn't quite as well-known as Amex, but it is arguably the most successful online bank in the U.S.
If you aren't familiar, Ally spun out from General Motors (NYSE: GM) in the wake of the financial crisis and is one of the largest auto lenders. It also offers high-yield savings accounts, online checking accounts, and more consumer banking products, and has more than $150 billion in deposits -- the most from an online-only bank.
Ally's business has been performing well, with record consumer auto application volume in 2025 and strong full-year profitability. Plus, asset quality remains strong -- Ally's net charge-off ratio for its auto loan portfolio actually fell by 20 basis points year-over-year.
To be fair, the auto lending business is cyclical, and if we enter a recession or inflation unexpectedly spikes, consumer demand could fall, and defaults rise. But with a valuation of just over seven times forward earnings and an excellent 3.2% dividend yield, Ally's risk-reward dynamics make a lot of sense.
Should you buy stock in American Express right now?
Before you buy stock in American Express, consider this:
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Ally is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Matt Frankel, CFP has positions in Ally Financial, American Express, Berkshire Hathaway, and General Motors. The Motley Fool has positions in and recommends Berkshire Hathaway, Mastercard, and Visa. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.
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