2 No-Brainer Warren Buffett Stocks to Buy Now

Source The Motley Fool

Warren Buffett plans to retire this year after delivering a return of over 5,000,000% to long-term investors through his holding company Berkshire Hathaway. With a market capitalization of $1.12 trillion, Berkshire is already quite large, so investors shouldn't expect a repeat of the previous six decades of growth.

That said, the portfolio is still a great way to look for inspiration in the market. Let's discuss why two Berkshire-backed stocks, Amazon (NASDAQ: AMZN) and BYD (OTC: BYDD.F), could make great buys.

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 »

Amazon

Even the best investors make mistakes. Warren Buffett has admitted that he was "too dumb" to see Amazon's potential earlier. But he finally took the plunge in early 2019, and now Berkshire Hathaway owns a whopping $1.89 billion of the company's shares, representing 0.7% of its portfolio.

It's easy to see why Buffett likes Amazon. The company's economic moat is as deep as they come. Its size creates a positive feedback loop: the vast number of buyers attracts more sellers, which leads to more competition and product variety. The company can also unlock economies of scale in its logistics and distribution networks, passing on these savings and efficiencies to consumers.

While Amazon could face some challenges from the Trump administration's new tariffs on imported goods, its 3rd party business model can shift the impact mostly to sellers on the marketplace.

Amazon's diversification is another long-term asset. The company's cloud computing division, Amazon Web Services (AWS), represents around half of operating income, reducing its exposure to consumer spending and allowing it to benefit from long-term growth drivers like generative artificial intelligence (AI). Amazon's AI strategy focuses on the enterprise side of the industry, helping other companies run and train their models.

BYD

With a $2.68 billion stake, Berkshire Hathaway is one of BYD's highest-profile backers -- first betting on the Chinese EV maker in 2008. Like Amazon, BYD is an excellent example of how forging a deep and sustainable economic moat can be key to a company's success.

BYD's edge comes from vertical integration. The company started its life as a battery maker and has leveraged this expertise to control a vast amount of its supply chain -- not only making its own batteries, but also having rights to lithium mines and refining capacity needed to create them from scratch. This allows it to bring down costs and quickly scale up production.

In 2024, BYD overtook American rival Tesla to become the top-selling EV brand in the world with revenue of $107 billion.

Image of Warren Buffett

Image source: Getty Images

While heavy tariffs will likely prevent BYD's cars from entering the U.S. market any time soon, the company has a massive opportunity for expansion elsewhere in the world. Management aims to double international sales to 800,000 in 2025, avoiding tariffs and other forms of protectionism by manufacturing locally. Tesla's weakness in the EU could turn into an opportunity for BYD to gain market share.

With a forward price-to-earnings (P/E) multiple of just 21, BYD's shares are remarkably affordable. For context, Tesla has a forward P/E of 127.

Warren Buffett is holding a record amount of cash

While Amazon and BYD are both relatively important holdings in the Berkshire Hathaway portfolio, they pale in comparison to the company's cash pile, which stood at a record of $334 billion at the end of 2024 after it sold $134 billion in stocks last year.

Buffett's defensive posture could signal that he feels cautious about the stock market in general, which makes sense considering the volatility surrounding Trump's trade policy. While Amazon and BYD remain great long-term buys, investors should also consider diversifying their holdings to minimize risk in this uncertain market.

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 $304,370!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $37,442!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $617,181!*

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

See the 3 stocks »

*Stock Advisor returns as of May 5, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Berkshire Hathaway. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
USD/CHF remains depressed below 0.8000 amid a moderate market optimism The US Dollar is unable to put any significant distance from last week’s long-term low at  0.7960 area, as the pair remained capped below 0.8000 on Monday
Author  FXStreet
10 hours ago
The US Dollar is unable to put any significant distance from last week’s long-term low at  0.7960 area, as the pair remained capped below 0.8000 on Monday
placeholder
OPEC+ Announces Further Production Increase, Crude Oil Prices Likely to DropWTI prices are still about $12 below the previous Monday's high, as prices lack upward momentum due to easing Middle East peace tensions and OPEC+ members expecting another increase in production in August.
Author  Insights
10 hours ago
WTI prices are still about $12 below the previous Monday's high, as prices lack upward momentum due to easing Middle East peace tensions and OPEC+ members expecting another increase in production in August.
placeholder
Gold Price Forecast: XAU/USD failure to breach $3,300 brings $3,250 back into focusGold (XAU/USD) is bouncing higher on Monday, but the broader trend remains bearish, following a nearly 3% decline last week.
Author  FXStreet
11 hours ago
Gold (XAU/USD) is bouncing higher on Monday, but the broader trend remains bearish, following a nearly 3% decline last week.
placeholder
US Dollar Index (DXY) remains depressed below 97.00 on trade talks, US debt woesThe US Dollar has bounced up from three-year lows on Monday, but remains depressed below the 97.00 level.
Author  FXStreet
11 hours ago
The US Dollar has bounced up from three-year lows on Monday, but remains depressed below the 97.00 level.
placeholder
UK-US trade agreement is now in forceUK car export tariffs to the US cut from 27.5% to 10%, saving manufacturers hundreds of millions annually.
Author  Cryptopolitan
11 hours ago
UK car export tariffs to the US cut from 27.5% to 10%, saving manufacturers hundreds of millions annually.
goTop
quote