Warren Buffett is the GOAT (greatest of all-time) when it comes to investing, and it isn’t even close. His conglomerate, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), has posted an overall gain of 3,787,464% through the end of 2022, meaning he turned $1,000 into roughly $37 million. And Berkshire’s compound annual gain has doubled that of the S&P 500 — at 19.8% versus 9.9% — from 1965 to 2022.
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If you have $1,000, you might want to consider following his lead. Keep reading to see two Buffett stocks worth buying hand over fist.
1. Apple
Apple (NASDAQ: AAPL) is the most valuable company in the world, and it now makes up nearly half of Berkshire Hathaway’s stock portfolio.
Buffett’s conglomerate started buying Apple in 2016 and the iPhone maker has delivered huge returns. Apple continues to expand its economic moat, grow its base of installed devices, expand margins through its services segment, and raise prices on iPhones thanks to improved cameras and other innovations.
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Buffett has sung Apple’s praises on multiple occasions, saying that it’s a better business than any of Berkshire’s wholly owned subsidiaries, and he thinks of it as the company’s third business after insurance and the BNSF railroad.
Another reason to like the stock is Apple’s new Vision Pro mixed-reality headset, which has the potential to move the needle on the company’s financials and define a new tech category, which it refers to as spatial computing.
Meanwhile, the improving global economy should bode well for demand for its tablets and smartphones, as Apple continues to grow its global market share. The stock may be expensive at the moment, but the potential of the Vision Pro doesn’t seem to be factored into the valuation.
2. Amazon
Amazon (NASDAQ: AMZN) isn’t nearly as big a holding for Berkshire Hathaway as Apple, but Buffett has also made it clear that he’s a fan of the company and its founder, Jeff Bezos, saying, “We haven’t seen many businessmen like him.”
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Amazon has built an impressive network of competitive advantages. They include its Prime loyalty program, which now has more than 200 million members globally; its unmatched logistics network; and Amazon Web Services, its cloud infrastructure arm, which remains the segment leader and a huge profit generator.
And its massive e-commerce business has enabled high-margin businesses like advertising and its third-party marketplace that continue to see strong growth.
Now also looks like an opportune moment to buy Amazon because the company is engaged in an unprecedented cost-cutting campaign, laying off 18,000 employees and taking a hard look at its Fresh delivery and Prime video services.
After years of prioritizing growth, and with more than $500 billion in revenue, the company has the potential to be significantly more profitable than it has been historically.
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The stock is still down by close to a third from its all-time high, giving it ample room to run if it can continue to grow the top line and improve its profitability. And there’s still a considerable opportunity ahead for the company in e-commerce and cloud computing despite its recent struggles.
