Two Stocks That Warren Buffett Would Keep in His Forever Box

Ah, Warren Buffett-the Oracle of Omaha-whose name is synonymous with stock market sagacity. Investors, with their eyes wide open and their hopes equally wide, are forever trailing after his every move, like a dog after a particularly promising squirrel. Buffett, with his legendary ability to pick stocks that seem to grow money like trees in the forest of finance, follows a simple mantra: Find solid businesses, buy at reasonable prices, and hold onto them for what could best be described as an investment eternity. A prime example of his approach is his enduring love affair with Coca-Cola, a stock he purchased in the late 1980s and has never let go of. It’s like a friendship that, for some inexplicable reason, never quite sours.

As the head honcho of Berkshire Hathaway, Buffett has demonstrated that this approach is, in fact, not just an eccentric hobby for a billionaire, but a business strategy that works. Over the last 59 years, he’s managed a compounded annual gain of around 20%, while the S&P 500-poor thing-has only managed to achieve a 10% annual gain over the same period. It’s like the tortoise outpacing the hare, except the tortoise has a vast array of shiny suits and the hare is covered in dust and regret.

So, without further ado, let’s take a gander at two Buffett-approved stocks that could very well be worthy of a permanent place in your portfolio… and possibly your heart (though let’s not get too sentimental about it, shall we?).

1. Amazon

Now, Amazon is one of those companies that didn’t exactly have an easy introduction to Buffett’s inner circle. In fact, when Amazon first emerged from the mist of the Internet Age, Buffett had the same reaction as many of us would have had: “No, thank you. I’d rather not buy into a book-selling empire that operates with the speed of a caffeine-fueled squirrel.” But then, in 2019, a member of Buffett’s team decided, “Better late than never!” and Amazon was added to Berkshire Hathaway’s portfolio. And lo, it has risen more than 100% since that fateful day. (All thanks to a carefully timed entry that would have made the Wizarding Guild of Economics stand up and take note.)

But what really gets Amazon’s stock buzzing is its cloud business, Amazon Web Services (AWS), which-if it were a person-would be the cool kid at the party. AWS is the world’s biggest cloud provider, and not only is it the largest, but it’s also Amazon’s biggest moneymaker. It’s like the financial equivalent of a wizard who can pull gold coins out of the air, except it’s not magic; it’s cloud computing.

And just when you thought Amazon couldn’t get any more exciting, along comes the world of Artificial Intelligence (AI). It’s as if Amazon has decided to open up a secret door into a vast, glittering treasure trove of possibilities. AWS is already making use of AI to enhance its efficiency and lower costs, and that’s not even the best part. In a world where AI could soon become the next trillion-dollar industry, Amazon is perfectly positioned to ride the wave. The company has reached a $123 billion annual revenue run rate thanks to AWS-and it’s only going to grow from here. How delightful it is when a plan comes together like that.

Currently, Amazon is trading at a very sensible 34 times forward earnings estimates, down from more than 50 last year. All of this suggests that the time to buy, if you haven’t already, is now. After all, if there’s one thing we know about Amazon, it’s that this company doesn’t just plan for the future; it builds it.

2. American Express

American Express, or AmEx as the cool kids call it, has been Buffett’s darling for many years. Why? Well, it’s all about the moat-one of those business models so well-defended that competitors would have to employ sorcery to get past it. American Express serves higher-income customers globally, offering a range of perks that keep its users loyal and its revenues ticking along like a well-oiled machine. It’s the corporate equivalent of a castle with thick walls and a dragon guarding the gates-good luck trying to breach it.

Recently, AmEx has been making strides with younger demographics, particularly Millennials and Gen Z. In fact, 63% of new global accounts were opened by these generations in the last quarter. In case you’re wondering, yes, that’s impressive. Even more impressive is the fact that AmEx’s revenue climbed 9% to a record-breaking $17.9 billion, and cardmember spending hit a quarterly high. Adjusted earnings per share surged 17%, and the company reiterated its full-year revenue and earnings guidance. It’s like the company is saying, “We’ve got this. Don’t worry, we’ve been doing this a while.”

What really makes AmEx a strong contender, though, is its resilience during economic downturns. The company’s affluent customers-who are much less likely to cut back on spending during tough times-make it a safe bet even when the economy is more fragile than a wizard’s self-esteem after a botched spell.

AmEx currently trades for 21 times forward earnings estimates, which is a little steeper than it was a year ago, but still a reasonable price for long-term investors. In fact, Buffett himself had a few words about American Express (and Coca-Cola) in his 2023 letter to shareholders: “The lesson from Coke and AmEx? When you find a truly wonderful business, stick with it.” Wise words, indeed.

So there you have it, two stocks that Buffett would probably never part with. But of course, this is not financial advice-just the ramblings of a market watcher who’s seen enough to know that, sometimes, it’s the simplest strategies that stand the test of time. 📈

2025-09-15 03:03

1. Amazon

2. American Express

Read More