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  • The Motley Fool

    The Best Warren Buffett Stocks to Buy With $50,000 Right Now

    By Dani Cook,

    10 hours ago

    Warren Buffett's holdings company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) , has had a long growth history. Berkshire's stock portfolio delivered a compound annual gain of about 20% from 1965 to 2023. That figure significantly outperforms the S&P 500 's 10.2% return rate during that period, including dividends. As a result, Berkshire Hathaway's holdings have become a guide of sorts for new and old investors who use its portfolio for trading inspiration.

    The company's success over the years has led to massive stock gains. Consequently, it's worth taking a closer look at some of Berkshire Hathaway's top performers. The company's portfolio is filled with stocks that have delivered solid growth over the long term and are likely to continue to do so for years.

    So, here are the best Warren Buffett stocks to buy with $50,000 right now ($25,000 per company). However, even if you're not ready to invest that much, these companies are still worth considering for a smaller investment.

    Apple: Despite a recent offloading, it's still Berkshire Hathaway's largest holding

    Apple (NASDAQ: AAPL) and Buffett have a long history of making headlines together, with Berkshire Hathaway first investing in 2016. Since then, Apple's share price has climbed 762%, making it one of Berkshire's most successful investments.

    Buffett has become renowned for his admiration of Apple, praising its brand loyalty and market penetration. As a result, Wall Street was caught off guard earlier this month when Berkshire Hathaway cut its Apple stock by nearly 50%. The move decreased its stake in Apple from about 6% to just under 3%.

    Yet, despite the sell-off, Apple remains Berkshire's biggest holding, with its $91 billion stake accounting for 29% of its portfolio. And there's good reason for that.

    Apple is preparing to make a massive push into artificial intelligence (AI) by overhauling its product lineup to better serve the soaring demand for generative services. In May, Apple launched its seventh-generation iPad Pro, the first device to use its AI-capable M4 chip. Meanwhile, reports from April hinted the tech giant plans to soon release Macs equipped with the same hardware.

    However, the tech giant's most promising venture into AI will likely come from its September iPhone 16 release. The smartphone launch will preface the debut of Apple Intelligence, an AI revamp of the company's operating systems that will bring new features to iPhones, iPads, and Macs. The company expects its AI expansion to trigger a flurry of consumer product upgrades. Meanwhile, the updates are likely just the start, with the company expected to eventually introduce paid-for AI services.

    Apple's stock isn't the best bargain, trading at about 34 times its forward earnings. However, the company posted $62 billion in cash, cash equivalents, and marketable securities in its latest quarter (the third quarter of 2023). Meanwhile, it's only just starting out in AI, which could take it far over the long term. With vast financial resources and a potent brand, Apple could offer massive gains on a $25,000 investment over the next decade. At its current price, $25,000 would buy about 110 shares of Apple.

    Amazon: Boosting its business with AI

    Berkshire Hathaway's stake in Amazon (NASDAQ: AMZN) only makes up about 0.6% of its portfolio. However, its shares are worth nearly $2 billion. Berkshire could be considered a late investor in Amazon, buying its first shares in the first quarter of 2019. Yet, Amazon's 136% stock growth since then shows it's almost always better late than never. Meanwhile, recent moves indicate Amazon will continue delivering stellar gains for years.

    Like Apple, Amazon has gone full force into AI. The company is no stranger to the technology, using AI to track shopping trends on its e-commerce site and improve warehouse logistics for years. However, Amazon has ramped up its efforts in the industry to maintain its lead against rivals Microsoft and Alphabet . The retail giant is in steep competition with these companies, each achieving prominent positions in the cloud market with their respective platforms.

    Cloud computing has become a crucial growth area in AI as businesses increasingly use such platforms to boost productivity. Amazon has an advantage in this space with a leading 31% market share thanks to the success of Amazon Web Services (AWS). As a result, a recent boom in AI has seen its earnings soar. The company's free cash flow and operating income have risen 186% and 31% over the last year.

    Meanwhile, the company has used its new cash gains to reinvest in its business, expanding AWS with new data centers in multiple regions at home and abroad. Amazon has also announced new AI tools on AWS and a venture into chip design.

    Amazon's forward price-to-earnings ratio is high at 38. However, that figure is well below its 12-month average of 42, suggesting its stock is trading at one of its best values in months. Berkshire Hathaway has made millions with its initial investment in Amazon. AI could see its stock rise much higher in the coming years, making it worth an investment of $25,000 -- which would buy 141 shares of Amazon at its current position.

    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy .

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