Warren Buffett’s investment strategy has proven successful over the years. His portfolio at Berkshire Hathaway offers insights into stocks that can weather market volatility. Two stocks from Buffett’s portfolio stand out as solid buys right now.
Amazon is a top pick. While known for e-commerce, much of Amazon’s recent growth comes from cloud computing, advertising, and fulfillment services. These high-margin segments are expanding rapidly.
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Amazon Web Services, the cloud division, holds a market share of over 30% and generates $107.6 billion annually. Amazon’s AI advancements, like Alexa, deepen its competitive advantages in online retail. The stock trades at its lowest valuation in a decade based on cash flow.
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Buffett’s top portfolio picks
Mastercard is another attractive Buffett holding. It has delivered nearly 500% returns over the past decade.
Mastercard’s business model, which involves processing transactions rather than issuing cards, allows it to avoid credit risks. The company dominates the industry alongside a few other networks. In 2024, Mastercard processed $9.8 trillion in transactions, yielding $28.2 billion in revenue.
Typically, half of this converts to profits. Despite already being accepted at 150 million locations, Mastercard has a long growth runway, as over 1.5 trillion transactions are still done in cash and check each year. While Mastercard trades at a premium valuation, this is normal for elite growth stocks with wide moats.
Analysts expect 14% annual earnings growth in the coming years. Overall, Amazon and Mastercard represent durable companies with strong competitive positions and significant growth prospects. They look like solid buys in the current market environment.
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