Invest in Two Straightforward Shares, Suggested by Warren Buffet, Immediately
Warren Buffett, the notorious investor, and the brains behind Berkshire Hathaway, has a reputation that's hard to rival. This company's performance over the years has turned Buffett into a household name.
Many people eagerly monitor Buffett's investments to get a sense of where they should allocate their own funds. Although the average person's investment priorities differ from those of a billionaire, there is much to learn from Berkshire Hathaway's holdings and approach.
Right now, two investments stand out as potentially promising for the long term.
1. Amazon
Amazon, known as AMZN (0.79%), has quietly risen to become a leader in the tech world. While Microsoft and Alphabet may still outshine it in terms of the sheer breadth of its net, Amazon is clearly on its way.
Buffett admitted that he was initially hesitant about investing in Amazon, but his partners' persuasion led Berkshire Hathaway to make the move. That decision has proven to be a good one, given Amazon's stellar returns during the last decade.
North America (in billions)
Amazon's revenue was an impressive $638 billion in 2024, marking an 11% increase from the previous year. Walmart remains the only public company to generate more revenue.
$14.9
What's more remarkable is Amazon's profitability. In recent years, the company has managed to turn a profit, not just in its e-commerce segment, but also in cloud computing (through Amazon Web Services, or AWS) and its international operations.
$25.0
| Business Segment | 2023 Operating Income (in billions) | 2024 Operating Income (in billions) || --- | --- | --- || North America | $14.9 | $25.0 || International | (-$2.7) | $3.8 || AWS | $24.6 | $39.8 |
Amazon's significant growth in the near future is likely to come from AWS, which is spearheading the thriving cloud computing market. As artificial intelligence (AI) developments help drive more widespread AI adoption, Amazon will be well-positioned to capitalize on the opportunities.
International (in billions)
2. Visa
($2.7)
Visa, another Berkshire Hathaway investment, is a smaller holding with a solid foundation. Buffett often says, "The best business is a royalty on the growth of others, requiring little capital itself," and Visa is a prime example.
$3.8
Visa benefits from the "network effect," which makes it a compelling choice for both cardholders and merchants. With its widespread acceptance worldwide, Visa is hard to resist for cardholders, while merchants have no other viable option if they want to accept a widely used card.
Visa's setup has allowed it to thrive financially. Its revenue has doubled in the last decade, and its profit margins are impressively high compared to most other companies.
Amazon Web Services (in billions)
Even as many parts of the world continue to rely heavily on cash, consumer adoption of card and mobile payments is increasing. As financial infrastructure develops worldwide, Visa will likely prosper from the surge in transaction volume.
$24.6
In 2024, Visa processed an astonishing 310.4 billion transactions. This number is set to rise with time, providing a solid investment opportunity for long-term holders.
$39.8
- Many investors are inspired by Warren Buffett's decision to invest in Amazon, which has significantly increased in value over the past decade.
- Berkshire Hathaway's investment in Visa, a company Buffett describes as a "royalty on the growth of others," has also seen impressive growth and profitability.
- The adoption of card and mobile payments worldwide, driven by advances in financial infrastructure, is expected to continue benefiting Visa and boost its transaction volume.
- As more people seek to invest in companies with strong long-term potential, the financial success of Amazon and Visa under Berkshire Hathaway's management serves as a valuable example.
