Warren Buffett will oversee Berkshire Hathaway for just a few more months, but his insights and leadership promise to guide investors through turbulent times, encouraging sound decision-making.
If you have $1,000 to invest and are interested in solid Buffett-approved stocks, consider Amazon (NASDAQ:AMZN) and American Express (NYSE:AXP).
Buffett mentioned that the choice to invest in Amazon wasn’t entirely his own; it came from one of his investment managers. Still, he admires Jeff Bezos and acknowledges he overlooked its potential for too long. Berkshire Hathaway diversified its investments by adding Amazon to its portfolio back in 2019.
When Berkshire made this investment, the term artificial intelligence was still somewhat vague for many, even though Amazon had already been utilizing AI across its operations for years. As generative AI made strides in 2022, Amazon quickly stepped up, offering an array of tools to AWS clients.
The potential here is immense. CEO Andy Jassy remarked, “How often do you find a company with an annual revenue run rate of $123 billion that’s still in its early stages?” Amazon is directing hundreds of millions into its AI capabilities, trying to keep pace with demand, which currently exceeds supply. Even with its $100 billion utilization rate, it’s a challenge to meet the needs.
And this focus on AI isn’t even Amazon’s biggest draw. The company’s main strength lies in e-commerce, where it holds about 40% of the U.S. market, which is still on the rise. Amazon aims to enhance its appeal with a broader product range and quicker delivery options to maintain its market leadership.
It’s quite impressive for such a large company to report double-digit sales growth. In fact, Amazon saw a 13% year-over-year sales increase in Q2 2025, reassuring investors about its ongoing viability and future prospects.
American Express, on the other hand, is a quintessential Buffett investment and has been part of Berkshire Hathaway’s holdings for nearly three decades.
Buffett appreciates Amex for several reasons. The company has a unique payment model that generates significant cash flow through its banking services while also profiting from interest income via credit cards. Additionally, catering to a wealthy clientele ensures consistent and reliable spending patterns.
With a membership structure that charges annual fees on many credit cards, Amex also boasts an attractive rewards program that appeals to its premium users. Regular fee increases contribute steadily to revenue, enhancing profits year after year.
Furthermore, American Express consistently raises its dividends, signaling a strong commitment to shareholder returns and significant cash flow generation for broader business benefits.
Despite inflation, the company continues to thrive, attracting a younger customer base that promises future growth.
Interestingly, American Express stands in contrast to Amazon—it’s a century-old company that has successfully redefined itself to offer value through generations. It’s maintained its status as a financial powerhouse, likely continuing to draw new customer demographics to its services.
Ever feel like you’ve missed the chance to invest in noteworthy stocks? If so, you might want to take note.
In specific instances, our expert analysts offer recommendations on “Double Down” stock prospects for companies that show potential for significant growth. If you’re feeling anxious about missing out, now might be the perfect time to invest.
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NVIDIA: If you invested $1,000 when it doubled in 2009; you have $475,196*
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Apple: If you invested $1,000 when it doubled in 2008; that’s $47,949*
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Netflix: If you invested $1,000 when it doubled in 2004; you have $646,805*
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There are currently “double down” alerts for select promising companies.* Keep in mind that this opportunity might not come around often.
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*Stock Advisor will return as of October 13, 2025
American Express is an advertising partner. The Motley Fool has positions in and recommends Amazon and Berkshire Hathaway. The Motley Fool has a Disclosure policy.
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