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Warren Buffett is one of the most successful investors of all time. He has outperformed the stock market for many years. The Oracle of Omaha’s long-term success has prompted many people to study his teachings and look closer at his portfolio.
While he has exceeded market returns, not all of Buffett’s stocks have been winners. Some of the stocks in his portfolio aren’t promising, but it’s the good stocks he picks that do most of the heavy lifting. Adding solid companies to your portfolio can increase your odds of outperforming the market. These are three Warren Buffett stocks to buy now.
Visa (V)
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Warren Buffett has many finance stocks in his portfolio, including Visa (NYSE:V). The credit and debit card leader offers impressive financial growth and profit margins. Many consumers use credit and debit cards to buy goods and services due to convenience, rewards and the opportunity to build credit with a credit card.
Visa reported 9% year-over-year (YoY) revenue growth in the first quarter of fiscal 2024. Net income grew by 17% YoY and helped the firm secure a 56.64% net profit margin.
Warren Buffett isn’t the only investor who feels good about Visa stock. Analysts have rated the stock as a Strong Buy and believe there is a 14% upside from its current price. The highest price target of $335 per share offers additional optimism.
Visa stock has been achieving returns similar to the stock market. Shares are up by 5% year-to-date and have gained 70% over the past five years.
Amazon (AMZN)
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Warren Buffett has been late to the party for tech stocks, but he does have Amazon (NASDAQ:AMZN) in his portfolio. The company checks many of his boxes. It has a competitive moat and rising profit margins. AMZN also has a runway to expand in e-commerce, cloud computing, advertising, streaming and other segments for several years.
The stock has outperformed the market with an 18% year-to-date gain. Shares are up by 76% over the past year. Analysts believe the stock can go higher and are projecting an 18% upside. The stock has a Strong Buy rating from 42 analysts, all of whom rated the stock as a Buy. It’s rare for analysts to universally approve of a stock.
Amazon reported another successful quarter, which featured 14% YoY revenue growth. The tech conglomerate generated a record $170.0 billion in revenue during that quarter. Amazon Web Services, the company’s cloud platform, increased its sales by 13% YoY.
American Express (AXP)
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American Express (NYSE:AXP) is another finance stock that has found its way into Buffett’s portfolio. He’s been investing in this one for decades, and it’s easy to see why. The stock is up by 93% over the past five years and only has a 20 P/E ratio. That’s a lower valuation than most credit and debit card stocks.
The financial firm is expecting to deliver revenue growth ranging from 9% to 11% each year beyond 2026. The company also expects its EPS growth rate to be in the mid-teens. American Express lived up to those standards in Q4 2023. Revenue and net income increased by 11% and 23% YoY, respectively.
American Express has also done a good job with its dividend. The company announced in its Q4 2023 press release that it would hike its dividend by 17%. That’s an upgrade from the company’s annualized 10.43% dividend growth rate over the past decade.
On this date of publication, Marc Guberti held a long position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.
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