3 Warren Buffett Stocks That Look Irresistible Right Now


  • American Express (AXP): After another resilient quarter, investors should give the premium credit card firm more respect.
  • Visa (V): The credit card behemoth has a lot to gain as bets on generative AI and fintech steadily pay off in the long haul.
  • Apple (AAPL): Plenty of reasons to keep buying, even if Berkshire has more to trim from its massive stake.
Warren Buffett Stocks to Buy - 3 Warren Buffett Stocks That Look Irresistible Right Now

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Warren Buffett’s Berkshire Hathaway (NYSE:BRK.B) portfolio is rich with what the Oracle of Omaha would refer to as “wonderful” businesses. Though Berkshire’s portfolio has skewed away from technology stocks in prior decades, one can’t help but notice that the modern-day Berkshire portfolio has pivoted towards the modern age.

And we’re not just talking about the conglomerate’s massive stake in Apple (NASDAQ:AAPL). Aside from the iPhone maker, which still comprises a huge portion of the overall Berkshire portfolio, even after trimming by 13%, Berkshire owns a sprinkling (less than 1%) in Amazon (NASDAQ:AMZN).

Apart from Berkshire’s tech-savvy bets, many other holdings within the Berkshire portfolio always stand to gain a lot by investing in technological initiatives. Most notably, American Express (NYSE:AXP) stands out as a firm that’s equipped to thrive in the data-driven age with its analytics capabilities.

In this piece, we’ll examine three Warren Buffett stocks that look irresistible as they embrace tech to boost long-term growth.

American Express (AXP)

the American Express logo etched into wood
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American Express is one of the older holdings within the Berkshire portfolio. Still, unlike other older Berkshire investments that have dragged their feet on the returns front of late, the premier credit card firm has continued to deliver impressive gains. Year-to-date, AXP stock is up more than 28%, thanks in part to some amazing quarters that shot past analyst expectations.

Consumer sentiment could easily get choppier from here as inflation’s impact continues to weigh. That said, American Express looks poised to continue posting solid numbers, as its “spend-centric” model keeps flexing its muscles, even in the face of high inflation and macro headwinds that stand to impact global spending.

Well-of Amex cardholders and spend-happy Millennials, some of whom were brought on just in the past year, do not look to be putting their cards away. As they continue buying a wide range of goods with their Gold and Platinum cards at 2024-era prices, AXP stock certainly stands out as one of the better inflation-fighting stocks in the market. Higher prices on just about everything translate into larger tabs on one’s monthly Amex bill.

Further, given its recent resilience and continued investments in digital transformation, AXP stock still seems a tad undervalued at less than 20 times trailing price-to-earnings (P/E).

Visa (V)

several Visa branded credit cards
Source: Kikinunchi / Shutterstock.com

Visa (NYSE:V) is a much smaller holding in the Berkshire portfolio at less than 1% at the time of writing. Indeed, Berkshire and Buffett seem to be fans of the credit card business, and it’s not a mystery as to why. Though V stock hasn’t been nearly as hot, up 7.3%, trailing the market by about 3%, I do view the leading credit card company as worth pursuing after its recent roadbump.

Recently, Piper Sandler started V stock with an overweight rating. The company’s impressive network, which has high barriers to entry around it (a wide economic moat), and tech prowess were major reasons why Piper is a fan of the stock.

Most notably, Piper outlined the potential for generative AI to help “drive upside to fundamentals.” Undoubtedly, Visa is as much a financial technology company as it is a creditcard firm. And you can bet it’s taking generative AI seriously as it seeks to gain any operating or growth edge it can get.

Apple (AAPL)

Close-up of Apple (AAPL) retail store Logo in Honolulu at the Ala Moana Center. Advertising the latest generation of the ipad, iphones, and ipods with a Retina display.
Source: Eric Broder Van Dyke / Shutterstock.com

Finally, we have the number-one holding in Berkshire’s public stock portfolio. Investors and Buffett followers have plenty of reasons to buy the stock, even if Berkshire is inclined to continue trimming in the near future.

The rest of 2024 could see Apple’s most aggressive push into generative AI yet, with the WWDC24 to begin on June 10, 2024. Reports suggest the annual multi-day conference could be heavy on generative AI.

Whether it’s as heavy on AI as Alphabet (NASDAQ:GOOG, GOOGL) Google’s recent I/O 2024 event remains to be seen. Regardless, I’m quite bullish on Apple’s near-term future as it looks to bring the AI tech up a notch for its coming iOS 18. With a ChatGPT deal reportedly close to being inked, AAPL stock may have enough drivers to take it right back to all-time highs of close to $198 per share by year’s end.

At 29.15 times trailing P/E, AAPL stock is getting somewhat frothy again. I view the multiple as worth paying if it means that Siri is going to get a heck of a lot smarter.

On the date of publication, Joey Frenette held shares of Apple, Berkshire Hathaway (Class B), Amazon, Alphabet (Class C), and American Express. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joey Frenette is a seasoned investment writer specializing in technology and consumer stocks. Contributing to the Motley Fool Canada, TipRanks, and Barchart, Joey excels in spotting mispriced stocks with long-term growth potential in a fast-paced market.

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