Top Warren Buffett Stocks to Invest $2,000 In Right Now

The S&P 500 has recently dropped over 7% in the last month, approaching correction territory. This decline has led to increased worries among investors, primarily about President Donald Trump's tariffs sparking trade wars and the potential slowdown of the U.S. economy.

Amid this uncertainty, investors are searching for solid investment opportunities, and one strategy that stands out is similar to that of Warren Buffett. His buy-and-hold approach has consistently proven effective and has contributed to the success of his investment company, Berkshire Hathaway.

If you have $2,000 to invest, two remarkable companies from Berkshire Hathaway's extensive portfolio, worth $284 billion, that you might consider are Amazon (AMZN) and American Express (AXP).

1. Investing in Amazon

While Amazon constitutes a small part of Berkshire Hathaway's holdings, it is an attractive option for investment during volatile market conditions. Although some investors may have concerns about Amazon's e-commerce sector if a recession occurs, this perspective might overlook significant aspects of the business.

Historically, Amazon has performed well during economic downturns. For instance, during the financial crisis in 2008, the company’s revenue increased by 29% compared to the previous year. Similarly, from 2020 to 2021, following the pandemic-related economic slump, Amazon's sales surged by 22% annually. While future performance can't be guaranteed, Amazon’s vast marketplace includes essential household items that consumers are likely to continue buying during tough times.

Additionally, Amazon's cloud-computing division, Amazon Web Services (AWS), is poised for growth alongside the artificial intelligence (AI) market. AWS generated $28.8 billion in sales during the fourth quarter, which accounted for 15% of total sales and half of Amazon's operating income.

Currently, AWS holds the top position in the cloud-computing market, surpassing competitors like Microsoft and Alphabet, and there’s plenty of room for continued expansion. Analysts at Goldman Sachs predict that the rise of AI is expected to drive cloud sales significantly over the next five years, potentially reaching $2 trillion globally.

With Amazon's stock down about 12% in recent months, this could be a favorable moment to purchase shares at a lower price.

2. American Express: A Buffett Favorite

American Express has been a favorite of Warren Buffett since he first added it to the Berkshire portfolio in 1991. It now represents 14% of Berkshire's total investments, making it the second-largest position after Apple.

American Express recently showcased impressive 2024 results, with revenue climbing 9% to $65.9 billion and diluted earnings per share rising by 25% to $14.01. The prospects for future growth look strong, as management forecasts a similar 9% revenue increase for 2025. They expect earnings per share to grow 14%, reaching approximately 15.25.

Moreover, American Express onboarding 13 million new cardholders last year is noteworthy, with a significant portion of these being “fee-paying” memberships, which contribute additional annual income.

Some might question the wisdom of investing in a stock that relies on consumer spending during uncertain economic times. However, American Express’s stock has experienced a 9% decline year-to-date, leading to a more attractive price-to-earnings (P/E) ratio of 19, compared to the S&P 500's P/E ratio of 26.5.

Given American Express’s robust position within the credit card industry and its diminished stock price compared to a few months ago, it may be an opportune time to acquire shares of this reputable Buffett investment.

Note: The information provided does not constitute financial advice. Always do thorough research or consult a financial advisor before making investment decisions.

Stocks, Investing, Economy