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Two perpetual investment options suggested by Warren Buffet.

Two Enduring Stocks Advised by Warren Buffett for Lifelong Investment
Two Enduring Stocks Advised by Warren Buffett for Lifelong Investment

Two perpetual investment options suggested by Warren Buffet.

Buffet's been a wealth-creating machine for Berkshire Hathaway shareholders, inspiring individual investors thanks to his focus on quality investments and a long-term perspective, disregarding market turbulence. Here are two Berkshire gems that could help you build a retirement fortune.

1. Apple

Warren's been Apple's (AAPL 0.75%) biggest fan since 2016, and his enthusiasm hasn't waned – he predicted Apple would still be Berkshire's largest holding by year's end in 2024. Berkshire still owned 300 million Apple shares at the end of Q3, worth a hefty $70 billion, while its next-largest stock, American Express, was only worth $41 billion.

Buffet considers Apple superior to any company Berkshire owns, thanks to its massive and loyal customer base – by 2024, Apple's active device user count had skyrocketed, with millions of customers owning multiple Apple products. Apple's services business saw incredible growth, powered by Apple's investment in quality and variety. With over a billion subscribers on its platform, Apple boasts a record-breaking revenue haul, even in a slow iPhone sales year.

Apple's revenue expanded by 2% in fiscal 2024, topping $391 billion, largely due to a 13% jump in services revenue. Apple's Smart Home product, Apple Intelligence, could boost sales further, as it only works on newer devices. Apple's AI integration could unlock new growth opportunities and strengthen its competitive position.

Apple's high product margins have fueled $93 billion in net profits last year, leaving them with abundant resources for reinvestment in new products and services. Despite its high price tag, investing in Apple and dollar-cost averaging over time can yield solid returns.

2. Amazon

Berkshire's owned a substantial Amazon (AMZN 2.39%) stake since 2019, and their position continues to swell. Amazon's massive online retail market share and thriving cloud computing services, per Amazon Web Services (AWS), put Amazon in a prime position to dominate digital commerce.

Sales may be slower for online retail, but Amazon's steady growth is rooted in its Prime membership program. Prime subscribers are increasingly locked into the service, with benefits like grocery delivery and prescription services making cancelation difficult. Amazon reported surging paid memberships, fueling a 11% jump in subscription revenue in Q3.

Amazon keeps expanding its horizons, with AWS offering a lucrative alternative revenue stream. AWS's annual revenue topped $103 billion, making it a cornerstone of Amazon's growth strategy. The high profitability of its diversified revenue streams gives Amazon significant resources to invest in new products, services, and fulfillment centers, ensuring long-term growth.

  1. If you're considering long-term investment opportunities, Buffet's continued enthusiasm for Apple, a company Berkshire Hathaway's largest holding, might be worth exploring. Berkshire's substantial investment in Apple, worth over $70 billion, is a testament to Buffet's belief in its growth potential due to its strong customer base and services business.
  2. Another smart investment decision, according to Buffet's philosophy, is Berkshire's substantial stake in Amazon. This investment has swelled since 2019, driven by Amazon's market dominance in online retail and its thriving cloud computing services via Amazon Web Services. The company's steady growth and diversified revenue streams provide it with ample resources for future investments and growth.

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