2 No-Brainer Warren Buffett Stocks to Buy Right Now
Saturday, Oct 26, 2024 6:51 pm ET
1min read Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, has long been admired for his investment prowess and timeless wisdom. His focus on long-term ownership, margin of safety, and quality has guided countless investors to successful portfolios. In this article, we explore two stocks that align with Buffett's investment philosophy and are poised for growth: Amazon (AMZN) and Coca-Cola (KO).
Amazon: A High-Growth Opportunity
Amazon, the e-commerce giant, has been a standout performer in recent years, driven by its robust e-commerce platform and cloud computing services through Amazon Web Services (AWS). Buffett's investment manager, Todd Combs, initiated a position in Amazon in early 2019, and the stock has since soared. In the first six months of 2024, Amazon's North American segment's operating income surged to over $10 billion, a significant increase from the $4.1 billion in the same period last year. Internationally, Amazon's operating income improved to $1.2 billion, up from a loss of $2.1 billion in the same period last year.
AWS, Amazon's profit-making machine, generated $18.8 billion in operating income in the first half of 2024. With a 31% market share, AWS is the largest cloud computing platform globally and is expected to maintain its growth momentum. The global cloud computing market is projected to grow at a compound annual growth rate of 21% through 2030, presenting a significant opportunity for Amazon.
Coca-Cola: A Reliable Dividend Stock
Coca-Cola, the iconic beverage company, has been a staple in Berkshire Hathaway's portfolio for decades. Its strong brand, extensive distribution network, and consistent financial performance make it an attractive long-term investment. In the second quarter of 2024, Coca-Cola generated $12.4 billion in revenue and $7.6 billion in gross profit, up 3% and 7% year-over-year, respectively. The company's comparable EPS grew by 5% to $0.77, driven by share buybacks and disciplined cost controls.
Coca-Cola's dividend is another compelling reason to invest in the company. With a forward yield of around 2.8%, Coca-Cola offers a reliable and growing income stream. As a Dividend King, Coca-Cola has increased its dividend for 62 consecutive years, a testament to its financial strength and commitment to shareholders.
Both Amazon and Coca-Cola exhibit the qualities Buffett values in a stock. Amazon's high growth potential and Coca-Cola's reliable dividend and strong brand make them attractive investments for long-term-oriented investors. By focusing on these no-brainer stocks, investors can align their portfolios with Buffett's timeless investment principles and avoid the pitfalls of market timing and chasing trends.
Amazon: A High-Growth Opportunity
Amazon, the e-commerce giant, has been a standout performer in recent years, driven by its robust e-commerce platform and cloud computing services through Amazon Web Services (AWS). Buffett's investment manager, Todd Combs, initiated a position in Amazon in early 2019, and the stock has since soared. In the first six months of 2024, Amazon's North American segment's operating income surged to over $10 billion, a significant increase from the $4.1 billion in the same period last year. Internationally, Amazon's operating income improved to $1.2 billion, up from a loss of $2.1 billion in the same period last year.
AWS, Amazon's profit-making machine, generated $18.8 billion in operating income in the first half of 2024. With a 31% market share, AWS is the largest cloud computing platform globally and is expected to maintain its growth momentum. The global cloud computing market is projected to grow at a compound annual growth rate of 21% through 2030, presenting a significant opportunity for Amazon.
Coca-Cola: A Reliable Dividend Stock
Coca-Cola, the iconic beverage company, has been a staple in Berkshire Hathaway's portfolio for decades. Its strong brand, extensive distribution network, and consistent financial performance make it an attractive long-term investment. In the second quarter of 2024, Coca-Cola generated $12.4 billion in revenue and $7.6 billion in gross profit, up 3% and 7% year-over-year, respectively. The company's comparable EPS grew by 5% to $0.77, driven by share buybacks and disciplined cost controls.
Coca-Cola's dividend is another compelling reason to invest in the company. With a forward yield of around 2.8%, Coca-Cola offers a reliable and growing income stream. As a Dividend King, Coca-Cola has increased its dividend for 62 consecutive years, a testament to its financial strength and commitment to shareholders.
Both Amazon and Coca-Cola exhibit the qualities Buffett values in a stock. Amazon's high growth potential and Coca-Cola's reliable dividend and strong brand make them attractive investments for long-term-oriented investors. By focusing on these no-brainer stocks, investors can align their portfolios with Buffett's timeless investment principles and avoid the pitfalls of market timing and chasing trends.
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