Have $1,000? 3 Warren Buffett Stocks That Could Beat the S&P 500 in 2025

Core Insights - The article discusses the challenges of consistently outperforming the S&P 500, highlighting Warren Buffett's long-term success with Berkshire Hathaway compared to the index's performance [1][2] American Express - American Express is a significant holding in Berkshire Hathaway's portfolio, now the second-largest equity position after selling some Bank of America shares [4] - The company operates a closed-loop credit card network, allowing it to function independently and create a unique financial ecosystem targeting affluent customers [5] - American Express has strong rewards programs that encourage customer loyalty despite higher annual fees [6] - In the first nine months of 2024, revenues rose by 9% year-over-year, and earnings per share (EPS) increased by 28% [7] - The stock price surged by 58% in 2024, and with moderating inflation, the company is expected to benefit from increased credit card usage and lower interest rates in 2025 [8] Visa - Visa, while a smaller position in Buffett's portfolio, possesses many desirable investment traits, being the largest credit card network globally [9] - The company operates a capital-light model with profit margins reaching 55% in fiscal 2024, alongside a 10% revenue increase and a 17% rise in EPS [10] - Visa is actively developing new partnerships and products to maintain its essential role in the global economy [11] - Although Visa's stock gained 22% in 2024, slightly underperforming the S&P 500's 25% gain, it has historically been a reliable market performer and pays a growing dividend [12] Amazon - Amazon is a smaller investment in Buffett's portfolio, with significant growth since his initial investment in 2019, gaining over 130% compared to the S&P 500's 97% [13] - The company leads in both e-commerce and cloud computing, with generative AI identified as a major growth driver by CEO Andy Jassy [14] - The transition from on-premises systems to cloud solutions presents a substantial opportunity for Amazon, with AI already generating billions in revenue [15]