2 No-Brainer Warren Buffett Stocks to Buy Now

Core Insights - Warren Buffett plans to retire this year after achieving over 5,000,000% return for long-term investors through Berkshire Hathaway, which has a market capitalization of $1.12 trillion, indicating that future growth may not replicate the past six decades [1] Group 1: Amazon - Berkshire Hathaway owns $1.89 billion in Amazon shares, representing 0.7% of its portfolio, highlighting Buffett's late recognition of Amazon's potential [3] - Amazon's economic moat is significant, with its size attracting more buyers and sellers, enhancing competition and product variety, while also achieving economies of scale in logistics [4] - Amazon Web Services (AWS) contributes around half of Amazon's operating income, providing a buffer against consumer spending fluctuations and positioning the company to benefit from long-term growth in generative AI [6] - Challenges from new tariffs may impact Amazon, but its third-party business model can mitigate these effects by shifting costs to marketplace sellers [5] Group 2: BYD - Berkshire Hathaway has a $2.68 billion stake in BYD, showcasing its support for the Chinese EV maker since 2008, which has established a strong economic moat [7] - BYD's vertical integration allows it to control its supply chain, from battery production to lithium mining, enabling cost reduction and rapid production scaling [8] - BYD became the top-selling EV brand globally in 2024 with revenue of $107 billion, surpassing Tesla [8] - Despite heavy tariffs limiting BYD's entry into the U.S. market, the company aims to double international sales to 800,000 by 2025 through local manufacturing [9] - BYD's shares have a forward P/E of 21, making them relatively affordable compared to Tesla's forward P/E of 127 [10] Group 3: Berkshire Hathaway's Cash Position - Berkshire Hathaway holds a record cash pile of $334 billion as of the end of 2024, following the sale of $134 billion in stocks last year, indicating a cautious investment strategy [11] - Buffett's defensive posture may reflect concerns about overall market volatility, particularly related to trade policies [12]