With as impressive of an investing track record as Warren Buffett has achieved, you’d expect his Berkshire Hathaway portfolio would be loaded with great stocks. And you’d be right.
The good news is that you don’t need a huge amount of cash to buy many of those stocks. Here are my picks for the best Buffett stocks to buy with less than $350 right now.
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1. Amazon
I selected Amazon (NASDAQ: AMZN) as one of my three highest-conviction growth stocks to buy in 2025. For under $220, you can own part of one of the most innovative companies in the world.
Buffett is a big fan of buying stocks of businesses that he understands. I suspect Amazon will check off that box for many investors. Millions of people shop on its e-commerce platform, watch shows on Prime Video, use the company’s Kindle e-book reader, and have its smart devices in their homes.
Amazon still has solid growth prospects with its core e-commerce business. However, the company’s cloud unit — Amazon Web Services (AWS) — is the main reason to buy the stock, in my view. Even before OpenAI’s ChatGPT burst onto the scene, organizations were rapidly shifting their apps and data to the cloud. But with generative AI serving as a huge tailwind, this transition is accelerating. As the top cloud services provider, AWS is a natural beneficiary of this trend.
I also like Amazon’s continual focus on finding new ways to grow. The e-commerce and cloud giant has expanded into groceries, healthcare, robotaxis, and more. Amazon founder Jeff Bezos once said, “Your margin is my opportunity.” With plenty of lucrative businesses and Amazon’s resources, the company should have plenty of growth opportunities ahead.
2. Citigroup
For a while, Buffett seemed to have become disenchanted with bank stocks. However, he hasn’t sold any of Berkshire’s stake in Citigroup (NYSE: C) since initiating a position in the large financial services company in the first quarter of 2022.
Citigroup is affordable for budget-conscious investors, with its shares trading under $75. Even better, its valuation is also attractive, with a forward price-to-earnings ratio of only 9.9. By comparison, the S&P 500 (SNPINDEX: ^GSPC) financial sector’s forward earnings multiple is 16.5.
Income investors should like Citigroup. It pays a dividend with a forward yield of 3%. This dividend appears to be quite safe, with Citigroup’s payout ratio of 61%.
But does Citigroup offer anything to growth investors? I think so. The stock has soared close to 40% over the last 12 months. The incoming Trump administration seems likely to push for deregulation in the financial services sector, which could translate to lower costs and higher earnings for Citigroup. As Buffett knows, stock prices usually increase when earnings do over the long run.
3. Nu Holdings
Nu Holdings (NYSE: NU) might seem to be an unlikely stock for Buffett to own. The fintech company operates the leading Latin American digital bank platform. Buffett usually focuses on U.S. stocks rather than international stocks (with Berkshire’s stakes in five Japanese trading houses standing out as a notable exception).
Sure, Buffett sold 19% of Berkshire’s position in Nu during the third quarter of 2024. This sale took a toll on Nu stock. It’s down more than 30% from the peak set in November, with the decline starting after Berkshire’s regulatory filing revealing its Q3 trades.
However, I think Nu is a great stock for investors who aren’t billionaires to buy right now. You won’t need much money to scoop up a share, either: Nu’s share price is only around $11. With Amazon and Citigroup, that brings the total required to invest in each of these three Buffett stocks to a little over $300 — well below the $350 threshold mentioned earlier.
I like Nu’s long-term growth prospects. The company’s success thus far has been primarily achieved in its home country of Brazil, with over half of adults there using its financial platform. Nu CEO David Velez believes that Mexico “could be another Brazil.” If he’s right (and I suspect he is), Nu should have huge upside potential.
Should you invest $1,000 in Amazon right now?
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Citigroup is an advertising partner of Motley Fool Money. Keith Speights has positions in Amazon and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon and Berkshire Hathaway. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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