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7 of Warren Buffett's Favorite Stocks Worth a Look If You Have $1,000 To Invest

Here are some Buffett-backed stocks experts say are worth considering for your next investment move.

By Adam Palasciano

Edited by Chris Kissell

Updated Jan. 3, 2025

Warren Buffett is often regarded as one of the greatest investors of all time. He has made a name for himself through Berkshire Hathaway’s carefully curated stock portfolio.

With decades of proven strategies, Buffett’s picks usually have strong fundamentals that position them for long-term growth.

If you’re looking to build wealth, here are some stocks Buffett’s Berkshire Hathaway has been buying lately — and other Buffett-favored companies that experts say are worth a closer look.

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Amazon (AMZN)

Berkshire Hathaway first took a position in Amazon back in 2019, signaling Buffett’s confidence in the e-commerce giant’s future.

While Amazon is primarily known for its online retail dominance, the company’s cloud computing arm, Amazon Web Services (AWS), also drives significant growth and profits. AWS continues to expand, cementing Amazon as a leader in the high-demand cloud market.

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Chubb (CB)

Chubb is a property and casualty insurance company that aligns perfectly with Buffett’s love of the insurance industry.

Insurance businesses have long been a staple in Buffett’s portfolio. Chubb stands out for its strong underwriting principles and good cash flow. It has consistently recorded strong dividend growth over a period of several decades.

Pool Corp.

Pool Corp. is a distributor of swimming pool supplies and related outdoor products. Buffett bought up shares of the company during the third quarter of 2024.

While this stock may not be as well-known as others on the list, it can benefit from any demand for pool installations, maintenance, and upgrades.

Although overall demand for new pools has declined recently, Pool Corp.’s focus on selling products related to maintenance and remodeling should help it stay afloat.

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American Express (AXP)

American Express has been a Buffett favorite for decades, and Berkshire Hathaway continues to hold a significant position in the company.

Strong brand reputation and a loyal customer base — particularly among high-income individuals and businesses — drive the success of American Express.

With its focus on premium card services and travel rewards, American Express maintains a competitive edge in the financial services market.

Citigroup (C)

Citigroup is the fourth-largest bank in the U.S. and another financial services giant that Buffett loves, with Berkshire Hathaway holding a sizable stake in the company.

Citigroup stands out for its extensive global presence and ongoing efforts to streamline its operations for improved profitability. The stock also boasts an attractive valuation relative to its peers, making it appealing to value-focused investors.

Domino’s Pizza (DPZ)

Domino’s Pizza is a global leader in pizza delivery. It caught the eye of Buffett enthusiasts after Berkshire bought shares in the third quarter.

The company is increasing its share of the market, with sales significantly outstripping the pizza-segment average. In less than a decade, Domino’s has opened about 1,750 new stores.

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HEICO (HEI)

HEICO is an aerospace and defense supplier and another Buffett pick that stands out for its niche market appeal. The company specializes in producing aftermarket parts for aircraft.

As the aviation industry continues to recover from pandemic disruptions and the government looks at artificial intelligence defense implementation, demand for HEICO’s products could rise.

Do your research before buying products

While the stocks on this list have performed well in the past, there is no guarantee they will continue to do so in the future. Before purchasing any stock, it is important to do your homework and to understand that all investments come with an element of risk.

If you are unsure about where to invest your money, consider meeting with a financial advisor who can give you professional advice about how to invest wisely and get ahead financially.

Bottom line

Buffett’s stock picks often represent businesses with strong fundamentals, reliable cash flow, and long-term growth potential.

Whether you’re new to investing or looking to make money moves with your portfolio, these Buffett-backed stocks are worth exploring. With careful planning, you can use Buffett’s proven approach to start investing confidently and build wealth over time.

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