2 Warren Buffett Growth Stocks to Buy Right Now

Investing in strong consumer brands with excellent earnings growth prospects is a proven strategy for building wealth in the stock market. Warren Buffett patiently held shares of growing companies to create enormous wealth for Berkshire Hathaway (NYSE: BRK.A) (New York Stock Exchange: BRK.B) shareholders, and this approach can work for you too.

Here are two Berkshire stocks that could double your money within five years.

1. Amazon

Berkshire owned 10 million shares Amazon (AMZN 0.30%) in the second quarter and has maintained its position as the e-commerce leader since 2019. Amazon appears to fit neatly with the range of other leading consumer brands that Buffett favors, including Berkshire’s large stakes in Apple And Coca-Cola. Amazon has a legion of more than 200 million Prime members, as well as a growing data center and fulfillment infrastructure that give the company a major advantage over its competitors.

Amazon may never be able to match the likes of Costco or Walmart in physical retail, but these retailers have a long way to go to match Amazon’s leadership in creating a same-day delivery network for online shoppers. Amazon ended 2023 with an impressive 627 million square feet of fulfillment centers, data centers and other facilities.

Amazon has increased its footprint by more than 224 million square feet since 2020. The company has a significant infrastructure advantage over its competitors, allowing it to capture a US e-commerce market share in 2023 that is six times that of its next-ranked company. closest competitor, according to Statista.

Amazon is reported to be investing in new industrial facilities to build out its infrastructure. Of course, the company is investing not only in expanding its retail delivery network, but also in bolstering its cloud computing business. Amazon Web Services (AWS) has seen accelerating growth this year as companies continue to migrate their data systems to the cloud. AWS contributed most of Amazon’s $14.7 billion operating profit in the second quarter.

This is an incredibly strong company that continues to invest in strengthening its competitive advantage. Analysts expect Amazon’s earnings to grow at an annual rate of 22% and the stock to continue to trade within its historical price-to-sales or price-to-earnings valuation ranges. Overall, Amazon investors expect excellent returns prospects in the coming years.

2. American Express

American Express (AXP 1.54%) is one of four Berkshire holdings that were worth at least $25 billion in the second quarter. He owned a stake in American Express for more than 30 years. It’s another example of how well-established the leading brand that Buffett tends to favor is in its market.

The stock has risen to new highs this year, helped by strong business growth. In the third quarter, total card member spending increased 6% year-over-year, contributing to an 8% increase in net revenue. The company reported 3.3 million new card purchases last quarter following the recent launch of new products, including a new gold card in the US.

American Express has every reason to be considered the strongest of the major credit card brands. People are willing to pay fees to use the American Express card because of the benefits that card membership comes with, including access to special airport lounges, discounts at select retail brands and excellent customer service. These benefits help drive cardholder spending and encourage merchants to pay brand adoption fees at checkout, a key source of revenue for the company.

Moreover, American Express continues to gain traction among millennials and Gen Z, which is a great sign for its long-term growth prospects. These younger customers made up 80% of new accounts purchased with the new US Gold card last quarter and remain the fastest-growing group for the company.

The stock continues to trade at a reasonable price that could support new highs in 2025 and beyond. Wall Street analysts expect earnings to grow at an annualized rate of 15%, enough to potentially double the share price within five years. It’s no surprise that Buffett continues to hold American Express shares in his Berkshire portfolio.