American Express has a closed-loop model that makes money under varying conditions.
Coca-Cola is one of the highest-yielding Dividend Kings you can buy.
Nu has incredible opportunity as it targets new populations in different regions.
Investors look to Warren Buffett for advice in any market, but listening to his wisdom can help people get through tough times, like today's market, with calm and clarity. His impressive and almost unmatched track record gives him clout. Berkshire Hathaway's market value per share has increased more than 5,500,000% from 1965 (when he took over) to 2024, crushing the S&P 500, which gained 39,000% over the same time.
The average individual investor doesn't necessarily have the same investing goals as Berkshire Hathaway, which is a huge holding company that owns more than 180 businesses, and has an equity portfolio worth more than $276 billion. But any investor can learn from Buffett's ways and buy amazing stocks that can help them meet their own investing goals.
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If you're looking for amazing stocks to buy right now, I recommend American Express (NYSE: AXP), Coca-Cola(NYSE: KO), and Nu Holdings(NYSE: NU) as top Buffett stocks that each offer something different.
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1. American Express: The contrarian stock
American Express has emerged as a hot stock over the past year, but it wasn't always like that. Buffett originally bought it in 1991, making it Berkshire Hathaway's second-longest-held stock behind Coca-Cola. Buffett loves it for many reasons, and he understood, and still understands, why it has long-term value. He is a huge proponent of the "slow and steady wins the race" model, and American Express is withstanding the test of time.
The company has a unique, closed-loop operating model where it funds its own credit cards, unlike rival networks that work with partnering issuing banks. Although there are merits to the other model, American Express enjoys many advantages, such as greater control over the process, a targeted approach to financial services, and -- probably most crucial -- varied sources of revenue.
Since American Express has its own bank, it makes money in more ways than taking a fee from merchants for using its credit card network. It also acts as a hedge under different circumstances, since it makes higher net interest income when interest rates are high, even though consumer spending tends to slow down at those times.
Despite years of inflation, high interest rates, and general economic volatility, American Express is demonstrating phenomenal performance. Even as these ongoing trends are starting to weigh on more and more companies, American Express delivered an excellent 2025 first quarter. Revenue adjusted for currency and a leap year increased 9% year over year, as did earnings per share (EPS). As a global company, it could be better protected against tariffs.
Coca-Cola is Buffett's longest-held stock. Although it doesn't usually beat the market, it's crushing it right now, up 17% while the market is down 5%. These are the times when the market recognizes the company's strengths and stocks up on it.
It's the largest beverage company in the world, selling products that people everywhere love and need. Although the core Coca-Cola branded products are its cash cows, the company is always innovating to meet demand and stay in its top position. It's also highly profitable, and it has incredible pricing power.
What investors are seeing right now is that management isn't worried about tariffs. The CEO confirmed in the first-quarter earnings call that he doesn't expect them to have a huge effect on the business, making it a tariff-resistant investment in a market that's still in turmoil.
Finally, Coca-Cola is a Dividend King, and it's been paying and raising its dividend for 63 years. That's through almost every type of economic cycle and global event, making it as rock-solid as any dividend. It's also higher-yielding than most Dividend Kings, yielding 2.7% at the current price.
3. Nu: The growth stock
Nu is a rare Buffett growth stock, although it fits his general strategy in a number of ways. It's a bank that's flush with cash, and it plays an active role in its region's economy.
It's all online, and it's hitting a chord with the populations in its three operating countries of Brazil, Mexico, and Colombia, where there are high barriers to entry in the traditional finance system. It's reporting high membership growth, revenue, net income, and just about every other metric.
In the 2024 fourth quarter, Nu added 4.5 million new members for a total of 114.2 million. Revenue increased 50% year over year to $3 billion, and net income increased 53% to $552.6 million.
Most of its business still comes from its home country of Brazil, but the opportunity is enormous as it gets its feet wet in its other markets. The company also still has plenty of room to grow in Brazil as it newly targets an upmarket clientele and cross-sells new products to existing customers.
Nu stock trades at a forward, 1-year P/E ratio of 16, a bargain price for a top growth stock.
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American Express is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in American Express and Nu Holdings. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.
