Every of those firms has sturdy long-term alternatives.
Warren Buffett stays on the helm of Berkshire Hathaway for a couple of extra months, however his legacy solidifies him as one of many best traders of all time.
The Oracle of Omaha made few adjustments to the Berkshire Hathaway fairness portfolio in one among his final quarters as its chief, and his favourite shares stay the anchors. A lot of them nonetheless provide great alternative. I believe Amazon (AMZN -0.00%), American Categorical (AXP -0.73%), and Domino’s Pizza (DPZ 0.20%) appear to be no-brainer shares to purchase at this time.
Picture supply: The Motley Idiot.
1. Amazon: AI and extra
Amazon has an enormous, multi-pronged enterprise that companies people and companies in quite a few methods, making it an essential participant within the financial system. It is coming near being the biggest firm on this planet by gross sales, giving it a leg up on any competitor.
E-commerce gross sales should not often one among its higher-growth segments, however they have been sturdy within the 2025 second quarter, up 11% 12 months over 12 months. So though the market nonetheless appears to be nervous about tariffs, to date, they’ve had the unintended impact of customers stockpiling items early in case tariffs make them dearer sooner or later down the road. Though that is nonetheless unsure, administration has identified that its collection of merchandise and diverse suppliers present it with energy even when tariffs impression its suppliers from China.
Amazon’s investments in synthetic intelligence (AI) and robotics present it with additional methods to hurry up deliveries. One instance is that AI improved robotic journey effectivity by 10%, which over Amazon’s huge community has large-scale results. It added 1,000 new areas the place it provides similar and next-day deliveries within the second quarter, and it is planning on including 4,000 extra.
The most important alternative for Amazon at this time is in AI by its cloud enterprise, Amazon Net Companies (AWS). AWS is by far the main cloud firm on this planet, and administration is investing in growing its AI enterprise to retain that title. It is releasing its personal highly effective chips for purchasers to entry AI instruments by its Bedrock program, and it is launching extra instruments that make it even simpler to create sturdy AI purposes.
Then after all there’s promoting, streaming, and Amazon’s different companies that present long-term alternative. Amazon nonetheless has an extended development runway, and it is a no-brainer inventory for nearly any portfolio.
2. American Categorical: Resilient customers
American Categorical has a differentiated mannequin that is fee-based and focuses on an prosperous shopper, and that is led to sturdy efficiency regardless of a pressured financial system. Income elevated 9% 12 months over 12 months within the second quarter, with report cardmember spending. There’s additionally sturdy demand for its premium playing cards, which include an annual payment and create a recurring income stream. It added 3.1 million new playing cards within the second quarter, with about half of them U.S. shopper playing cards. Sixty-three p.c of worldwide additions have been millennials and Gen Z, youthful cohorts that can drive future development, and 71% of recent accounts have been for fee-based merchandise. Payment income elevated 20% 12 months over 12 months within the second quarter and accounted for nearly 14% of whole income.
The give attention to a resilient, upscale shopper base together with sturdy danger administration additionally ends in best-in-class credit score metrics. Amongst millennials and Gen Z customers, previous dues have been 1.9% versus 4.4% for the business within the second quarter, and 1.3% for Gen X and child boomers versus 3.1% for the business.
The corporate has a closed-loop mannequin, which suggests it funds its personal credit score and it additionally provides a big array of banking companies to its customers. That provides it lots of money to take a position and use to fund its enterprise, and internet curiosity earnings elevated 12% over final 12 months within the second quarter.
American Categorical is one among Buffett’s oldest shares, and since Berkshire Hathaway has been promoting Apple and Financial institution of America, American Categorical now accounts for 15.8% of the portfolio, the second-largest place.
3. Domino’s: Everybody’s favourite takeout
Pizza is a giant enterprise, and Domino’s is the largest pizza firm. That is a function Buffett appreciates, as a result of once you’re the biggest operator in an area that everybody wants (like Coca-Cola or Visa, two of his different shares), that already provides you an edge. So whereas Domino’s is pretty new to the Berkshire Hathaway portfolio, it suits proper in.
CEO Russell Weiner described Domino’s as having “what we consider are best-in-class unit economics, the biggest promoting price range, a strong provide chain, and a rewards program that’s larger than ever.” That builds on its capacity to strengthen its moat and preserve its dominant place.
There’s loads of room to develop even on the prime. Domino’s has greater than 21,000 shops globally, however it’s all the time including extra. It opened 178 internet new shops within the 2025 fiscal second quarter (ended June 15) and greater than 600 over the trailing 12 months. However the investments in promoting and the rewards program are resulting in larger comparable gross sales as properly. And since pizza is reasonable quick meals, it is resilient when there’s inflation. Domino’s has been capable of enhance costs to offset growing prices, ensuring the underside line continues to be sturdy, too.
Domino’s might not be the highest-growth firm or inventory, however it’s more likely to preserve gaining and reward shareholders for years.
Financial institution of America is an promoting accomplice of Motley Idiot Cash. American Categorical is an promoting accomplice of Motley Idiot Cash. Jennifer Saibil has positions in American Categorical and Apple. The Motley Idiot has positions in and recommends Amazon, Apple, Berkshire Hathaway, Domino’s Pizza, and Visa. The Motley Idiot has a disclosure coverage.
