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3 Warren Buffett Stocks to Buy in November

By Keith Speights – Oct 31, 2021 at 7:31AM

Key Points

  • Amazon.com still operates with a startup mentality despite its tremendous past success.
  • Apple's Q3 sales miss reflects only temporary headwinds that don't compare to its long-term tailwinds.
  • Mastercard is a fintech leader that's cementing its leadership in new financial arenas.

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They're all big winners in recent years that are poised to be even bigger winners over the long term.

You could probably sum up the secret to Warren Buffett's success in three words: Think long term. That's what the legendary investor has done throughout his storied career -- even before he took the helm at Berkshire Hathaway (BRK.A 0.49%) (BRK.B 0.37%).

It's also exactly what anyone should do when contemplating buying any of the stocks in Buffett's own portfolio. The best of those Berkshire holdings have strong long-term growth prospects. With that in mind, here are three Buffett stocks to buy in November.

Warren Buffett with people in the background.

Image source: The Motley Fool.

1. Amazon.com

Amazon.com (AMZN 1.87%) founder Jeff Bezos likes to say that "it's still Day 1." By that, he means that the company retains the mentality of its first day as a start-up. This is the kind of guiding philosophy that could propel this FAANG stock much higher even though Amazon's market cap already tops $1.7 trillion.

There's actually a good reason for investors to think about Amazon with a "Day 1" perspective as well. Sure, the company reigns as the 800-pound gorilla in e-commerce. However, U.S. e-commerce sales in the second quarter of 2021 made up only 12.5% of total retail sales. Amazon still has huge growth potential in this core market.

The company has even more opportunities with Amazon Web Services (AWS). This cloud business remains a tremendous growth driver despite intensifying competition. 

And it truly is Day 1 for Amazon in multiple other areas. The company launched its telehealth service this summer. It recently rolled out its first robot -- a dog named Astro. Amazon also has the potential to expand in video games, self-driving car technology, and more. 

2. Apple

One thing Buffett never does is obsess about one quarterly update. That's a lesson every investor should follow, especially in the case of Apple's (AAPL 0.20%) fiscal 2021 fourth-quarter sales miss. 

Sure, Apple didn't generate the revenue that Wall Street expected. However, the problem was supply constraints caused by a global chip shortage and manufacturing disruptions in Southeast Asia due to COVID-19. Those are only temporary issues. And Apple still managed to grow revenue 29% year over year despite the headwinds.

More important, the company's long-term prospects remain strong. Apple's iPhone ecosystem is as sticky as ever. Its services business is especially gaining momentum. The increased adoption of high-speed 5G networks continues to fuel demand for the company's products. Over the next decade, I expect that augmented reality will become another major growth driver for Apple's ecosystem.

The current chip shortage and COVID-19's impact on manufacturing won't matter in the near future. You can bet that Buffett isn't selling any of his Apple shares on the latest pullback. I wouldn't be surprised if he's instead buying more of the top stock in Berkshire's portfolio.

3. Mastercard

Unlike Apple, Mastercard (MA -0.07%) beat expectations in its latest quarterly update. The financial services giant delivered 30% revenue growth with earnings soaring 59%. 

Again, though, the snapshot of what the company has already done isn't nearly as critical as what its future prospects are. And Mastercard's future still looks very bright, particularly with several new initiatives.

Mastercard Installments puts the company at the center of the fast-growing "buy now, pay later" opportunity. The new service can be used anywhere across the Mastercard network, both online and in stores. 

The company's acquisition of CipherTrace bolsters its expansion of cryptocurrency services. Its pending buyout of European technology provider Aiia extends Mastercard's efforts in leading the way in open banking, which enables consumers and businesses to use their data to get financial services easily and securely. 

These new products and deals reinforce the key role that Mastercard plays in the transition from cash to digital payments. Mastercard is a Buffett stock that you can buy in November and hold forever.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights owns shares of Amazon, Apple, Berkshire Hathaway (B shares), and Mastercard. The Motley Fool owns shares of and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Mastercard. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.

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