I'll admit that I've sometimes succumbed to "analysis paralysis" in the past. When faced with an investment decision, I hemmed and hawed for way more time than I should have.
With the current market conditions, there are probably plenty of investors experiencing a similar condition right now. Warren Buffett himself acknowledged recently that he and his investing team "find little that excites us."
However, there are some stocks that I think shouldn't need over-analysis before buying. A few of them are even in Buffett's investment portfolio. Here are three Buffett stocks I'd buy without any hesitation.
Image source: The Motley Fool.
1. Berkshire Hathaway
Berkshire Hathaway (BRK.A -0.53%) (BRK.B -0.85%) stands at the top of my list. I don't include it merely because it's where most of Buffett's own money is invested, though. My take on Berkshire is that it's almost like an exchange-traded fund (ETF). You can get a diversified basket of stocks in one fell swoop. That diversification can lower your risk.
When you buy Berkshire, you become a part-owner in more than 60 businesses that are part of the Berkshire family. These include businesses such as Geico, Duracell, and railroad giant BNSF. But you also get a position in the 40 or so stocks that Berkshire owns.
I like that purchasing shares of Berkshire gains access to two of the greatest investing minds of all time -- Buffett and his longtime business partner Charlie Munger. The company also has two other solid investment managers (Todd Combs and Ted Weschler) who have expanded Berkshire's horizons.
Last, but certainly not least, Berkshire has proved to be a winner. The stock has outperformed the S&P 500 index over the past one, three, and 10 years. I expect that Berkshire will keep up its winning ways.
2. Amazon.com
Buffett was really late to the part in buying Amazon.com (AMZN -1.00%) for Berkshire's portfolio. However, the old saying that "better late than never" is right in this case. I wouldn't have to think very long before buying the stock now.
For one thing, e-commerce still has a lot of room to run. Last year, e-commerce sales in the U.S. accounted for only 13.2% of total retail sales. I fully expect that percentage to grow, with Amazon leading the way.
However, Amazon's biggest growth driver is Amazon Web Services (AWS). Sales for AWS soared nearly 40% year over year in the fourth quarter of 2021. And the cloud unit is a lot more profitable than Amazon's e-commerce business.
I also love how Amazon continually looks to expand into new markets. The company's recent acquisition of MGM makes its Prime Video service even more formidable in streaming. Amazon is also a rising force in healthcare and self-driving car technology. All of these are areas that should grow tremendously in the future.
3. AbbVie
Buffett sold some of Berkshire's stake in AbbVie (ABBV -0.85%) in the fourth quarter of 2021. That proved to be a mistake -- at least over the short term. The pharma stock has jumped 19% year to date while many stocks have floundered.
I think that AbbVie's long-term prospects look good, too. Sure, the company faces the loss of U.S. exclusivity next year for its top-selling drug, Humira. However, AbbVie's management team says it expects to quickly return to solid growth. I believe the team is right.
AbbVie already has two successors to Humira on the market. Rinvoq and Skyrizi should help offset much of the anticipated sales declines on the way for Humira. The company also has several other growth drivers, including blood cancer drug Venclexta and antipsychotic drug Vraylar.
Don't forget AbbVie's juicy dividend. The company's dividend currently yields 3.5%. AbbVie is a Dividend King with 50 consecutive years of dividend increases. I look for the company to keep that streak going with more dividend increases in the future.
