Warren Buffett's Berkshire Hathaway portfolio has drawn attention for decades. Its 20% average annual return since 1965 doubled the performance of the S&P 500.

Despite that performance, not all of the stocks Buffett owns are buys today. Nonetheless, Buffett and his team continue to add stocks. To that end, investors should pay particular attention to five of Buffett's key additions in recent years, all of which are affordable within a $1,000 budget.


Apple (AAPL 1.29%) has become one of the most recognizable brands in the world. Its iPhones, Mac computers, and wearables have become highly desired by consumers, and Buffett came to appreciate the value of these offerings over time. Consequently, it has served both Apple and Berkshire investors so well that it has outperformed the S&P 500 at a time when many tech stocks fell by more than 75%.

Despite its $2.75 trillion market cap, Apple managed to achieve revenue growth in the high single digits in a slowing economy. Moreover, its $191 billion in liquidity gives it one of the most solid balance sheets among public companies. Given those attributes, it is little wonder that Apple stock constitutes more than 40% of Berkshire's portfolio.


Snowflake (SNOW 2.00%) is a fast-growing software stock that stands in contrast to Buffett's more notable investments. It is a high-growth, money-losing stock, having lost $166 million in its fiscal first quarter of 2023 alone. Also, the price-to-sales (P/S) ratio of 36 is outlandish by Buffett's standards and would be much higher were it not for the 40% stock price decline over the last year.

However, its position as the leading data cloud provider could make it the kind of essential offering that Buffett typically likes to see in a company. Moreover, its customer count of 6,300 indicates it has barely scratched the surface of its potential. Between its 40% customer growth year over year and the 74% increase in customer spending over the last year, Snowflake is on track to more than justify its high cost.


Despite an increased focus on clean energy, oil and natural gas make up 68% of U.S. energy use. This benefits Chevron (CVX 0.24%), which derives over 99% of its revenue from these energy sources. Its business is so profitable that it reported $16.7 billion in free cash flow in the first half of 2022.

That cash flow funds a rising dividend stream, a factor that likely attracted Buffett. Its $5.68 per share annual dividend yields 3.6% and has risen for 35 consecutive years. And at a dividend cost of $5.5 billion in the first half of the year, cash flows should support further increases. Moreover, with a P/E ratio of just 11, income investors may want to consider following Buffett's lead.

Bank of America

Buffett's interest in banks is not new. However, the size of his Bank of America (BAC 0.13%) position has grown steadily in recent years. At 10%, it is Berkshire's second-largest position next to Apple. It is also a megabank that has aggressively adopted fintech solutions. CEO Brian Moynihan told Yahoo! Finance last year that the company spends about $3.5 billion per year on technology-driven products and services.

Additionally, the company pays an annual dividend of $0.88 per share, good for a yield of about 2.4%. Its annual payout has risen every year since 2014. Since the cost of this dividend claimed $4.2 billion of its $13.3 billion in net income over the first half of 2022, the payout should easily sustain itself. At 11 times earnings, investors can buy that income stream at a low price.


Despite sluggish e-commerce growth, Amazon (AMZN -1.22%) is one Buffett stock investors may want to buy and hold forever. Its cloud segment, AWS, has driven all of the company's operating income this year even though it makes up only 16% of revenue in the first half of 2022. Moreover, its digital advertising segment continues to grow revenue at double-digit rates.

Still, this potential does not necessarily mean it has been one of Buffett's better-performing investments in recent months. Amazon has fallen by 13% over the last year, and its 127 P/E ratio is hardly cheap.

However, Buffett probably likes AWS' trailing 12-month operating margin of 31%, a stark contrast to the negative margins of its retail segments. According to Grand View Research, cloud infrastructure is expected to grow at a compound annual growth rate of 16% through 2030, a factor that should keep Amazon growing even if e-commerce recovers slowly.