You don't need $1 billion or more to invest like a billionaire. Actually, you can get started with a lot less money.
Warren Buffett, for example, owns plenty of moderately priced stocks in his Berkshire Hathaway (BRK.A -0.76%) (BRK.B -0.69%) portfolio. Here are the three best Buffett stocks to buy with $300 right now, in my view.
1. Amazon
You can pick up a share of one of the most innovative companies in the world -- Amazon (AMZN 3.43%) -- for less than $130. Although that's a far cry from the more than 10.5 million shares of Amazon that Berkshire owns, it's not a bad start.
Amazon's profitability and free cash flow are increasing thanks to recent streamlining initiatives. This could keep the stock's momentum going in the near term even after the huge gains achieved so far in 2023.
Over the long term, Amazon Web Services (AWS) is likely to be a massive growth driver. The rising demand for artificial intelligence (AI) apps could serve as a multi-decade tailwind for AWS.
Amazon will almost certainly continue to expand into new markets as well. The company's launch of its new supply chain services is a great example of how Amazon leverages its internal capabilities to meet the needs of external customers.
But what about the Federal Trade Commission's antitrust lawsuit against Amazon? There's no need to worry. Even if Amazon is eventually broken up (which I personally don't expect will happen), its business units could be worth more separated than they are combined.
2. Bank of America
Bank of America (BAC -0.21%) stands among the least expensive stocks in Buffett's portfolio based on share price. With a price tag of around $26, you could buy several shares of the bank stock plus the other two stocks on our list with an initial amount of $300.
This stock isn't just cheap on a per-share basis, though. Bank of America boasts a really attractive valuation with its forward earnings multiple of under 8x.
The banking crisis and macroeconomic worries are the main culprits behind BofA's dismal stock performance and its bargain valuation. However, the company remains financially healthy and should be able to weather any storms.
It's no accident that Bank of America is the second-largest holding in Berkshire Hathaway's portfolio. Buffett recognizes how good of a business BofA has. So do others, as evidenced by the company's top rankings in U.S. retail deposits, online banking and mobile banking functionality, consumer digital banking, and retail banking advice customer satisfaction.
3. Occidental Petroleum
Buffett really likes Occidental Petroleum (OXY -0.15%) these days. He has steadily scooped up more shares of the oil and gas company in recent quarters. Berkshire now owns over 224 million shares of Oxy valued at close to $14.2 billion. He's likely to add even more to that total. Berkshire secured regulatory approval last year to acquire up to 50% of Occidental, but it currently holds a 25.3% stake.
Occidental is quite affordable for retail investors, too, with its share price hovering around $63. An initial $300 would allow you to buy one share in addition to a share of Amazon and four shares of Bank of America.
Why consider buying Occidental stock? For the same reasons that Buffett is buying it. Valuation stands at the top of the list. Occidental's shares trade at only around 12 times expected earnings.
The demand for oil remains strong, even with the rise of renewable energy sources such as wind and solar. Occidental also has growth opportunities with its direct air capture initiatives, which could suck carbon out of the air.
