Warren Buffett doesn't like stocks -- at least, not many of them right now. He told Berkshire Hathaway shareholders earlier this month that he finds it "quite attractive" to sit atop a massive cash stockpile instead of buying stocks.
Just because the legendary investor isn't putting Berkshire's money to work doesn't mean you shouldn't put yours to work in the market. And you can find some great candidates within Berkshire's portfolio. Here are three no-brainer Buffett stocks to buy right now.
1. Amazon
Lou Gerstner, who led IBM's comeback in the 1990s, wrote a book years ago titled Who Says Elephants Can't Dance?. I think that title applies well to Amazon (AMZN -0.09%), even though the e-commerce and cloud services giant doesn't need a turnaround like IBM did back then.
Amazon continues to give shareholders plenty to dance about. The stock soared nearly 81% last year. It's up around 20% so far in 2024. I expect the momentum will continue.
One number in Amazon's first-quarter results sums up why investors like the stock so much these days: 229%. That's how much the company's earnings soared year over year in Q1. Amazon is still working hard to increase revenue and reduce its costs further -- the textbook recipe for sustained earnings growth.
I like Amazon's opportunities in digital advertising. But I love its Amazon Web Services business prospects with the ongoing tailwind created by generative AI. Buffett hasn't added to Berkshire's position in Amazon since 2019. However, I think now is a great time to buy shares of this perennial leader.
2. Marubeni
Marubeni (MARUF 2.08%) (MARUY 2.21%) is probably one of the least-followed stocks in Berkshire Hathaway's portfolio. However, it's one of Buffett's favorite stocks. He wrote to shareholders earlier this year that Marubeni is among a select group of stocks he thinks Berkshire will "maintain indefinitely."
Marubeni is a huge Japanese conglomerate. It was founded in 1858 and operates in a wide range of industries, including aerospace, agriculture, chemicals, consumer goods, energy, finance, food, forest products, information technology, metals and mineral resources, and utilities.
Marubeni is one of five Japanese stocks Berkshire bought a few years ago; Buffett likes each company's smart stock buybacks and attractive dividends. Most importantly, though, he appreciates their business models and management teams.
Why did I pick Marubeni out of these five stocks? Valuation. Marubeni's shares trade at roughly 11 times trailing earnings, the cheapest multiple in the group.
3. Occidental Petroleum
I mentioned earlier that Buffett doesn't like many stocks these days. Occidental Petroleum (OXY 0.07%) is a notable exception. He's regularly added to Berkshire's position in the oil producer, including buying another 4.3 million shares in Q1.
Occidental is another stock the Oracle of Omaha thinks Berkshire will own for a long time to come. He likes the company's significant U.S. oil and gas assets and its leadership in carbon capture technology. Buffett also has tremendous respect for Oxy's CEO, Vicki Hollub.
Berkshire's continued purchases of Occidental could help drive the stock higher. The conglomerate secured regulatory approval in 2022 to acquire up to 50% of the company but currently owns only 28%.
That's not the main reason this stock is a no-brainer buy, though. Occidental is reasonably priced with a forward earnings multiple under 15. Hollub predicts an oil supply shortage by late 2025. Even if her timing is off, her reasoning appears to be solid. I look for Oxy to deliver solid gains over the next few years.
