At a time when market volatility is rearing its ugly head again, Warren Buffett's Berkshire Hathaway is a great place to find solid investments. Berkshire held a stock portfolio worth $271 billion at the end of 2024. It holds stakes in several quality growth stocks that were either selected by Buffett or one of his investing deputies (Todd Combs or Ted Weschler).
When you can find a Berkshire-held stock that can double in value in five years, it's a no-brainer. These are stocks that have already passed the filter of some brilliant investing minds. Here are two Berkshire holdings that could do just that by 2030.
1. Amazon
Amazon (AMZN 1.20%) stock rocketed 1,000% over the last decade and has doubled in the last five years. Berkshire Hathaway initially bought the stock in early 2019 and still held 10 million shares at the end of 2024.
Warren Buffett and his investing deputies clearly see more growth ahead for Amazon's business. Amazon can drive steady revenue growth from its dominant e-commerce business, while fueling higher margins and earnings growth from other areas to double the share price in five years.
NASDAQ: AMZN
Key Data Points
Millions of Prime members rely on Amazon for everyday essentials, providing consistent revenue from loyal customers. Moreover, management continues to focus on reducing fulfillment costs, which helped the company nearly double its net income to $59 billion in 2024. Amazon's increasing use of robotics to automate tasks in fulfillment centers could drive down costs significantly over the long term and unlock more profits.
Investors can also rely on profitable growth from Amazon's burgeoning cloud business. Amazon Web Services is the leading cloud services provider, generating $107 billion in revenue last year. Amazon's investments in custom processors for artificial intelligence (AI) workloads are bringing great value to enterprise customers in the fast-growing cloud market. Amazon's cloud revenue grew 19% year over year in the fourth quarter and made up half of Amazon's operating profit.
Amazon has great prospects to maintain steady revenue growth while fueling higher profits from growth in the cloud business and lowering costs in the e-commerce operation. It's for these reasons analysts expect the company's earnings to grow 20% on an annualized basis in the coming years. Assuming the stock continues to trade around the same valuation on a price-to-earnings basis, that is enough to double your investment.
2. American Express
American Express (AXP 1.25%) is one of Warren Buffett's top holdings at Berkshire Hathaway, and this premium credit card brand is performing at a high level. After tripling in value over the last five years, the stock could double again based on the company's momentum in signing up new premium card members and expanding across international markets.
NYSE: AXP
Key Data Points
Amex card members are a spend-happy bunch. Card member spending (billed business) accelerated in the fourth quarter, growing 8% year over year. Management previously stated that it can grow earnings at a mid-teens annual rate -- enough to double the stock in five years -- with card member spending growing at 6%.
The momentum stems from the company's success in winning over new card members, especially millennials and Gen Z, who value American Express' premium brand. New card acquisitions increased from 12.2 million in 2023 to 13 million in 2024. This is contributing to higher margins, with net card fees up 17% year over year last year.
Amex is coming off a great year, with double-digit growth in revenue (excluding currency changes) and adjusted earnings per share. But management still sees great potential to expand internationally, where it has low penetration. International card services billed grew 14% in 2024, indicating a monster opportunity.
Berkshire has held American Express stock for more than 30 years. Analysts see the company's adjusted earnings growing at an annualized rate of 15% over the long term. There is plenty of growth left in this Buffett favorite to double your investment by 2030.
