Warren Buffett has now retired, but he has left a legacy of great stock picks. He was at the helm when Sirius XM Holdings (SIRI 1.20%), Nu Holdings (NU +2.29%), and Amazon (AMZN 3.74%) became part of the Berkshire Hathaway (BRK.A 2.13%) (BRK.B 1.89%) holdings.
They continue to be part of the more than three dozen stocks in Berkshire Hathaway's public portfolio. Berkshire Hathaway stock carries a big price, but you can may want to consider buying into some of these actual holdings. A $500 investment can you between two and 24 shares in these three investments.
Image source: Getty Images.
1. Sirius XM Holdings
Investors have been unloading Sirius XM. The stock has surrendered nearly two-thirds of its value over the past three years. You know what Berkshire Hathaway was doing in those three years with Buffett still calling the shots? It was a buyer. It now owns 37.1% of the total shares outstanding.
The country's lone satellite radio provider is out of favor, but it checks many of the boxes that excite value investors. Growth has been in short supply these days, but the platform is a money machine. The media stock tops $1 billion in annual free cash flow, year after year.
NASDAQ: SIRI
Key Data Points
Revenue has declined modestly, less than 3% in each of the past three years. The silver lining is that Sirius XM remains highly profitable, with a trailing net profit margin of 11.6%. It packs one of the more generous payouts among Berkshire Hathaway holdings, with a current dividend yield of 5.3%.
And it has enough breathing room to continue boosting those distributions. You're buying Sirius XM today at a forward earnings multiple of 6.6, and that's not a typo. Either the stock rises from here or the yield does.
The one thing that can get Sirius XM moving higher again is a return to top-line growth. Churn has been historically low on the platform. The problem has been getting more listeners into its free trial funnel, particularly younger drivers. It's working on that, striking deals with many of the premium podcasters that have been magnetic with the younger demographic that Sirius XM is currently lacking. Signing a new three-year deal with Howard Stern will keep its loyal customers close. If it succeeds in casting a wider net, the scalability should help reverse the declines of the past few years.
NYSE: NU
Key Data Points
2. Nu Holdings
There hasn't been much love for stateside fintech stocks lately, but the appetite and opportunities are greater if you travel overseas. Nu Holdings is the parent company of Nubank, which has exploded in Brazil despite launching its credit card and digital banking platform only 12 years ago. If you know someone in Brazil, there's a good chance that that person is a Nubank customer. More than 60% of Brazil's adult population has an account.
Nu Holdings stock stands out from the fintech names that you're more familiar with through its superior growth. Revenue rose a better-than-expected 39% in its latest quarter. Adjusted net income climbed 38%. Despite this brisk growth -- and emerging growth opportunities in Mexico and Colombia in play -- you can buy Nu for less than 20 times this new year's analyst profit target. It's growing twice as fast as that multiple.
NASDAQ: AMZN
Key Data Points
3. Amazon
The holidays have come and gone, and you probably spent a lot of time and a good chunk of change on Amazon. The leading online retailer will let investors know just how much we collectively spent on the e-commerce platform in two weeks, but Amazon is about so much more than just its digital storefront.
There's Amazon Web Services (AWS), the cloud-hosting business that accounted for 22% of its total net sales in its latest quarter, but also a whopping 66% of its operating profit. There's also advertising, a business accelerating in recent quarters. It's growing roughly twice as fast as the flagship e-commerce business.
Finally, let's show some love to Rufus. This is Amazon's AI chatbot. Rufus interactions more than tripled in 2025. This is a way to make its legacy business stickier, and Amazon thinks Rufus is currently generating $10 billion in incremental annualized net sales.
Amazon stock isn't as cheap as Sirius XM and Nu. You're paying 30 times forward earnings for the e-tail bellwether. However, Amazon's brand is iconic. Revenue is slowly starting to accelerate, and it has a monster in AWS, in a niche that trades at a healthy market premium. If you're shopping for stocks, it's not a bad idea to consider where you actually shop.
