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Warren Buffett Invested $25 Billion of His Portfolio in 2 Stocks That Could Rise 37% and 14% in 2024, According to a Pair of Wall Street Analysts

Warren Buffett Invested  Billion of His Portfolio in 2 Stocks That Could Rise 37% and 14% in 2024, According to a Pair of Wall Street Analysts


If you want your investment portfolio to outperform like Warren Buffett’s, it’s important to hold stocks for long periods of time like he does. When asked what the ideal holding period is for stocks he adds Berkshire HathawayIt is (NYSE:BRK.A)(NYSE:BRK.B) stock portfolio, the Oracle of Omaha confidently says “forever” to anyone who will listen.

No matter how long you hold a stock, the price you pay affects the strength of your returns. If you want to invest like Buffett, buying stocks at opportune times is an important part of the strategy.

Warren Buffett Invested  Billion of His Portfolio in 2 Stocks That Could Rise 37% and 14% in 2024, According to a Pair of Wall Street Analysts

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This could be a great time to acquire a pair of Buffett stocks. At recent prices, $24.6 billion of Berkshire’s stock portfolio is invested in two companies that Wall Street has its eye on. Price targets recently updated by a few analysts at Citi suggest these stocks could rise 37% and 14% over the next 12 months.

1. Amazon

Buffett cut Berkshire’s Amazon (NASDAQ:AMZN) stake of about half a million shares in the third quarter and retained even 10 million. Ronald Josey, a sell-side analyst at Citi, probably thinks Buffett should have kept the entire position.

Amazon shares are up about 83% this year, but Josey thinks it could get even higher. He recently raised his price target on Amazon to $210, implying a 37% gain over the next 12 months.

Josey is encouraged by Amazon’s dominant position in the US e-commerce industry. Its third-party retailers are bound by their relationship with Amazon, as evidenced by the surge in advertising sales. On top of its standard acceptance rate, Amazon was able to secure an additional $12.1 billion in advertising payments from third-party merchants in the third quarter. That’s up 26% from the previous year, and it’s not the only significant growth driver for the company right now.

Amazon Web Services (AWS) is the largest US cloud services provider and its growth has been resilient this year despite a challenging macroeconomic environment. AWS’ third-quarter revenue grew 12% year-over-year to $23 billion, and this segment has plenty of room to run. The global cloud services market reached $484 billion in 2022 and is expected to grow 14.1% annually until 2030.

2. Coca-Cola

It didn’t start out that way, but with over $23 billion, Coca-Cola (NYSE:KO) is currently the fourth largest Berkshire Hathaway stock holding. Coca-Cola shares are down about 8% in 2023, but Citi analyst Filippo Falorni expects a rebound in 2024. He recently raised his price target for the stock to $67 per share , implying a 14% gain over the next 12 months.

The constantly increasing dividend payouts are the main attraction of this stock. In February, Coca-Cola increased its payouts for the 61st consecutive year.

With exactly 400 million shares in its portfolio, Berkshire is on track to receive more than $736 million in dividends from Coca-Cola in 2024, assuming it maintains its long streak.

Fears that increasingly popular weight management drugs, such as Mounjaro, could boost sales of sugary sodas are putting Coca-Cola’s share price under pressure. The fear seems exaggerated. The volume of cases in North America did not increase in the third quarter, but it did not decrease either.

Is it time to buy?

Amazon offers a chance to make big gains with some great companies. Amazon Web Services is the world’s largest provider of cloud services and its e-commerce operations have logistics capabilities that its competitors can only dream of.

Although Amazon has plenty of room for growth, many successes are already priced into its stock. It trades at a nosebleed-inducing multiple of 94 times. free movement of capital. If earnings don’t rise sharply over the next few years, the stock could collapse. If you don’t have a high risk tolerance, it’s probably best to watch from a safe distance.

With some of the most recognized brands on the planet, Coca-Cola has all kinds of pricing power that allows it to overcome a long-standing trend toward less consumption of sugary sodas. Ignoring the negative effects of a stronger dollar, third-quarter revenue increased 11% year-over-year.

At recent prices, Coca-Cola shares yield 3.1%, and likely much more by the time you’re ready to retire. For most investors, adding a few stocks to a diversified portfolio in 2024 and holding them for the long term isn’t a bad idea.

Where to invest $1,000 now

When our team of analysts has a stock tip, it can pay to listen. After all, the newsletter they’ve been running for two decades, Motley Fool Stock Advisormore than tripled the market.*

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Cory Renauer has positions at Amazon. The Motley Fool holds positions and recommends Amazon and Berkshire Hathaway. The Motley Fool recommends the following options: Long January 2024 $47.50 calls on Coca-Cola. The Mad Motley has a disclosure policy.

Warren Buffett invested $25 billion of his portfolio in 2 stocks that could rise 37% and 14% in 2024, according to two Wall Street analysts. was originally published by The Motley Fool



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