2 No-Brainer Warren Buffett Stocks to Buy Right Now

Billionaire Warren Buffett has invested through every sort of market cycle -- from the most flourishing to times of major losses. He's seen his portfolio rise and fall accordingly, but over the long term, Buffett always has come out on top. In fact, over 59 years as chairman of Berkshire Hathaway, he's helped deliver a compounded annual gain of almost 20% -- largely surpassing the S&P 500's compounded annual gain of about 10%.

So, it's logical to have faith in this top investor's stock picks. Buffett favors buying shares of well-established companies with strong competitive advantages -- at reasonable prices. He commits to these players for the long term, and that's proven to be a winning strategy. Of course, some of Buffett's biggest holdings may have gone up in price since the time he originally purchased them, but after recent declines, certain Buffett favorites today are trading at very interesting levels.

It's important to note that concern about President Donald Trump's tariff plan has been weighing on stocks, and companies may face headwinds in the near term. But this doesn't crush the bright long-term picture for many market leaders. With this in mind, let's check out two no-brainer Buffett stocks to buy right now.

Image source: The Motley Fool.

1. American Express

Buffett started growing Berkshire Hathaway's American Express (NYSE: AXP) position in the 1990s and has hung on ever since. The company has a solid moat, or competitive advantage, thanks to its reputation as a premium credit card provider, its established network worldwide, and the perks it offers its card customers. Buffett loves a good moat because it's an element that often keeps a company ahead of rivals.

American Express has proven its strength over time, growing revenue and net income. And it's also maintained this strength during times of uncertainty. For example, even as investors started worrying about economic weakness and the possibility of tariffs on imports earlier this year, American Express' business remained strong. The company's cardholders tend to be high-income people, and this population generally feels less pressure than others during times of economic trouble.

American Express said last week that first-quarter revenue rose 8% to $17 billion and card member spending increased 6%. It said its performance across metrics was consistent with 2024 and in some cases, better. Based on this momentum, the company maintained its guidance for full-year revenue and profit.

Amid the current economic uncertainty, American Express remains strong thanks to its cardholder base, so it makes a great stock to own during good times and bad. And today, trading at only 15 times forward earnings estimates, it's a fantastic bargain for long-term investors.

2. Apple

Even after Berkshire trimmed its position in Apple (NASDAQ: AAPL) last year, this stock remains its top holding. Ironically, Buffett generally doesn't invest much in technology. But Apple has the solid brand moat Buffett likes, quality leadership, and a long track record of innovation and growth. And Buffett is not the only decision-maker at Berkshire Hathaway.

Recently, though, Apple has been looking risky to investors for one particular reason: Much of Apple's production happens in China, a country facing 145% import tariffs from the U.S. Though Trump has exempted electronics, he's said this exemption is temporary. And that means Apple, an importer of products from China and other countries, soon could face higher costs. This remains a risk, though I think it's unlikely the U.S. government and leading technology companies would stand by and allow the U.S. tech industry to sink. It's reasonable to imagine a compromise will be found, one that will limit the negative impact on giants such as Apple.

So, though Apple may suffer in the near term, this market leader still offers investors a bright long-term picture. Apple's installed base of 2.35 billion devices is driving a whole new era of revenue growth and that's through selling services to Apple customers -- from cloud storage to digital content. Thanks to this huge installed base, services revenue has climbed to record levels quarter after quarter.

This means that today, trading for 26 times forward earnings estimates, down from more than 35 times a few months ago, Apple makes a great Buffett favorite to add to your portfolio.

Should you invest $1,000 in American Express right now?

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American Express is an advertising partner of Motley Fool Money. Adria Cimino has positions in American Express. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.