Buffett Top Picks for 2025: Why American Express, Visa, and Amazon Could Outperform the S&P 500

Beating the S&P 500 is no easy feat for any investor, even for the legendary Warren Buffett. However, his long-term track record is nothing short of remarkable. Since taking over Berkshire Hathaway, Buffett has overseen an increase in the company’s value by a staggering 4,384,748%, compared to the S&P 500’s 31,223% gain by the end of 2023.

While Buffett may not replicate this level of success every year, his strategy provides valuable insights. If you’re looking to invest in stocks that could outperform the market, Buffett’s portfolio is a great place to start. Here are three Buffett-backed stocks—American Express, Visa, and Amazon—that could deliver impressive returns in 2025.

American Express: A Resilient Financial Powerhouse

American Express (AXP) is one of Berkshire Hathaway’s longest-held stocks, now the conglomerate’s second-largest equity position. What sets American Express apart is its closed-loop credit card network, meaning it operates as its own bank. This allows it to offer a differentiated service with a loyal, affluent customer base and a wide range of banking products, making it much more than just a credit card company.

In 2024, American Express saw a 9% year-over-year revenue growth, while earnings per share (EPS) surged by 28%. The company’s business model, which includes card fees and net interest income, aligns with Buffett’s preference for multifaceted businesses. American Express also saw a 58% stock increase in 2024, and with inflation cooling down, it stands to benefit from increased credit card activity and a favorable interest rate environment in 2025.

Visa: The Global Payment Network

Although Buffett holds a small position in Visa (V), the company is a key player in the global economy. As the largest credit card network in the world, Visa facilitates transactions globally, making it a critical part of the financial infrastructure. Visa’s business model is capital-light, and it enjoys impressive profit margins, reaching 55% in fiscal 2024. Its revenue grew by 10%, and EPS was up 17%.

Visa is continuously expanding its product offerings and partnerships, ensuring its long-term relevance in the market. While Visa didn’t outperform the S&P 500 in 2024 (gaining 22% versus 25%), it has consistently been a market-beater over time. With inflation moderating and consumer spending potentially increasing, Visa could surpass market growth in 2025.

Amazon: Dominating E-commerce and Cloud Computing

Amazon (AMZN) may be one of Buffett’s smaller positions, but it has been a massive winner since he first invested in it in 2019. In the years since, Amazon’s stock has gained over 130%, outpacing the S&P 500’s 97% growth. The company leads the e-commerce market in the U.S. and dominates the cloud computing space globally. However, its most exciting growth opportunity now lies in generative artificial intelligence (AI).

CEO Andy Jassy has described AI as the largest opportunity in technology since the rise of the cloud, and even the Internet. With 85% of global IT spending still going toward on-premises systems, Amazon is well-positioned to capitalize on the shift to the cloud, with generative AI already generating billions in revenue. Amazon’s stock gained 44% in 2024, and its potential in AI and the cloud makes it a strong contender to outperform the market in 2025.