Two Strong Stocks to Invest in 2025: Amazon and Berkshire Hathaway

Investing in growth stocks can significantly enhance your savings over time, provided you select the right companies. In this article, we explore two robust firms that are considered top choices for long-term investment: Amazon (NASDAQ: AMZN) and Berkshire Hathaway (NYSE: BRK.A, BRK.B).

1. Amazon

Amazon stands as one of the most valuable companies globally, with a market capitalization of approximately $2.46 trillion. While some may question the potential for further stock price appreciation, Amazon is actively pursuing enormous growth opportunities that could propel its success for years to come.

The company boasts over 200 million Prime members, generating consistent revenue through loyal customer engagement. In the third quarter, Prime subscriptions surged as Amazon improved its delivery options, achieving record-fast service thanks to substantial investments in same-day delivery capabilities. In the previous year, online store revenue reached $242 billion, but this represents just a fraction of the expansive global e-commerce market, which is estimated to exceed $6 trillion and continues to grow, as reported by eMarketer.

However, Amazon's business is not limited to e-commerce. Its cloud computing segment, although accounting for just 17% of total revenue, plays a pivotal role in generating the majority of the company's operating profits. The revenue from cloud services grew in 2024, thanks in part to Amazon's initiatives to provide innovative artificial intelligence tools, enabling organizations to create custom applications.

With its significant presence in both online retail and cloud services, Amazon is seen as a dependable investment for long-term savings. According to forecasts from Yahoo! Finance, revenues are anticipated to grow by 11% in 2025. Over the coming years, enhanced profit margins could drive annual earnings growth of 22%, based on analysts' expectations. This indicates the potential for remarkable returns for Amazon investors in the next five years.

2. Berkshire Hathaway

When it comes to building wealth over time, few stocks are as resilient as Berkshire Hathaway. Warren Buffett acquired a controlling interest in this once-struggling textile company more than 50 years ago and has since transformed it into a conglomerate encompassing some of the world's top businesses.

Since taking charge in 1965, Buffett has elevated Berkshire Hathaway from modest beginnings, where it held only $920,000 in cash in 1964, to a financial powerhouse with over $320 billion in cash and U.S. treasury bills at the end of the third quarter.

This substantial cash reserve enables Buffett to seize lucrative investment opportunities whenever they arise. On top of that, Berkshire Hathaway's diverse operational sectors, including insurance, transportation, energy, and retail, produced $37 billion in operating income in 2023.

Berkshire Hathaway also retains significant investments in major companies, particularly Apple, Coca-Cola, and American Express. Recently, the value of its holdings in these three major stocks was reported at $139 billion, within a total equity portfolio valued at $271 billion.

In the last five years, shares of Berkshire Hathaway have doubled. However, some investors may wonder about the company's future following Buffett's eventual departure. To address this concern, Buffett has prepared Greg Abel, who currently oversees Berkshire's non-insurance divisions, to step into the CEO role when needed. Buffett has expressed confidence in Abel's readiness and ability to make crucial investment decisions.

Investing in Berkshire Hathaway means supporting not just a collection of companies, but also the capable individuals managing them. This characteristic is why Berkshire Hathaway's stock is expected to continue rewarding investors well beyond Buffett's leadership.

investment, stocks, growth