We recently compiled a list of the 10 Best Warren Buffett Stocks to Buy Right Now. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against the other Warren Buffett Stocks.

Warren Buffett is one of the most successful investors the world has known. Additionally, he is arguably one of the strongest supporters of long-term investing. Buffett uses his hedge fund, Berkshire Hathaway, to invest in solid businesses, and he frequently keeps such stocks for years or even decades.

Warren Buffett wagered $1 million in 2007 that the broader market index fund would outperform a group of hedge funds over ten years. Buffett’s preferred Vanguard Index Fund Admiral Shares produced average yearly returns of 7.1%, despite the 2008 financial crisis, compared to the average of the hedge funds of 2.2%. While hedge funds only reached $121,000 by 2016, a $100,000 investment in Vanguard grew to $185,000. The primary issue was fees, with hedge funds’ 2% management fees and 20% profit share reducing earnings compared to index funds’ 0.03% fees. Buffett’s straightforward approach, supported by inexpensive investing, far outpaced pricey active management.

Warren Buffett made it clear in his 2025 shareholder letter that Berkshire is not abandoning stocks, even though some analysts claim that the company has a record $334 billion in cash that it is reserving. Buffett tells shareholders,

“Despite what some commentators currently view as an extraordinary cash position at Berkshire, the great majority of your money remains in equities. That preference won’t change.”

Buffett’s longtime belief that equities, which represent ownership in successful companies, are still the best way to build wealth over the long run is reflected in this position. He cautions against turning to cash or bonds, particularly in inflationary times when bond returns lag behind price increases and the currency depreciates.

Buffett’s value investing concepts remain intact even as markets shift. He draws attention to the company’s growing stakes in five significant Japanese trading firms, which represents an exceptional but purposeful venture into international stocks. He mentioned that after reviewing the financial records, they were surprised by how undervalued the stocks appeared. Despite some of these equities declining by as much as 24% over the past year, he regarded these downturns as investment opportunities rather than reasons for concern. He also emphasized that their holdings in these five companies were intended to be long-term investments.

Buffett’s conviction that patient investors will eventually be rewarded by undervalued companies with solid fundamentals is seen in Japanese investments. He commends these businesses for their prudent capital management, shareholder-friendly practices, and fair executive pay. Buffett’s strategy highlights a key idea in value investing: if the underlying company is favorable, short-term price volatility doesn’t matter. Buffett has shown throughout his career that he does not hesitate to look for bargains, even if they are located outside of the United States.

The route to success continues to be apparent for investors who want to follow in Buffett’s footsteps: own up to your mistakes, stick with profitable assets like equities, and patiently invest where value is present despite short-term noise.

Methodology

For this article, we scanned Warren Buffett’s Q4 2024 portfolio. From the resultant dataset, we chose 10 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of over 1,000 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock’s revenue growth (year-over-year) as a tiebreaker in case two or more stocks have the same number of hedge funds invested.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Amazon.com Inc. (NASDAQ:AMZN)

Number of Hedge Fund Investors: 339

Amazon.com, Inc. (NASDAQ:AMZN) is the Best Warren Buffett Stock because it controls the markets it services, especially in e-commerce and cloud computing. It has a lot of benefits over its rivals and has emerged as the clear leader in e-commerce because of its scale and reach, which provide clients with an unmatched selection of affordable products. Despite its size, the company continues to increase its market share, showing the secular trend toward e-commerce. Prime not only integrates Amazon’s e-commerce efforts but also offers a steady stream of high-margin recurring revenue from customers who make more frequent purchases from the company’s domains. In return, customers get one-day shipping on millions of items, exclusive video content, and other perks, which creates a powerful positive feedback loop that attracts both buyers and sellers. The Kindle and other devices further reinforce the ecosystem by drawing in new customers and attracting existing ones with their value offer.

Operating cash flow for the trailing twelve-month period was $115.9 billion, up 36% from $84.9 billion for the same time in the previous year, which concluded in December. In February, Amazon.com, Inc. (NASDAQ:AMZN) announced that it would invest over $100 billion in capital expenditures this year, with a significant focus on artificial intelligence advancements. This decision was taken in spite of DeepSeek’s success as a Chinese AI startup, which is renowned for producing incredibly effective and affordable AI models that have ignited the IT sector. Amazon allocates a large portion of its capital expenditures to AI development through AWS, or Amazon Web Services, which demands initial hardware and data center investments to support the platform’s rapid growth.

Fred Alger Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Amazon.com, Inc. (NASDAQ:AMZN) is a renowned online retailer and leader in cloud computing. The company’s Amazon Web Services (AWS) division offers utility-scale cloud solutions that support corporate America’s digital transition. During the quarter, Amazon’s shares contributed to performance as the company reported better-than-expected fiscal third-quarter results, with revenues and earnings beating analyst estimates. Operating margins expanded to 11%, driven by efficiency gains in logistics and robust AWS performance. Notably, AWS revenue growth accelerated during the quarter, along with recording its highest-ever operating margin of 38.1%, driven by easing cloud cost optimizations, renewed workload migrations, and an increasing contribution from AI workloads. On their earnings call, management highlighted plans to increase capital expenditures to enhance their technology infrastructure, catering to the surging demand for AI-driven computing.”

Overall AMZN ranks 1st on our list of the best Warren Buffett stocks to buy right now. While we acknowledge the potential for AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.