2 Warren Buffett Stocks To Buy Hand Over Fist and 1 To Avoid | The Motley Fool

With Warren Buffett's 55-year tenure as Berkshire Hathaway 's ( BRK.A +0.09%) ( BRK.B +0.15%) CEO and chief stock-picker set to come to a close at the end of this year, plenty of investors are understandably disappointed. After all, they'll no longer be able to copy the occasional pick from the Oracle of Omaha's market-beating portfolio. If you're looking for an idea you know for sure is a Buffett-approved pick, you'd better act soon before these stock-selection duties are passed on to his successor. Still, it's not like Buffett's been perfect. Even he acknowledges he makes the occasional investing misstep. With that as the backdrop, here's a closer look at a couple of current Berkshire holdings that would likely work for your portfolio as well, and one name Warren Buffett recently bought that you might not want to ... at least not yet, and maybe never. Image source: Motley Fool. A stock to buy: American Express Given how infrequently it's highlighted as a Buffett pick, many investors are surprised to learn that credit card powerhouse American Express ( AXP +0.21%) is Berkshire Hathaway's second-biggest stock trade; the position is worth nearly $58 billion and accounts for more than 18% of the conglomerate's portfolio. Even more telling is that it's also one of Berkshire's longest-held undisturbed holdings. Whereas Buffett's been steadily paring back supersized stakes in Apple and Bank of America , Berkshire's 151.6 million shares in American Express are the same number of shares it has owned since first buying it back in 2006. This speaks volumes about long-term confidence in the company. That being said, it's not difficult to understand why Buffett is such a big fan. NYSE: AXP Key Data Points While not as big as Visa or Mastercard, nor growing as quickly as either one right now, AmEx caters to more affluent consumers who aren't really rattled by economic headwinds. The company's third-quarter revenue growth accelerated to a year-over-year pace of nearly 11%, coming in at a little over $18.4 billion versus analysts' estimates of only $18.05 billion. Then, in early December, American Express reported a 9% year-over-year increase in consumer spending during the Thanksgiving holiday weekend, with its wealthiest cardholders pumping up their spending even more, proving the card company's resilience. Do you know that AXP shares are one of Wall Street's few stocks presently trading above their consensus target price, prompting some interested investors to balk. That's why it wouldn't be completely crazy to see if a better price becomes available in the near future. Just don't let discipline turn into stubbornness. This is one of those cases where a ticker's price leads its consensus target just as much as it's led by it. Data by YCharts. In other words, don't sweat the ho-hum consensus too much. Instead, just focus on the consistent quality of American Express's business, as Buffett does. The premium you're paying for it eventually ends up paying for itself. A stock to buy: Alphabet Just a few years ago, the idea...

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