What To Buy With $300

Why do and then many people follow Warren Buffett? Because the billionaire investor has such an splendid track record. Berkshire Hathaway, with Buffett at the helm, has posted more than a 20% compound annual gain over the past 56 years. That's compared to a ten.5% compound annual increase past the Southward&P 500 Alphabetize during the aforementioned period.

Buffett prides himself on buying excellent companies -- and holding. His stock picks don't vanquish the market every day. Merely over the long term, Buffett has come out a articulate winner. Here'due south the expert news: You don't have to exist a billionaire to follow in Buffett's footsteps. In fact, with but $300, you can get in on some of his favorite stocks. Let's check out three that each trade for less than $300 a share.

1. Amazon

Buffett bought shares of Amazon (AMZN i.88%) back in 2019. The stock has gained nearly 70% since then. And then it's been a winner for Buffett over simply a few years. But there's reason for Buffett to follow his usual strategy and hold on for the long term -- and for other investors to do the same.

Amazon is a leader in two high-growth businesses: eastward-commerce and cloud calculating. Of course, rising aggrandizement and economical worries accept weighed on the e-commerce business these days. But Amazon is managing the costs it tin control and maximizing the use of its vast fulfillment network.

It'south important to remember that today'south economic situation is temporary. And when recovery happens, Amazon's e-commerce operation is ready to soar. Even meliorate, the cloud calculating business continues to nail during today's tough times. In the virtually contempo quarter, Amazon Web Services (AWS) reported a 36% increase in operating income. AWS is typically the chief profit driver for Amazon.

Amazon shares are trading around their lowest in five years in relation to sales. Considering east-commerce and deject calculating growth potential, today'south price looks similar a steal.

AMZN PS Ratio Chart.

AMZN PS Ratio information by YCharts.

2. Johnson & Johnson

Johnson & Johnson (JNJ 0.45%) is a longtime holding for Buffett. One element the investor surely appreciates is J&J's dividend policy. The company is a Dividend Male monarch. That ways it's raised its dividend for more than 50 directly years. J&J pays out $4.52 annually at a yield of 2.78%. That'south a higher dividend yield than the industry average of nigh 1.98%, according to Dividend.com figures.

Across dividends, J&J offers revenue and turn a profit forcefulness. The company's pharmaceutical business brought in more than than $thirteen billion in revenue in the second quarter. And last year, net income soared past $20 billion. J&J has multiple blockbuster drugs beyond treatment areas, including immunology, neuroscience, and oncology. And the visitor's 99 candidates in the pipeline may correspond revenue down the road.

1 major chemical element holding J&J's growth back has been its consumer health business. Just J&J plans to spin off that business into a dissever entity next year. That leaves room for the stronger businesses of pharmaceuticals and medtech to prepare the stride for J&J in the years to come.

This transformation means J&J may be at the first of a new growth story. And that makes right now a great time to invest.

3. Coca-Cola

Buffett started ownership Coca-Cola (KO 0.82%) shares in the belatedly 1980s and never looked dorsum. The world's biggest not-alcoholic drinkable company is among one of his top holdings. There'south a lot to like nearly Coca-Cola beyond just the taste of its drinks. Like J&J, Coca-Cola is a Dividend King. With that rails record, it's reasonable to be optimistic most future dividends.

Coca-Cola has a vast presence worldwide. Its products are sold in more than 200 countries. And it boasts virtually 200 brands. And speaking of brands, brand strength helps the visitor go on on winning. That and other elements such every bit product innovation -- for instance, developing nothing sugar or low-sugar drinks. And key financial metrics return on invested capital and free cash catamenia have been on the rise over recent years.

KO Return on Invested Capital Chart

KO Render on Invested Upper-case letter information by YCharts.

Right now, Coca-Cola's v-yr average organic revenue growth rate is at the loftier end of its 4% to 6% long-term growth target. And in the second quarter, the company reported eight% growth in global case unit book and double-digit growth in cyberspace revenue. That's in spite of headwinds that include supply chain issues and college transport costs.

Coca-Cola'due south valuation hasn't fluctuated tremendously. It'south generally traded between 25 and 30 times trailing-12-month earnings over the past couple of years. So it's withal a bargain because its long-term success and dominance in its market.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool'southward board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Berkshire Hathaway (B shares). The Motley Fool recommends Johnson & Johnson and recommends the post-obit options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, short Jan 2023 $200 puts on Berkshire Hathaway (B shares), and brusque January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.