Marcus LeeSunday, Jun 29, 2025 9:32 am ET

27min read

[text2img>A split visualization showing Amazon's AWS cloud infrastructure and Visa's global payment network, highlighting their interconnected role in modern commerce

Berkshire Hathaway's holdings in Amazon (AMZN) and Visa (V) are no accident. Both companies are textbook examples of , fueled by unassailable competitive moats, AI-driven innovation, and financial resilience. With Berkshire's Warren Buffett famously favoring businesses that generate lasting value through reinvestment and adaptability, Amazon and Visa fit the mold. Here's why they're poised to thrive for decades.

Amazon's dominance in e-commerce and its cloud division, AWS, creates a near-impenetrable moat. AWS holds , leveraging economies of scale to undercut rivals like Microsoft Azure and Google Cloud. Its ecosystem—from Prime membership to third-party sellers—creates a sticky network effect, locking in customers and businesses alike.

Amazon is pouring capital into AI to maintain its edge:
- : A unified AI workspace integrating tools like QuickSight (data analytics) and Q Apps (generative AI app creation). This simplifies workflows for enterprises, reducing reliance on fragmented software.
- : AI tools like optimize delivery routes, while agentic AI robots in warehouses cut costs and improve safety.
- : AWS's data centers in Pennsylvania, powered by nuclear and natural gas energy, ensure scalability for AI model training.

Amazon's operating margins improved to , signaling better cost management. With $2.19 billion in Berkshire's holdings (0.82% of its portfolio), Buffett's confidence is clear. Even at a , Amazon remains undervalued for its growth potential.

Visa's payment network processes , benefiting from a rooted in its network effect and regulatory approvals. Its partnerships with banks and merchants create a closed-loop system where competitors struggle to replicate its reach.

Visa is transforming payments with AI:
- : AI analyzes 300 billion transactions yearly to block fraud, with systems like reducing losses by targeting high-risk transactions.
- : Visa's APIs enable instant cross-border transactions, critical as global e-commerce grows.
- : Tools like (biometric authentication) and let AI agents securely manage payments, expanding access for fintechs and micro-sellers.

Visa's profit margins hover near , and its dividend yield of offers stability. Berkshire owns , emphasizing its role as a . With , Visa's growth is both steady and future-proof.

For long-term investors, . Amazon's AI-fueled cloud dominance and e-commerce scale offer , while Visa's payment network and dividends provide income and stability.

• Hold Visa as a hedge against market turbulence, benefiting from global commerce's digital shift.

Both are compounding machines with Berkshire's imprimatur—position yourself for the next decade now.

Final Note: These are not short-term bets. Let Buffett's wisdom guide you: Focus on moats, reinvestment, and patience. The next decade belongs to companies that own the infrastructure of tomorrow.