Amazon in Focus: Growth Potential Despite Global Size

Warren Buffett's investment company, Berkshire Hathaway, is among the giants of financially strong conglomerates. With holdings in nearly 50 stocks, many from the finance and energy sectors, as well as some Japanese titles, the portfolio is highly diversified. Nevertheless, it can sometimes be challenging to make simple buying decisions without detailed knowledge, as the term "no-brainer" can often be deceptive. In the company Amazon, for example, upward potential still seems to exist. The stable foundation is the core business in e-commerce. Equally remarkable, however, are the steadily expanding advertising services and the AWS cloud computing platform. Amazon has managed to increase its advertising business to over 50 billion US dollars in annual revenue, with an impressive quarterly growth of 19%, thanks to its insight into consumer behavior. Particularly noteworthy is AWS, a cornerstone of Amazon's future strategy. After a temporary slowdown in growth, the platform has recently recorded accelerated growth for four consecutive quarters. The role of artificial intelligence is particularly exciting, as it has the potential to further drive demand for AWS and thereby increase profit margins—a promising prospect for investors. While Amazon operates progressively in terms of technology, Pool makes the business down-to-earth. This company is a newer addition to the Berkshire portfolio and impresses with its mundane but solid business model around swimming pool accessories. Although the investment is still small, Buffett and his team recognize potential here.