3 Warren Buffett stocks to buy with £1,000

When it comes to investing, there is no better mentor than Warren Buffett. This is because the Oracle of Omaha has been able to beat the stock market with its long-term investment philosophy. So, here are the three stocks he invested in, which I bought with £1,000.

1. Apple

Apple (NASDAQ:AAPL) has been a mainstay in Warren Buffett’s portfolio for years. According to the latest filing, Buffett’s fund, Berkshire Hathawayowns over 915m shares of Apple.

Although sometimes accused of being a ‘boring’ stock, Apple remains a leader in the smartphone industry, with a growing user base. This not only boosts sales for devices, but also provides additional revenue when users use and purchase company services (Apple Music, iCloud, Apple TV).

In addition, Apple’s financials are also impressive. The company generated $394 billion in revenue last year and continues to grow. The cash pile is also huge, sitting at $24bn, leaving room to increase shareholder value through share buybacks and dividends. So, it’s easy to see why Warren Buffett is a big fan of the world’s most valuable company.

2. TSMC

Taiwan Semiconductor Manufacturing Company (NYSE: TSM) is the world’s largest semiconductor foundry. Responsible for producing chips for some of the biggest names in the technology industry. This includes like AMD, Qualcommand Apple.

Warren Buffett recently sold almost all of his shares in TSMC, which shocked many investors. However, I am still bullish on the manufacturer because it remains the industry leader, making the most advanced chips in the world.

More importantly, TSMC’s financials are very good. The group is effectively a money spinner as it can increase profits while smoothly expanding profits. This is due to the growing demand for semiconductors, as the world becomes increasingly digital with more devices requiring chips.

The recent drop in demand could hurt TSMC’s stock price. But the rebound will eventually begin, and the rally is possible. After all, the current price-to-earnings (P/E) ratio of 13 is extremely low for a growth stock.

3. Diageo

Warren Buffett has only a small position in the spirits maker Diageo (LSE:DGE). However, I consider it a good stock to own, especially during the current cost of living crisis.

Beverage companies have reported solid numbers for 2022, showing resilience despite high inflation. This is because the business has a strong market position and is well positioned to benefit from the growing demand for premium alcoholic beverages.

At FTSE 100 the stalwart is also involved in acquisitions to expand its portfolio. So, the potential for Johnny Walker-owners to continue to grow profits are always there. Therefore, a forward P/E of 20 can indicate that the stock is reasonably priced.