In a strategic move to maximize returns, Warren Buffett, renowned investor and chairman of Berkshire Hathaway, has invested a staggering $25 billion from his portfolio into two stocks that are expected to surge in the coming years. Wall Street analysts have identified these stocks as potential winners, with price targets indicating a projected rise of 37% and 14% respectively by 2024.

One of the stocks catching Buffett's attention is Amazon (NASDAQ: AMZN), in which Berkshire Hathaway holds a substantial stake. In the third quarter, Buffett trimmed the company's Amazon position by approximately half a million shares, bringing it down to an even 10 million. However, Ronald Josey, a sell-side analyst at Citi, believes Buffett may have missed out by not holding on to the entire position.

Josey cites Amazon's dominant position in the American e-commerce industry as a significant advantage. The company's third-party retailers have established a strong and lasting relationship with Amazon, leading to soaring ad sales. In the third quarter, Amazon collected an additional $12.1 billion in ad payments from third-party merchants, representing a 26% increase compared to the same period the previous year. Moreover, Amazon Web Services (AWS), the largest provider of cloud services in the US, continues to witness resilient growth, with third-quarter revenue reaching $23 billion. This segment is projected to benefit from the ongoing expansion of the global cloud services market, which is expected to grow by 14.1% annually through 2030.

The second stock catching Buffett's attention is Coca-Cola (NYSE: KO), currently the fourth-largest equity holding in Berkshire Hathaway's portfolio. Although Coca-Cola shares experienced an 8% decline in 2023, Citi analyst Filippo Falorni anticipates a rebound in 2024. Falorni recently raised his price target on the stock to $67 per share, suggesting a potential 14% gain over the next 12 months.

Coca-Cola's steadily increasing dividend payments make it an attractive investment option. The company raised its dividend payout for the 61st consecutive year, offering long-term investors the potential for stable returns. With its portfolio holding 400 million shares of Coca-Cola, Berkshire Hathaway stands to receive over $736 million in dividends from the beverage giant in 2024, assuming Coca-Cola maintains its impressive dividend track record.

Despite concerns that the rising popularity of weight management drugs could impact sugary soda sales, Coca-Cola has demonstrated resilience in its North American case volume, neither increasing nor decreasing in the third quarter of this year. The company's strong brand recognition and pricing power provide a solid foundation to overcome the challenges posed by changing consumption patterns.

Both Amazon and Coca-Cola present promising investment opportunities, but they come with their own set of risks. Amazon's stock is currently trading at a high multiple of 94 times trailing free cash flow, leaving it vulnerable if earnings fail to rise significantly in the coming years. On the other hand, Coca-Cola's risks primarily revolve around the potential impact of health trends on the consumption of sugary beverages.

Investors interested in following in the footsteps of Warren Buffett may find value in adding these stocks to their diversified portfolios. However, careful consideration of the associated risks is essential, as the stock market remains inherently unpredictable.

In conclusion, Warren Buffett's strategic investment in these two stocks highlights his long-term approach to investing. With analysts predicting substantial growth potential for Amazon and Coca-Cola in the coming years, investors may consider these stocks as worthy additions to their portfolios. However, caution and careful analysis should always be exercised when making investment decisions.

Disclaimer: The provided information and opinions are solely based on the material available and should not be considered financial advice. Investors are advised to conduct their own research and seek professional guidance before making any investment decisions.