3 Evergreen Financial Stocks to Buy With $3,000 and Hold Forever

Investing in the stock market can feel daunting, especially if you only have $3,000 to work with. Many well-known stocks are priced at hundreds or even thousands of dollars per share, which can make it hard for new investors to see how they can participate. However, with the rise of commission-free trading platforms and the option to purchase fractional shares, diversifying your investment portfolio has become much easier. If I were starting out with $3,000, I would allocate that amount among three evergreen financial stocks that hold great long-term potential: American Express (AXP 2.77%), SoFi Technologies (SOFI 6.68%), and Berkshire Hathaway (BRK.A 0.90%) (BRK.B 0.84%). Each of these companies has distinct advantages, strong market presence, and significant growth prospects over the long term.

American Express

American Express is often compared to Visa and Mastercard, but its business model is quite different. Unlike Visa and Mastercard, which primarily process payments and do not issue their own cards, American Express both issues credit cards and operates its own bank. This allows American Express to cater to higher-income customers, resulting in a more focused market segment. Although it controls a smaller share of the credit card market compared to Visa and Mastercard, this is a strategic decision to maintain lower risk by targeting high-quality customers.

American Express is also better insulated against fluctuations in interest rates. For instance, while an increase in interest rates may dampen consumer spending—which impacts swipe fees—those same rates can enhance profitability in its banking segment. This dual aspect of its business makes investing in American Express more balanced compared to Visa and Mastercard, which lack their own banking operations. The company has also made efforts to expand internationally, reducing its reliance on the U.S. market.

Looking forward, analysts project that between 2024 and 2027, American Express will experience a revenue growth rate of around 8% annually, while its earnings per share (EPS) are expected to rise by approximately 13% annually. Currently, American Express's stock appears reasonably priced at 18 times this year’s earnings and offers a forward yield of 1.2%.

SoFi Technologies

SoFi, short for Social Finance, is poised to transform the way consumers interact with financial services by presenting itself as a comprehensive digital platform. It offers a variety of financial solutions including personal loans, credit cards, insurance, estate planning, and even stock trading. Recently, after obtaining a U.S. bank charter in 2022, SoFi launched a fully digital bank.

This approach has attracted a younger demographic that prefers online services over traditional banks. Membership at SoFi has skyrocketed, increasing from 2.52 million at the end of 2020 to an impressive 10.13 million in 2024. Additionally, its payment-processing subsidiary, Galileo, boasts 168 million accounts. Notably, SoFi achieved profitability on a GAAP basis in 2024.

While SoFi has faced challenges in recent years—such as the federal freeze on student loans from March 2020 to September 2023 and a decline in loan activity due to rising interest rates—the Fed is now looking at potential rate cuts, which could create positive momentum. As these obstacles ease, analysts project a revenue growth rate of 19% and an EPS increase of 24% from 2024 to 2027.

Although SoFi's stock may not appear inexpensive at 49 times this year’s earnings, it becomes more attractive when considering the forward adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), estimated at about 14 times. If you believe that more consumers will shift away from traditional banks in favor of digital platforms, SoFi is worth considering as a growth stock.

Berkshire Hathaway

Finally, you can't mention solid long-term investments without highlighting Berkshire Hathaway, run by the iconic investor Warren Buffett. This company offers an easy way to invest in a wide array of established financial companies. Its primary operations include ownership of insurance companies like GEICO and various others, alongside a substantial stock portfolio valued at approximately $284 billion, which includes leading positions in American Express, Capital One, Bank of America, and Nu Holdings.

Berkshire Hathaway also has interests in industries such as energy, transportation, and consumer staples, providing a layer of diversification that has made it a reliable long-term investment option. Since Buffett took the reins in 1965, Berkshire has consistently outperformed the S&P 500.

Buffett prefers to measure performance using "operating earnings," which exclude capital gains or losses from investments, showing a compound annual growth rate (CAGR) of 16% between 1994 and 2024. This growth trajectory is expected to continue as long as Buffett's successors maintain his approach to evergreen investment strategies.

Investors looking to cultivate a sustainable financial portfolio might find great value in these three stocks: American Express, SoFi Technologies, and Berkshire Hathaway. Each comes with its own strengths and potential for long-term growth.

Stocks, Investing, Growth