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Why You Should Buy These 5 Favorite Warren Buffett Stocks

Why You Should Buy These 5 Favorite Warren Buffett Stocks

By    |   Tuesday, 26 November 2019 01:42 PM

Investing guru Warren Buffett tends to focus on so-called quality stocks.

These firms "feature wide moats, plenty of cash flows, dividends and steady earnings. Warren Buffett stocks aren’t flashes in the pan. This focus on quality is what drives Berkshire Hathaway’s returns over the long haul. And with the markets getting a bit top heavy, this quality factor is becoming even more important," InvestorPlace recently explained.

InvestorPlace recently tossed the spotlight on five of Buffett's favorites:

  • Apple (AAPL): "Apple continues to innovate. The firm’s latest batch of smartphones and gadgets are quickly becoming must-have devices. Sales of the new iPhone remain swift. At the same time, AAPL continues to move further into offering services on those devices. That makes it a cash flow machine — which Buffett loves," InvestorPlace said.. Buffett holds 248 million shares.
  • Store Capital (STOR):  With such strong cash flows and dividends, it’s easy to see why Buffett has fallen in love with STOR and owns 18.6 million shares
  • Synchrony Financial (SYF):  SYF is one of the largest issuers of store-branded credit cards in the country. "The kicker for Synchrony is that store cards often come with higher interest rates and lower credit limits than a regular universal credit card. The end result is a lender who’s very profitable and shares those profits via rising dividends and buybacks. With new moves into digital payments, SYF should be able to keep the growth going into the future," the report said. Buffett owns 20.8 million shares.
  • Coca-Cola (KO). " KO is as recession resistant as they come. Demand for juices, water and soft drinks remains pretty steady no matter what the economic environment. That fact has made Coca-Cola a cash flow and profit stalwart throughout its history. And investors in KO have been rewarded through thick and thin as well. This year represented the 57th consecutive year of dividend increases. It offers all the safety of a great leader and plenty of growth behind it," IP said. No wonder Berkshire owns 400 million shares.
  • Bank of America (BAC). Since the financial crisis, Bank of America has transformed itself into a better-run bank. All of this work has made BAC a wonderful dividend stock as well. High cash flows, cheap valuations and market leadership? No wonder why Buffett is attracted to it and owns 927 million shares.

Shares of companies often rise after Berkshire announces new or increased stakes, reflecting investors’ regard for Buffett and the Omaha, Nebraska-based conglomerate he has run since 1965.

Investors monitor Berkshire’s quarterly filings for signs on where Buffett and his portfolio managers Todd Combs and Ted Weschler see value.

This report uses material from the AP, Bloomberg and Reuters.

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Investing guru Warren Buffett tends to focus on so-called quality stocks.
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Tuesday, 26 November 2019 01:42 PM
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