3 Best Warren Buffet Stocks To Buy In October
Warren Buffett is considered by many to be the most successful investor in history. That’s the whole distinction, and it’s not hard to see why investors pay such attention to his individual investment moves and his broader strategies and approaches to life and the market. Today only one part of Berkshire HathawayClass A shares are valued at approximately $ 427,000, an increase of more than 2,247,000% since Buffett took over as management of the company in 1965.
With this incredible performance in mind, a panel of Motley Fool contributors identified three stocks in Berkshire’s portfolio that look poised for some winning streak. Read on to see why they think StoneCo (NASDAQ: STNE), Verizon (NYSE: VZ), and Chevron (NYSE: CVX) are Buffett backed stocks worth adding to your portfolio this month.
Do not count this fintech out of stock
Keith Noonan (StoneCo): Warren Buffett’s advice to be “fearful when others are greedy and greedy when others are afraid” is possibly one of the most famous and frequently repeated investment wisdoms in the world. It’s also easier said than done.
After all, there can be well-founded reasons to be afraid at some point, and it can be hard to envision better days when prevailing attitudes are tinged with pessimism and uncertainty. On the other hand, it clearly did wonders for Buffett. I think there is an exciting opportunity for patient investors to get hungry for StoneCo stocks.
StoneCo is a leading provider of payment processing and other financial technology services in Brazil, but the company’s stock price has been crushed by what could be described as a perfect storm. headwinds. In addition to inflation and political concerns, regulatory changes in the country have weighed on the performance and outlook for the company’s credit business.
The company’s stock price is now down about 64% from its peak earlier this year, and many investors appear to have abandoned the stock. I think it’s probably premature, and I’ll add it to my holdings in the near future.
When it comes to growth stocks, I like to look for companies that are poised to benefit from powerful long-term trends. StoneCo certainly does the trick. Cash is still a more popular form of payment than credit cards and mobile payments in Brazil, but that is starting to change, and StoneCo is helping businesses adapt to this change. E-commerce is also on track for tremendous growth in Brazil and other Latin American markets, and the fintech specialist stands out as an attractive stock “in spades and spades” to take advantage of. the trend.
As the overall stock market continues to appear volatile, StoneCo appears to be attractively valued and shows a sharp rise at current prices. Getting across the fear surrounding the stock could prove to be very rewarding for patient investors.
There are good reasons to think defensively
James brumley (Verizon): The large market certainly appears to be recovering after the September collapse. But I’m still not completely convinced that we’re going to be able to postpone a correction much longer. The S&P 500 is still up 100% from last March’s low and has yet to drop more than 10% at any time during that rise. Sooner or later, it’s time for a healthy withdrawal, and I’m afraid it will be sooner rather than later.
During these turbulent times, Warren Buffett’s preferred approach really begins to work. The dividend-paying cash cows that Berkshire so often owns become havens for investors as they fall in favor and subsequently (usually) see price increases. I can’t think of a stronger defensive name Buffett currently owns than telecom giant Verizon.
Verizon just might be one of the most perfect cash flow machines out there. Consumers can postpone buying a new car if it looks like an economic headwind is about to start blowing, or skip a trip to the mall. But people don’t risk letting their mobile phone go offline by missing payment for their wireless service. These ongoing payments are supporting Verizon’s dividend, which currently translates to an incredible 4.7% yield. Not bad.
A balanced way to capitalize on the oil boom
Daniel Foelber (Chevron): Warren Buffett is known to favor industry-leading companies that also pay high dividends. Buffett’s recognizable favorites include Kraft Heinz, Coca Cola, and Verizon – to name a few.
Despite the high dividend yields available in the oil industry, Buffett has largely stayed away from oil and gas stocks. Certainly, Berkshire Hathaway Energy is one of Buffett’s “big four”. It is made up of more than $ 100 billion in assets, much of it related to fossil fuels.
Investors should keep in mind that Berkshire is a massive investor in oil and gas, but not in oil and gas stocks. But an exception is Chevron.
Berkshire reduced its stake in Chevron by more than 50% in the first half of 2021. Much like the decision to sell airline shares too early, there is reason to believe Buffett could cut this dividend aristocrat at a bad time. .
Chevron is a diverse and fundamentally strong oil and gas major that provides a balanced way to invest in a sustained oil and gas boom. Just a few years ago, she was spending a lot of money developing long-term projects. The company is now in a cycle of spending cuts, which has helped it maintain a better balance sheet than its peers while continuing to increase its dividend as other majors cut theirs.
The company takes a disciplined approach to project development by redirecting capital to projects offering the best returns and reducing less profitable assets. A good example of this strategy was the decision to buy Noble Energy in 2020 for what now appears to be an absolute bargain price.
Like any stock of oil and gas, Chevron faces long-term headwinds as developed countries turn to cleaner-burning energy sources. But the reality is that the world still relies heavily on fossil fuels for just about everything. Given Chevron’s 5.1% dividend yield and industry leadership position, it appears to be a great candidate for investors looking for exposure to high oil and gas prices without taking too much money. risks.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.