Warren Buffett is one of the most successful investors of all-time, having amassed a fortune that today stands at US$84 billion and growing, despite growing up from modest means in Omaha, Nebraska — the place he still calls home to this day.
One of Buffett’s most famous maxims is to “…be greedy when others are fearful, and to be fearful when others are greedy.”
This statement could not be truer and more applicable than in today’s market.
Markets have plummeted from their all-time highs to start the year, and while this has many in the market — including seasoned professionals — doubting themselves and wondering if perhaps this is the beginning of the end, today’s market provides a truly unique opportunity that all investors can take advantage of, regardless of their education or experience.
GDP accelerated in the United States in 2017 with many economists expecting that the Trump administration would be successful in achieving 3% growth for the world’s biggest economy in 2018.
And while the latest news has some speculating that wage increases will lead to inflationary pressures south of the border, this is actually a good thing and a sign that nearly 10 years removed from the 2008-09 Financial Crisis, the markets are finally starting to regain a firm footing that can support a more normalized interest rate policy from central bankers.
The best part about all of this is that when investors start “panicking” about the potential of a market crash, it tends to put even the very best blue-chip companies on sale.
Here are two stocks that have sold off in 2018 that would make great additions to any investor’s portfolio.
Molson Coors Canada Inc. Class B (TSX: TPX.B)(NYSE: TAP)
Even if the North American economy did go into recession, Molson Coors would fare a lot better than most as the world’s largest alcoholic brewer by sales and volume produced.
Beer and spirit sales are widely considered to be recession proof — people will tend to “drown their sorrows” when things aren’t so great, and when everything’s going well, they will probably drink even that much more.
Molson Coors made a big splash late in 2016 when it acquired the outstanding interest in its joint-venture with Miller Coors.
The move went a long way to giving the company an established foothold in the world’s largest beer market, which should pay dividends for investors long term.
Enbridge Inc. (TSX: ENB)(NYSE: ENB)
Enbridge is another company that made a big splash in the markets recently with its acquisition of Houston-based Spectra Energy early in 2017.
The move came with a hefty price tag that will likely see Enbridge slow down on the pace of its dividend increases compared to years past, but this is unquestionably a company that will play a vital role to the North American energy market for decades to come.
Conclusion
As they say, “every cloud has a silver lining.”
While the recent volatility has certainly provided some uncomfortable moments for investors at times, it has also provided a great opportunity to pick up some great businesses at prices they wouldn’t otherwise be available at.
