As one of the most successful investors in the world, Warren Buffett has a way of turning investor heads whenever he and his firm make a significant investment. People tend to follow the man who has shown annual returns almost twice the size of the market. You may want to consider his investment decisions as well.
He is known as the Oracle of Omaha, thanks to the success rates he has shown with his investments. A remarkable feat, especially when you consider the fact that his investment strategies are relatively simple. Warren Buffett’s investment methods don’t need a plethora of numbers or groundbreaking calculations to be explained.
There are only two TSX stocks Buffett has invested in, and they are Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Restaurant Brands International Inc. (TSX:QSR)(NYSE:QSR). Both of these stocks are solid and can be considered dividend aristocrats.
Suncor is only the second energy company in Buffett’s investment portfolio, and he has invested in the company twice. The first time, he bought in June 2013, only to sell the 30 million shares by the end of 2016. It might have been a sign of weakness for the company since Buffett is a value investor and prefers to invest in well-managed businesses.
But the company has shown substantial growth, and it might be an indication of the company’s still stable future that Buffett and his firm have reinvested in the company. With about 10.7 million shares, he owns about 1% of Suncor.
Energy companies around the globe have seen some shaky years. With environmental considerations on the rise and a general turnover toward alternative energy sources, the oil-based companies are not as lucrative for investors as they used to be. Still, Suncor seems to be on the right track.
The company has increased dividend payments for nine consecutive years and is currently trading at $39.89 per share. Not an all-time low, but maybe low enough to consider buying now.
Restaurant Brands International
A relatively new player in the market, RBI is only five years old. Still, RBI is the fifth-largest fast-food restaurant operator in the world. It is a combination of Burger King, USA, and Tim Horton, Canada. Buffett’s firm owns about 8.4 million shares of the company, which translates to about 3.32% ownership.
Even though the company is new, the food chains it’s made up of are decades old. RBI is a good and reliable business, and it’s no wonder it caught the eye of a value investor like Buffett.
RBI has done well for itself and its investors, by paying them increasing dividends since 2015. The current dividend is more than five times the first dividend payment. The company isn’t old enough yet, but if the dividend streak continues, the company will soon be considered a dividend aristocrat.
RBI is currently trading at $94.13 per share, more than twice the value at the beginning (around $40).
The best decisions you can make about your investment portfolios depend upon your research and judgments. But that doesn’t mean you cannot learn from the ways of the industry gurus. If you are looking to enhance your investment portfolio with stable, value investments, you may want to follow Warren Buffett’s TSX picks.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of RESTAURANT BRANDS INTERNATIONAL INC and has the following options: short January 2020 $94 calls on Restaurant Brands International.