The COVID-19 pandemic has been a significant cause of concern for investors worldwide. Stock markets have been hurt badly with the global health crisis, but there seems to be a certain amount of recovery since the market meltdown in March 2020.
Stock market investors look to the Oracle of Omaha to see what moves he is making. Warren Buffett is considered the world’s most successful stock market investor — and it’s not hard to see why. He has consistently managed to come out on top through market downturns and become a wealthier individual through his wit and understanding of the market.
Confidence in his investments
As the pandemic continues to plague the world in the second half of 2020, Warren Buffett remains confident in his investments. He maintains his position that U.S. stocks will be a fantastic investment over time. He is the CEO of conglomerate Berkshire Hathaway. The company invests primarily in U.S. companies like Coca-Cola and Bank of America, but Restaurant Brands International (TSX:QSR)(NYSE:QSR) is one of the only two exceptions.
While he maintains his position about U.S. stocks being valuable over time, he has continued to remain invested in Restaurant Brands International.
5 Stocks Under $49 (FREE REPORT)Click here to gain access!
Restaurant Brands is the owner of three famous restaurant chains, Burger King, Tim Hortons, and Popeyes Louisiana Kitchen. The quick-service restaurant business took a substantial hit with the mandated social distancing measures and lockdown.
At writing, Restaurant Brand share prices stand at $77.17 per share, 8% down from the start of the year. At this share price, the company pays its shareholders at a decent 3.65% dividend yield. While the investors have lost 8% year-to-date, the stock is up by almost 90% from its March 18, 2020 bottom.
While Restaurant Brands took a massive hit, it has recovered significantly as the panic subsided. It is an industry champion and a veteran when it comes to fast-food chain operations. The $35.91 billion market capitalization company posted a 3.2% drop in earnings year-over-year with $1.2 billion in revenue during Q1 2020.
The most significant challenge for brick-and-mortar restaurants and other businesses restores the footfall when the pandemic finally recedes. However, growth prospects are still there for Restaurant Brands. The demand for meat alternatives is increasing, and Burger King is among the restaurants offering meat-free options on its menu.
Whether you’re a young investor who wants to play the long-term game or an older investor seeking short-term gains and relative stability for your capital, Warren Buffett’s picks on the stock market can present you with viable options to consider.
While Buffett has been cautious with making new purchases during the pandemic-induced market downturn, he did go ahead and invest in Dominion Energy. It shows his faith in the energy sector, while many investors are decidedly staying away from oil-related companies.
His recent move shows that he is confident in energy companies, including Suncor Energy, his second Canadian stock.
If you’re not inclined to invest in the energy sector, but want to emulate Warren Buffett’s portfolio, Restaurant Brands is a stock you can certainly consider adding to your portfolio.
Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.
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 and recommends Berkshire Hathaway (B shares). The Motley Fool recommends RESTAURANT BRANDS INTERNATIONAL INC and recommends the following options: short September 2020 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and long January 2021 $200 calls on Berkshire Hathaway (B shares).