Warren Buffett is likely the biggest role model for people when it comes to stock market investing. The Oracle of Omaha has become a billionaire through his success over a decades-long incredible career as a professional investor. To be the best, many would suggest investing like the best.
Warren Buffett is famous for investing primarily in U.S. stocks. However, he has dabbled in a few companies outside the U.S. over the years. The undisputed investing king only invests in companies when he is sure about his portfolio’s profitability. When he chooses stocks outside the U.S., you can be sure he sees the immense potential in those companies.
I will discuss Suncor Energy (TSX: SU)(NYSE: SU) and Barrick Gold (TSX: ABX)(NYSE: GOLD). These two Warren Buffett stocks could make valuable additions to your portfolio if you have $1,000 that you can allocate as investment capital.
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Warren Buffett’s number one energy stock
Suncor is one of the most prominent energy companies in Canada. It is Buffett’s favourite play when it comes to betting on the oil sands in Canada. Suncor and the entire Canadian energy sector were decimated by the one-two punch from depressed oil prices and the pandemic. Buffett chose to bolster his position in the company, despite investors thinking he would exit his position in the company.
The oil patch is facing an unprecedented obstacle course due to the headwinds of a potential second wave of infections and another pullback in oil prices. It is possible that Suncor could be massively oversold, despite the negative momentum. Short-term weakness will devastate shareholder capital, but Suncor could provide massive returns, as we move on from the global health crisis and fossil fuel demand normalizes.
Buffett is a master of long-term investments. Suncor has long-term fundamentals to provide you with immense potential returns.
Warren Buffett’s latest stock
Buffett is famous for going against the grain with value stocks that people generally avoid. That is the case with Suncor, and it could possibly be the case with the latest Canadian addition to Berkshire Hathaway’s holdings.
Warren Buffett generally does not invest in gold or gold mining companies. He does not believe that the commodity has real value besides the jewelry industry. However, the Oracle of Omaha surprised everyone when Berkshire’s latest 13F filing revealed that he invested US$564 million in the Canadian gold and copper mining company.
Barrick has been around for decades and has mining operations in 13 countries worldwide. It mines gold and copper. Both metals are in constant demand. Barrick surged during the 2020 market crash, as people sought to invest in gold as a safe-haven asset. The company used this momentum to pay down its debts, and it could become debt-free by the end of the year.
Buffett invested in the company, despite his aversion to gold and gold companies. It speaks a lot about the potential of Barrick for your investment portfolio.
Foolish takeaway
You might not always agree with Warren Buffett’s investment decisions. Exiting Restaurant Brands International was a confusing decision for many investors and analysts. Whether or not you agree with Buffett selling RBI, Suncor and Barrick seem like excellent investments to consider.
