Beginner Investors: Be Like Warren Buffett With These 2 Top TSX Stocks

These two top Canadian Warren Buffett-affiliated stocks are ones investors should consider in this current environment.

| More on:
Shopping card with boxes labelled REITs, ETFs, Bonds, Stocks

Image source: Getty Images.

Without a doubt, one of the greatest investors of all time, Warren Buffet knows how to pick the best value stocks. Accordingly, his previous dealings with Restaurant Brands (TSX:QSR)(NYSE:QSR) and Suncor Energy (TSX:SU)(NYSE:SU) speaks volumes regarding the companies.

Yes, the Oracle of Omaha has trimmed or exited his stake in these companies of late. However, the fact that Warren Buffett has been closely involved with these companies in the past signals to investors that there’s some real value with these stocks.

Let’s take a look at why Mr. Buffett showed interest in these companies in the first place.

Suncor Energy

For investors seeking pure-play energy stocks, Suncor Energy has been a go-to option for some time. Indeed, given where WTI oil is trading today, there’s a lot of optimism around such plays. Companies like Suncor with relatively low breakeven costs per barrel are poised to become cash-flow machines. Indeed, a year ago, the discussion was very different.

Of course, any company providing investors with high leverage to oil prices carries a certain amount of inherent risk. Should oil prices revert down to 2020 levels, we could see some significant downside with these stocks. Accordingly, investors are pricing in a relatively healthy margin of safety with Suncor and its peers.

However, for those who believe the demand for energy coming out of this pandemic will be greater than 2019, perhaps these current energy prices are sustainable. Indeed, Suncor reflects bullishness with the reflation trade which remains relatively strong right now.

Given the company’s recent focus on cutting costs, I expect to see very strong margins from Suncor. Accordingly, this is a stock that could really take off in the medium-term, should investors continue to jump aboard.

Restaurant Brands

Restaurant Brands is a company that has been significantly hampered by the pandemic. Indeed, the company’s share price remains well below its all-time highs, suggesting some serious room to run here.

For those bullish on the pandemic recovery thesis, this is a stock that should be on one’s radar. Indeed, Restaurant Brands’ lower-than-average valuation multiple combined with the company’s impressive growth prospects coming out of this pandemic make it a great pick to consider today.

Among the fast food banners under Restaurant Brands’ portfolio are Burger King, Tim Hortons, and Popeyes Louisiana Kitchen. These three banners are iconic and provide excellent leverage to growth in the quarters and months to come. In particular, these brands are growing quickly in the Asia Pacific region, something I expect to continue for some time.

With strategic tweaks to the company’s business, including at key banner Tim Hortons, I think Restaurant Brands can improve its underlying fundamentals from here. Accordingly, this is a growth-at-a-reasonable-price pick investors should consider right 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 Chris MacDonald has no position in any stocks mentioned in this article. The Motley Fool recommends Restaurant Brands International Inc.

More on Energy Stocks

Nickel ore is mined from the ground.
Energy Stocks

3 Top Commodity Stocks TFSA Investors Can Buy Right Now

Commodity stocks such as Albemarle and Barrick Gold may provide investors an opportunity to deliver outsized gains in the next…

Read more »

oil and natural gas
Energy Stocks

3 Top TSX Energy Stocks That Seem Ready to Soar

TSX energy stocks could soon bounce higher.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Should you Buy Energy Stocks in October?

After many energy stocks have fallen in price in recent months, are these some of the best investments to buy…

Read more »

Man holding magnifying glass over a document
Energy Stocks

This Little-Known TSX Stock Has Huge Potential

Whitecap Resources Inc. (TSX:WCP)(NYSE:WCP) is a TSX stock that is still worth snatching up in late September.

Read more »

A golden egg in a nest
Dividend Stocks

How to Turn $5 Into $50,000 for Retirement

Can you invest in your retirement goals even in this volatile market? The answer is yes, and an investment amount…

Read more »

Clean energy
Energy Stocks

TSX From Windfall to Free Fall: Where is the Value?  

The TSX Composite Index is in a free fall after windfall gains from tech and energy stocks. Where to look…

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

3 Ways to Make Money From Suncor Energy (TSX:SU) Stock 

Suncor Energy (TSX:SU)(NYSE:SU) stock attracted investors seeking exposure to the oil price. Here's how to make money from it.

Read more »

canadian energy oil
Energy Stocks

2 Top Energy Stocks to Own if an Oil Slump Comes Next

Two top energy stocks are worth buying on weakness as both could endure a potential oil slump.

Read more »