One of the most significant changes in the world of investment has been the introduction of commission-free trading apps. Mobile apps have made investing more accessible. Individuals who previously had to rely upon brokers and investment managers can now make the investments themselves.
But retail investors, by definition, do not have in-depth knowledge or understanding of the market like brokers do. And even though it can be learned, some people opt for less time-consuming alternatives. They range from robo-advisors and ETFs to mimicking the portfolio or individual investment choices of gurus like Warren Buffett.
So, if you have $300 to invest, you want to know which of Buffett’s investments might be the right fit for you (based on capital on hand). Here are two companies that should stand out from the rest.
Image source: The Motley Fool
A tech stock Buffet likes
Warren Buffett, even though he is not a fan of crypto (to put it mildly), has no qualms about investing in tech stocks. And one of the tech companies in his portfolio is HP (NYSE: HPQ), a relatively recent acquisition. And even though it no longer has the largest market share in the laptop market (when Lenovo grabbed the top spot), it’s still a formidable player in the global computer market.
It’s also one of the top printer manufacturers in the world. The company has several other products, mostly in the same sphere, but they don’t have the same level of global penetration.
Hewlett-Packard, or HP, has been around since 1939, making it one of the oldest companies in this space. It has global recognition, and its products are available in virtually all corners of the world. No doubt, these qualities attracted Warren Buffett to this company. HP’s also currently heavily discounted and undervalued, trading at a 36% decline from its yearly peak, with a price-to-earnings of just 4.4.
As an undervalued tech giant that may take off when the market stabilizes, HP is one of the best companies to invest in (from Warren Buffett’s portfolio). It also offers dividends at a great yield, but that might not be a significant enough factor with low capital.
A bank stock for value investors
As a Canadian investor, you may be familiar with the “big-five,” which refers to the five largest banks in the country. The US has something like this as well, the big four banks, and one of them is Bank of America (NYSE: BAC). BofA is your typical blue-chip stock: Strong, stable, huge, and mostly profitable.
It’s the second largest bank in the country by asset size and has a massive footprint – 67 million consumers, 4,000 locations, and over 55 million digital users.
Though the stock still hasn’t recovered from the decline during the Great Recession. Although US banks were the hardest, they have come a long way in the past decade. BAC stock rose almost 700% from January 2012 to January 2022. And it’s currently discounted and modestly valued, making it a good investment at a good price.
Foolish takeaway
These two Warren Buffett stocks can be an asset in your TFSA and RRSP. And if your capital situation improves, you can also buy them for their dividends. The dividend payouts can allow you to accumulate USD in your registered accounts for future investments across the border.
