Warren Buffett has long been known as the finance guru of pretty much all time. He has amassed a fortune on the backs of value investing. This is why so many investors look to him for advice, high and low income alike.
So when it comes to looking at Warren Buffett stocks, investors can rest assured that a lot went into the choice to add them to Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). But when it comes to the best of the best, these are the three I would buy now, no question.
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Apple
Apple (NASDAQ: AAPL) is one of the richest companies in the world, with a current market capitalization at a whopping US$2.8 trillion. Shares rose steadily for decades before surging upwards around 2019. This surge came as recessionary fears started to creep into the minds of investors.
While no one could predict the pandemic that followed, investors also could not predict that Apple stock would be more than just fine! Tech stocks did well overall, certainly. But Apple stock managed to come out the other side without the enormous drop in share price.
This speaks to the company’s amazing resiliency, and it’s why it’s the top holding among Warren Buffett’s stock portfolio. Apple stock currently takes up 46% of Berkshire Hathaway’s portfolio, and will likely continue to climb in years to come.
That’s because Apple stock has a few things others don’t. First, there’s the brand recognition and loyalty that its consumers have come to know. Further, the company has made enormous strides in the field of tech that’s unrivalled by most others. That’s another reason to look forward to more growth, as the company is currently working on an Apple car. With so much to look forward to, it’s no wonder it’s a no brainer buy among Warren Buffett stocks.
Coca Cola
Another resilient stock? The Coca Cola Company (NYSE: KO). For over a century Coca Cola products have made their way into the homes of consumers around the world. But the best part? They still enter those homes even during the depths of even the most serious of recessions.
The stock has seen steady growth, with a few leaps in share price over the years. Since coming on the market in 1985, shares have climbed 4,035%! That comes to a compound annual growth rate (CAGR) of 10.3% over those 38 years. And that’s not likely to slow down.
Coca Cola continues to come out with more products, most recently with its own line of energy drinks. Yet, they all offer that same Coca Cola flavour that keeps bringing consumers back time after time.
So again, it’s no wonder that it’s one of the top Warren Buffett stocks to own not just during a recession, but of all time! And with a 3.02% dividend yield on top of that, it’s certainly one to keep on hand.
Bank of America
Finally, another of the top holdings among Warren Buffett stocks is Bank of America (NYSE: BOC), taking up 8% of Berkshire Hathaway holdings. Now this one gets tricky, because in this current market environment, American banks aren’t fairing all that well. That is, unless it’s Bank of America stock, which is why it’s a top Warren Buffett stock.
While the rest of the banks are continuing to struggle with higher interest rates and inflation, Bank of America has been different. The bank has managed well, with earnings supporting this. In fact, management stated the most recent second quarter of 2023 was “one of the strongest quarters and first half net income periods in the company’s history.”
Organic client growth continued, and was actually complemented by the benefits of higher interest rates. This increased revenue by 11% with net income up 19% to US$7.4 billion. Yet just in case, the company also increased its provision for credit losses by US$602 million to US$1.1 billion. So even in the face of economic challenges that put other banks in the red, Bank of America stock remains well in the black. That makes it yet another no-brainer buy among Warren Buffett stocks.
