If you want to get in on long-term valuable stocks, then Warren Buffett stocks are certainly ones to consider. The Oracle of Omaha has a long history of strong growth from investing in value stocks. And that long history of growth means investing long term.
This is why today we’re going to look at three that investors can pick up even if they just have $300 to spend. These are the best of the best recommendations from Warren Buffett. So, let’s look at why we’re considering The Coca-Cola Company (NYSE: KO), Bank of America (NYSE: BAC), and Sirius XM Holdings (NASDAQ: SIRI).
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Why Buffett bought them
First off, let’s look at why Warren Buffett bought these stocks to begin with, starting with Coca-Cola stock. The company is well known not just in the United States but throughout the world. And that’s why Buffett likes it the best. No matter the market and economic status, people reach for a Coke. The company also has a strong customer base, making it a clear buy. It also offers stable growth, long-term potential, and a long dividend history.
Bank of America stock is also another strong value play. The bank looked valuable at the time of buying, where Warren Buffett was able to become a major shareholder and have a say in future plans. Now, the bank is large and diversified, offering today’s investors a long-term economic recovery play.
As for Sirius XM, Buffett bought the stock because it is the sole licensed satellite radio operator. That unique status is something that Warren Buffett must love. And while it’s not his largest holding, it could increase for major growth.
Into earnings
Now, for today’s investor, let’s look at earnings to see whether these stocks are worth your consideration. For Coca-Cola stock, the company reported revenue of $10.1 billion, up 10% year over year. Further, earnings beat expectations at $0.65 per share. This came from growth across all regions as well as strategic marketing initiatives.
Bank of America stock also saw strong growth, with revenue up 12% to $24.5 billion. The stock met analyst estimates at $0.88 per share. However, this could allow today’s investors a deal if they’re looking at it as a recovery stock. Net income, meanwhile, rose thanks to higher interest rates.
Finally, Sirius XM stock reported fourth-quarter earnings with revenue missing estimates but earnings beating analyst reports. Revenue made slight gains of 0.2% to US$2.28 billion. Subscriber revenue fell 0.3%, so it looks as though the company should be able to get those back when consumption resumes.
Future potential
So, what do these Warren Buffett stocks offer investors for the future? Well, for Coke, it’s obvious. The same reasons Buffett bought still apply today. The company has strong financials, global reach, and a loyal following. That’s unlikely to go away, especially with a huge 3.17% dividend to grab.
Bank of America stock, as mentioned, offers the same value play now as it did for Buffett back when he brought shares. The company is now financially stable and should see shares increase as the market improves. And again, you can grab a 2.86% dividend yield.
Finally, Sirius XM stock may have been sold back in 2020, but Buffett is back. And that purchase was very recent. So, if you’re looking for a new holding, then this could be the best one — especially with shares at just US$4.75 as of writing and a 2.25% dividend.
