Do you have $ 1,000? 4 Buffett stocks to buy and hold forever
When Warren Buffett took over Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) in 1965 the company was valued at $ 19 per share. Today, the investment conglomerate’s Class A shares are trading at around $ 424,200, which represents growth of about 2,226,200% across the stretch. With this kind of incredible performance, it’s no wonder he’s widely regarded as one of the best investors in history.
Berkshire’s massive stock size means its days of explosive growth are likely behind us, but investors will likely still be able to cash in on solid gains by following the actions of the company and its CEO. Read on to discover four Buffett backed stocks that look set to deliver long term gains.
1. Berkshire Hathaway
If you want to replicate the Oracle of Omaha investment strategy, the best way to do that is to own Berkshire Hathaway shares. Led by Buffett, Vice President Charlie Munger and a team of expert analysts, Berkshire has been one of the best-managed investment conglomerates of the past half century.
Berkshire Hathaway has investment holdings spanning multiple sectors and a legendary management team, so buying its stocks is a great way to add a mix of diverse and relatively low risk holdings to your portfolio. Investing in the company provides a convenient and reliable vehicle for broad exposure to the stock market and participation in other businesses and assets under the Berkshire umbrella.
In addition to the other stocks described in this article, Berkshire Hathaway offers investors exposure to companies such as Coca Cola, Bank of America, American Express, and many more. While Berkshire has a reputation for focusing on value games in proven business categories, the company has gradually evolved to accommodate a more technology-driven approach to investing. Buffett and Munger’s investment philosophy still plays a key role in guiding the business, but Berkshire is also building positions in forward-looking technology players, and this should benefit shareholders in the long run.
Apple (NASDAQ: AAPL) stands as the largest equity portfolio in the Berkshire Hathaway portfolio. While Buffett is known to have been generally averse to tech stocks due to their complex businesses and growth-dependent valuations, that has started to change in recent years, and his company has added more tech stocks to its holdings. . Berkshire’s big investments in Apple can be seen as the company’s emerging technology foundations.
Apple has built one of the strongest brands in consumer hardware, and that has paved the way for a robust ecosystem of subscription software and services as well. Apple will likely continue to occupy leading positions in mobile hardware and software, and it stands out as a likely beneficiary of new long-term growth trends including wearable computing, 5G, and augmented reality.
Buffett is known for liking companies that have strong brand strength, and Verizon (NYSE: VZ) certainly tick this box. The telecommunications company has the largest wireless subscriber base in the United States and regularly wins awards for having the best network coverage and customer service in the industry. As the availability of 5G is still ongoing and phones supporting next-gen network services are just starting to become widely available, Verizon is likely in the early stages of benefiting from a major transition.
And when it’s time to roll out the next generations of wireless networks and take a leap forward in upload and download speeds, there’s a good chance Verizon will continue to be at the forefront. Access to reliable, high-quality Internet service will only become increasingly central to business and daily life, and Verizon is a prime candidate to take advantage of this long-term trend.
Amazon (NASDAQ: AMZN) is one of the most influential companies in the world, and the tech giant is likely to continue to improve and innovate. With leading positions in e-commerce and cloud infrastructure services, Amazon is at the forefront of incredibly important industries that have far-reaching connections with a wide range of businesses. The company has also used its strengths in online retail and data analytics to establish a third place in the digital advertising market, and it looks set to continue to benefit from the continued growth in digital advertising.
The e-commerce, cloud services and digital advertising sectors still have long avenues for growth, and there is a good chance that Amazon can use its immense resources to expand into new categories of growth that strengthen overall activity. The stock has already performed exceptionally well and continues to offer attractive risk-return dynamics for long-term investors.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.