3 Warren Buffett shares to buy now



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<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Even with stocks close to vertices, l & # 39; Legendary investor Warren Buffett thinks they are still a fantastic place to put money, allowing him to continue using hundreds of millions of dollars in cash each quarter through his holding company. Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B). "Data-reactid =" 11 "> Even with stocks near unprecedented highs, reputed investor Warren Buffett thinks they're still a fantastic place to put money. argument, Buffett continues to use hundreds of millions of cash each quarter through his holding company Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B).

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In recent years, Buffett has continued to buy old favorites in the banking sector but has also started adding new names in the technology sector. Here is an old and two new Buffett favorites that our Motley Fool contributors think it should be on your radar: JPMorgan Chase (NYSE: JPM), Coca Cola (NYSE: KO), and Amazon.com & nbsp;(NASDAQ: AMZN). "data-reactid =" 12 "> In recent years, Buffett has continued to buy old favorites in the banking sector, but has also started adding new names in the tech sector. Buffett's new favorites that our foolish contributors think it should be on your radar: JPMorgan Chase (NYSE: JPM), Coca Cola (NYSE: KO), and Amazon.com (NASDAQ: AMZN).

The cream of the American bank

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Nicholas Rossolillo& nbsp; (JPMorgan Chase): & nbsp;In the last 12 months, the total assets of the largest bank in America have not moved. Revenues and profits continue to rise, but investors continue to worry about a myriad of economic conditions that may or may not indicate difficulties for the global economy. Buffett took this opportunity to add JPMorgan to his portfolio during the fall of 2018 and has steadily increased the position since. "Data-reactid =" 14 ">Nicholas Rossolillo (JPMorgan Chase): In the last 12 months, the total assets of the largest bank in America have not moved. Revenues and profits continue to rise, but investors continue to worry about a myriad of economic conditions that may or may not indicate difficulties for the global economy. Buffett took the opportunity to add JPMorgan to his portfolio during the fall of 2018 and has steadily increased the position since.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "After recording record income and income in 2018 and another increase of 5% and 12%, respectively, during the first quarter of 2019, JPMorgan shares are trading at a modest 11.5 times the earnings of the past 12 months; Based on one-year earnings forecasts, the stock is valued at only 10.8 times earnings. This sounds like a powerful cheap price to pay for one of the most effective banking empires on the planet. "Data-reactid =" 15 "> After recording a turnover and record revenues in 2018 and a further increase of 5% and 12%, respectively, during the first quarter of 2019, the shares of JPMorgan traded at a modest rate of 11.5 times earnings over the last 12 months, and based on the one-year earnings forecasts, equities are valued at only 10.8 times the profits of the most efficient banking empires. of the planet.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Of course, a global economic downturn – maybe The trade war between the United States and China continues to intensify. inverse yield curve has much feared that tumultuous times are just around the corner. This helps explain why JPMorgan's shares are down again. If the gathering clouds rain on the parade of the economy, the stock could still fall. "Data-reactid =" 16 "> Of course, a global economic slowdown – maybe even a recession – could be prepared, the trade war between the United States and China continues to heat up, and a stubbornly reversed return. why the JPMorgan stock is down again, which helps to explain why JPMorgan stocks are down again, and if clouds gather in the rain, the stock may fall further, if at all.

Thus, following Buffett's lead and buying small amounts of securities over time could be a big step forward in the long run. Along the way, investors will get a 3% dividend yield on one of the best banking games of the moment.

A dollar bill folded in an upward arrow.

Source of the image: Getty Images.

You can not beat the real thing

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Anders Bylund (Coca Cola): Berkshire holds 400 million shares of the giant soft drinks. This represents a stake of $ 18.7 billion, or 9.4% of Berkshire 's total investment portfolio. And this could be the perfect time to follow Buffett in buying (more) Coke. "Data-reactid =" 31 ">Anders Bylund (Coca-Cola): Berkshire holds 400 million shares of the giant soft drinks. This represents a stake of $ 18.7 billion, or 9.4% of Berkshire 's total investment portfolio. And this could be the perfect time to follow Buffett in buying (more) Coke.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Up to 2019, the shareholders of Coca -Cola have The whole market has recorded a gain of 12% over the same period, measured by the S & amp; P 500 index. In a broader perspective, Coca-Cola shares gained 9% over the past three years and missed the 33% return in the P-500 state. This slight performance allowed Coke's dividend yield to rebound. between 3% and 3.6%, standing at 3.3% today. "data-reactid =" 32 "> So far, in 2019, Coca-Cola's shareholders have pocketed a return of only 4% The enlarged market has recorded a gain of 12% over the same period, measured by S & P 500 index. In a broader perspective, Coke's shares have gained 9% over the last three years and missed the S & P 500's 33% return. This weak performance allowed Coke's dividend yield to rebound between 3%. and 3.6%, compared with 3.3% today. .

Now the stock is on sale for real reasons. Coke 's business figure has declined in recent years as the company has reorganized the majority of its bottling activities internally. Some investors believe that the decline in sales is a drag on the transaction, but this movement has a considerable advantage. Coca-Cola's profit margins are up, driven by a more compact and efficient business model.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Coke shows its unique power in pricing and its universe first-class distribution network as the sector reshapes organic revenue growth and steady improvement in business volume. It is a stable company, generating a solid dividend and selling at a lower valuation than the market. It's time to dive into Coca-Cola. "Data-reactid =" 34 "> Coke demonstrates its unique pricing power and world-class distribution network, with the company remodeled consistently generating organic revenue growth and constant improvements in the volume of its business. This is a stable business, generating a strong dividend and a lower valuation than the market at the moment: it's time to dive into Coca-Cola.

It's time to buy this giant of the Internet and entertainment

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Todd Campbell (Amazon): Given how this is described in the media, you might think that Amazon has already captured every possible market share. "Data-reactid =" 40 ">Todd Campbell (Amazon): Given how this is described in the media, you might think that Amazon has already captured all possible market share.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This is not true Yes, Amazon is the biggest retailer in e-commerce, but its sales remain less than half of those of Walmartand e-commerce spending globally accounts for less than 10% of total retail sales in the United States. "data-reactid =" 41 "> This is not true Yes, Amazon is the largest e-commerce retailer, but its sales are still down. Walmartand, overall, e-commerce spending represents less than 10% of total US retail sales.

Instead, it may be that Amazon barely succeeds, especially when it comes to rewarding investors with a growth in their profits. In the past, the legendary expenses of the company to gain market share had led to significant net losses. But these investments are paying off now. In 2018, sales of $ 233 billion (+ 31% in one year) resulted in a net profit of $ 10.1 billion, against $ 3 billion in 2017. In the first quarter, sales increased by 17% to $ 59.7 billion and its net income more than doubled to $ 3.6 billion.

To be clear, the improvement in its profitability is not due to the fact that Amazon has stopped investing in innovation. It's just that Amazon has finally reached a point where revenues can fuel both innovation and earnings growth. For example, despite its growing revenues, innovation has made it a leading player in consumer electronics (tablets and virtual assistants), entertainment (Prime and IMDb), and enterprise technology services. (Amazon Web Services).

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "You are still not convinced that the Amazon is Stocks are trading about 8% below their peak of the fourth quarter of 2018, despite Berkshire Hathaway's announcement acquired nearly $ 1 billion in equities in the first quarter. Granted, nothing says if Berkshire will buy more from Amazon, but I would not bet against that. "Data-reactid =" 44 "> Are you still not convinced that Amazon is a buy? Think its stock is trading at around 8% less than their peak In the fourth quarter of 2018, Berkshire has acquired close to a billion shares in the first quarter, which is indisputable.Of course, nothing says if Berkshire will buy more from Amazon, but I would not bet against that.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More from The Motley Fool "data-reactid =" 45 "> More from The Motley Fool

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "John Mackey, CEO of Whole Foods Market, an affiliate of Amazon, is a board member of The Motley Fool. Anders Bylund owns shares of Amazon. Nicholas Rossolillo& nbsp; and its clients hold shares in Berkshire Hathaway (B shares), Coca-Cola and JPMorgan Chase. Todd Campbell owns shares of Amazon. Motley Fool owns shares and recommends Amazon and Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy."data-reactid =" 53 ">John Mackey, CEO of Whole Foods Market, an affiliate of Amazon, is a board member of The Motley Fool. Anders Bylund owns shares in Amazon. Nicholas Rossolillo and his clients hold shares in Berkshire Hathaway (B shares), Coca-Cola and JPMorgan Chase. Todd Campbell owns shares in Amazon. Motley Fool owns shares and recommends Amazon and Berkshire Hathaway (B shares). Motley Fool has a disclosure policy.

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