3 Warren Buffett Stocks You Should Buy for Volatile Times

If ever there was a loyal investor who could carry his companies and investments well through difficult times, it is Warren Buffett.

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In his most recent shareholder letter, he says he prefers stocks, from whole companies to publicly traded stocks, and keeps the majority of his assets in stocks.

Why Buy Warren Buffett Stocks During Volatile Times? Let’s figure it out.

Why Buy Warren Buffett Stocks Now?

Why Buy Buffett Stocks Now? Buffett tends to invest in companies that have strongholds no matter what the economy is doing. You don’t have to look far – just to Berkshire Hathaway, Buffett’s insurance and investment empire. Thanks to its strong insurance business, subsidiaries and interests in solid companies, it is built like a tank in a missile strike zone. It’s a model to admire, and mimicking how Buffett builds his portfolio is another way to plan your own stock choices. (However, good luck. Buffett seems to have an omniscience that no one else has.)

Let’s take a look at the key considerations Buffett has before choosing stocks and how his preferences can help optimize your portfolio:

Business performance: how has the business performed? What is the return on equity in the long term? If a company’s main competitors can’t keep up, it could be a good opportunity in that industry. Debt: If a company has significant debt, then revenue will likely go toward trying to take care of it, especially if growth comes from adding more debt. Look for permanently low-indebted companies. Profit Margins: Looking at profit margins over several years is one of the best ways to identify the right companies for your portfolio. Product Uniqueness: What type of competitive advantage does a company have that can help it outperform its competition and position in the market? Stock Discounts: How Cheap Are Stocks? Companies that have good fundamentals, but trade below what they should – those that are undervalued – have the best chance of making a profit.

Putting all these considerations together creates the best combination of possibilities, even in times of volatility, and Buffett has declared it a science.

3 Warren Buffett Stocks For Volatile Times

When you look at all the companies Buffett loves, it’s hard to pick just three. However, we did our best for it, especially during volatility.

The Coca-Cola Company (NYSE: KO)

We couldn’t leave the Coca-Cola Company off the list. The Coca-Cola Company, a beverage company headquartered in Atlanta, Georgia, manufactures, markets and markets carbonated soft drinks, flavored and enhanced water and sports drinks, juice, dairy and plant-based beverages. It also produces tea and coffee and energy drinks, as well as beverage concentrates and syrups. It also produces fountain syrups for fountain stores such as restaurants and convenience stores. It sells under the brands Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Fanta, Fresca, Schweppes, Sprite, Thums Up, Aquarius, Ciel, dodadan, Dasani, glaceau smartwater, glaceau vitaminwater, Ice Dew , I LOHAS, Powerade, Topo Chico, AdeS, Del Valle, fairlife, innocent, Minute Maid, Minute Maid Pulpy, Simply, Ayataka, BODYARMOR, Costa, FUZE TEA, Georgia and Gold Peak brands. It operates through a network of independent bottling partners, distributors, wholesalers and retailers, as well as bottling and distribution operators.

In the fourth quarter and full year 2021, the global volume of unit cases grew by 9% (in Q4) and by 8% for the full year.

Net income was up 10% in the fourth quarter and 17% for the full year. Organic sales (non-GAAP) grew 9% for the quarter and 16% for the full year. Operating income declined 28% for the quarter and grew 15% in 2021. In addition, full year EPS grew 26% to $2.25 and comparable EPS (non-GAAP) grew 19% to $2.25. 32. Finally, cash flow from operating activities was $12.6 billion for the full year, up 28%.

During the fourth quarter, the company acquired the remaining 85% stake in BODYARMOR, a line of sports drinks and hydration drinks. The company also emphasized sustainability in the business with a new packaging target of 25% reusable packaging by 2030.

Bank of America (NYSE: BAC)

Bank of America Corp., headquartered in Charlotte, North Carolina, is a banking and financial holding company. It offers banking and non-banking financial services. It operates across consumer banking, global wealth and investment management, global banking and global market segments. The consumer banking segment provides credit, banking and investment products and services to consumers and small businesses. The global wealth and investment management segment offers a full range of investment management, brokerage, banking and pension products. The global banking segment covers credit-related products and services, integrated working capital management and treasury solutions for clients, as well as underwriting and advisory services. The global market segment includes sales and trading services and research to institutional clients in the fixed income, credit, foreign exchange, commodities and equity businesses. Bank of America also has a segment consisting of asset and liability management, equity investing, non-core mortgage lending and service businesses.

Fourth quarter highlights include net income up 28% to $7 billion, or $0.82 per diluted share, as revenues grew faster than expenses. Revenues were up 10% to $22.1 billion and net interest income was up $1.2 billion, or 11%, to $11.4 billion. Noninterest income increased 8% to $10.7 billion and loan loss provisions improved $542 million.

DaVita Inc. (NYSE: DVA)

DaVita Inc., headquartered in Denver, Colorado, provides medical care through renal dialysis services in the United States to patients suffering from chronic renal failure. The company also offers pharmacy services, disease management services, vascular access services, clinical research programs, physician services, direct primary care, end-stage renal disease, and comprehensive care.

For the full year 2021, diluted earnings per share from continuing operations were $8.90, up 39.3% from the prior year, and adjusted diluted earnings per share from continuing operations were $9.13, up of 25.8% compared to the previous year. Diluted earnings per share from continuing operations in the fourth quarter were $1.79, up 7.2% from last year and adjusted diluted earnings per share were $2.02, up 21.0% compared to the previous year.

Consolidated revenue was $2.944 billion for the quarter and $11.619 billion for the year-end as of December 31, 2021.

Bust volatility with these picks

He reads cover-to-cover annual reports, notes details of company progress and identifies strategies. He is also known for holding company stock forever. Focusing on these three will give you a solid strategy for volatile times.


This post 3 Warren Buffett Stocks You Should Buy for Volatile Times was original published at “https://www.entrepreneur.com/article/422637”

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