Investors should always ask themselves what would Buffett do? We don’t mean “What would Jimmy Buffett do?” like Alan Jackson sang in It’s 5 o’clock Somewhere. No, what would the Oracle of Omaha, the world’s greatest investor, Warren Buffett do?
Well, Buffett has already done it. Buffett’s Berkshire Hathaway has bought into the first stock on our list, already becoming the fourth-largest overall holding of his company. Here’s a look at that stock and four other opportunities, as reported by US News.
The bear market has brought about discounts, making some excellent entry points for many leading companies. Here are five of the best.
At the time of this writing, shares closed at $144.19.
The yields in the energy sector are beginning to return. And Warren Buffett’s Berkshire Hathaway investment in leading energy companies should give confidence to other investors.
At the time of this writing, shares closed at $160.30.
Supply chain issues are easing and that should help automakers rebound. Given the energy prices, Toyota is known for its variety of fuel-efficient models. Toyota shares are going for about 10 times earnings.
At the time of this writing, shares closed at $306.59.
No matter what happens in the real estate market, home repair never goes away. And when people are reluctant to buy, they remodel. Home Depot shares are selling for about 17 times earnings right now.
At the time of this writing, shares closed at $199.42.
Stryker is one of the world’s largest medical device and supplies companies. Given the aging demographics of the US and Europe, this is a market that’s only going to grow. Stryker’s product line includes joint implants, surgical instruments, and endoscopic and neurovascular devices. And with so many elective surgeries put off due to the pandemic, demand for the company’s products is likely to be booming soon. Shares are selling for 21 times forward earnings.
At the time of this writing, shares closed at $51.91.
Citigroup is one of the most affordable big banks in the United States. And guess who is loading up on Citigroup stock? Warren Buffett’s Berkshire Hathaway. Shares are trading at just 5.6 time earnings, while offering a 4.4% dividend yield. With the stock price of $51.99, it has a book value of $90 per share.