When it comes to long-term investing, few have managed to match Warren Buffett’s ability to pick exceptional stocks. Buffett’s winning picks have made him one of the most successful investors over the last five and a half decades…
Whether they are outright acquisitions or a minority stake, Buffett’s investments are closely watched by Wall Street. In the most recent filing for the Buffett-owned Berkshire Hathaway (BRK.A), the company disclosed it bought 20.91 million shares of Barrick Gold (GOLD) worth $613.2 million, indicating a 1.2% stake in the gold miner. Shortly after the filing, Barrick Gold stock gained 11%, adding to its year-to-date gains of 50%.
The Oracle of Omaha has also created massive wealth for Berkshire investors. Between 1965 and 2019, the stock generated annual returns of over 20% which means a $1,000 investment in Berkshire Hathaway in 1965 would have ballooned to $27.4 million in 2019.
Warren Buffett focuses on companies that manage to grow revenue and net profit at a steady rate and that have a capable leadership team. Let’s take a look at three such stocks that investors can look to buy right now and hold for the upcoming decade.
A technology giant
The first stock on the list is Apple (AAPL), a company that recently touched a $2 trillion valuation. Shares of Apple are trading at $505 and have returned more than 66% year-to-date. Apple has doubled its trillion-dollar valuation in less than two years and is Warren Buffett’s top holding.
Berkshire Hathaway owns 250.86 million shares of Apple worth $124 billion, indicating a 5.9% stake in the tech behemoth. It is Berkshire’s largest investment and accounts for over 50% of the company’s total portfolio cumulatively valued at $246 billion. In the last 10 years, Apple stock has returned 1,320% and has enough steam left given the company’s multiple growth drivers.
Apple’s Services revenue has been its fastest-growing segment for a few years now. The Services business has several subscription verticals including Apple Music, Apple TV+, Apple Arcade, and Apple Care. This portfolio will ensure a steady stream of recurring income across business cycles and will help mitigate volatility from its hardware segment.
Analyst upgrades Apple stock
The iPhone continues to remain Apple’s largest business segment and accounted for over 40% of sales in the most recent quarter. According to Wedbush analyst Daniel Ives, the upcoming iPhone 12 ‘supercycle’ is a near-term tailwind for revenue growth.
Despite tepid consumer demand amid COVID-19, Apple has a “once in a decade” opportunity in the next 12 to 18 months with regards to iPhone sales. Ives has forecast that…
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