Some of Warren Buffett’s shares were absolutely smelly. There I said it. But I still think Buffett is one of the greatest investors of all time and a true national treasure.
I also believe that the Oracle of Omaha has quite a few winners in it Berkshire Hathawaysay (NYSE: BRK.A) (NYSE: BRK.B) portfolio as well. Here are three Buffett shares that are especially worth buying at the moment.
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Buffett’s Second Favorite Stock: Apple
Everyone knows that Berkshire Hathaway itself is considered Buffett’s favorite stock. But his second favorite is definitely appeal (NASDAQ: AAPL). Buffett referred to the technology giant as ‘probably the best business I know in the world’. With that kind of endorsement, it’s no surprise that Apple’s largest stake in Berkshire.
Some may think that Apple shares are at a nosebleed level and shares are trading at 31 times the expected earnings. My opinion, however, is that there is enough space to run. I’m not alone: Daniel Ives, an analyst at Wedbush, believes that Apple could jump at least 27% next year and maybe even shoot up more than 60%.
Ives and I share the same positive view on the prospects for the iPhone question. The “G” in 5G (supported by the new iPhone models) may be for ginormus instead of generation. I expect sales of iPhones and the ecosystem of services built on them to continue to rise.
As Steve Jobs said earlier, there is something else. I’m cautiously optimistic about Apple’s plans for a self-driving car. The company apparently works together Hyundai and Kia to manufacture the cars. Apple does not have to win a large share of the market for self-driving cars to increase its growth.
2. A good addition in 2020: Bristol Myers Squibb
I have the purchase of Bristol Myers Squibb (NYSE: BMY) shares as one of Berkshire’s best additions to its portfolio last year. My opinion is that the large pharmaceutical stock should do several things.
To begin with, BMS is dirt cheap. Its shares are trading at eight times expected earnings. Granted, there is a reason behind this discount valuation. The latest blood cancer remedy Revlimid will be confronted by the company in 2022.
However, the BMS series includes several other growth operators. The blood thinner Eliquis, the drug for autoimmune diseases Orencia, and the immunotherapy against cancer Opdivo and Yervoy have good prospects. Newer drugs, including Reblozyl and Zeposia, should be a star in the company. Thus, just-approved cell therapy needs Liso cell and another promising pipeline candidate ide cell.
As an added bonus, BMS offers an attractive dividend that currently yields more than 3%. I think this great pharmacy was an excellent choice for Buffett in 2020 and still remains a great choice for investors.
3. Load in advance: Mastercard
Mastercard (NYSE: MA) is not a new interest in Berkshire’s portfolio. The fintech giant has been a big winner for Buffett for some time. I expect it to sustain its winning style.
Some may, of course, think that Mastercard looked like a loser based on its Q4 results. Net income and earnings declined year on year. The COVID-19 pandemic hurt travel spending, which reduced Mastercard’s cross-border volume by 29%.
However, Mastercard needs to see its business bounce back nicely as concerns about COVID-19 subside. I’m hopeful that this will happen exactly as more people around the world get vaccinated in the next few months.
In the longer term, Mastercard will benefit from the move to cash. I think this is one of the best growth stocks Buffett owns.