AAPL to V: Will these 3 Warren Buffett stocks trounce inflation?

June 15, 2022 11:25 AM PDT | By Mridul Gogoi
Follow us on Google News:

Highlights:

  • Warren Buffett, CEO of Berkshire Hathaway, is regarded as the wizard in picking stocks.
  • Investors look up to Buffett when deciding on a portfolio and closely follow his steps.
  • A strong portfolio of stocks can wade through an inflationary and recessionary period.

Warren Buffett often talks about his frugality while delivering lectures on personal finance. “I always buy quality merchandise when it is marked down,” Buffett would often say.  However, it is also his investing strategy, where he buys long-standing stocks when they trade lower.  

Buffett’s knack for picking stocks is the subject of speculation for investors across the globe. The cynosure of all eyes in the stock market, Warren Buffett always has invaluable tips for investors on how to protect one’s portfolio during an inflationary or recessionary period.

Now, the market is going through turmoil, plagued by four-decade high inflation, economic slowdown, and a likely recession in the coming months.

As investors are running for cover to protect their portfolios, we should take a cue from Buffett’s choice of stocks, touted as resilient against market shocks.

Also Read: Warren Buffett packs a punch as he goes bottom-fishing for stocks

AAPL to V: Will these 3 Warren Buffett stocks trounce inflation? © Djbobus | Megapixl.com

Also Read: OXY, CVX, KR among top 5 Warren Buffett stocks to watch now

3 Buffett stocks to consider amid inflation:

Apple (NASDAQ: AAPL)

Apple is not a cheaper stock, but it is currently marked down as Wall Street recoils under tremendous pressure of sky-high inflation and a looming recession. The S&P 500 has fallen 22% YTD, and several large-cap stocks, be it technology, consumer discretionary, or financials, have plunged so far.

It is true that Apple stock has slumped 26% YTD and has failed to keep up with its reputation. Although it did rally by 7% in March, the Apple stock is still waiting to take off.

But for Warren Buffett’s Berkshire Hathaway Apple shares make up almost half of its portfolio. Despite its fall this year, Buffett rushed to buy nearly US$160 billion worth of Apple shares by the end of March.      

Bank of America (NYSE: BAC)

Bank of America (NYSE: BAC) is another favorite of Warren Buffett, which is the second-largest holding of Berkshire Hathaway. As of December 31, 2021, Buffett’s company held 1.03 billion shares of BAC, valued at US$36.2 billion. 

During times of stock market upheaval, a stock like BAC might protect one’s portfolio because banks usually do well during interest rate hikes. Banks earn money as the interest rate increases.

BAC shares were trading at US$31.385, down 1.98%, at 2:43 PM ET on June 14, 2022.

Visa Inc. (NYSE: V)

Looking at Berkshire Hathaway’s 8.3 million Visa shares as of December 31, 2021, amounting to US$1.61 billion, one can gauge the value of this stock. The leader in digital payment, Visa stock is also a Buffett’s favorite.

A portfolio of strong stocks might withstand the storm of an unstable market. Visa stock was trading at US$192.95 at 2:51 PM ET on June 14, 2022, which is up 0.36% from its previous closing.

Bottom line:

Whether it is Buffett’s favorite or not, picking stocks for a long haul might provide some cushion against the periodic market turmoil. A strong portfolio might have a fighting chance to emerge unscathed after a rough patch in the market. After all, a bull market always follows a bear market.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.



Top Listed Companies