David Butler, The Motley Fool
5 min read
In This Article:
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Even as Buffett steps back from his role, there's a lot to be learned from Berkshire Hathaway.
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Within its portfolio, I am looking at insurance, tech blue chips, and credit card services.
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An important key to Buffett's strategy is to keep it simple and invest in sure things.
There's no need to go on about the success that Berkshire Hathway has seen under the stewardship of Warren Buffett and his team. They have outperformed the market and made billions in the process. I remain bullish on following the company's portfolio, even if Warren Buffett steps back from being in charge.
Greg Abel, his successor, and the rest of the Berkshire team have learned from the best of the best, and I think their picks hold sway. To that end, here are three Berkshire Hathaway stocks I like right now.
Financial services companies like Visa (NYSE: V) don't go out of style. This is a steady performer that pays over time. Over the last four years, the company has created double-digit-percentage revenue growth, and remains one of the preeminent players in credit and payment services.
Over the last few years, Visa has created double-digit rates of revenue growth, with similar trends in income, as net income reached $19.6 billion last year. I like how the company is slowly decreasing shares outstanding, which improves earnings potential for shareholders over the long term. On top of that, estimates are calling for earnings to continue to increase annually over the next four years. This is a steady stock that stands to deliver over time.
Overall, it's hard to bet against credit cards and their related services. More and more people are looking to simplify their purchases and move away from cash, and Visa continues to stand to gain from that. So long as the world economy continues to grow, and people facilitate the transfer of more and more money, Visa is definitely worth a look.
Apple (NASDAQ: AAPL) is in a slow patch, which makes me think this is a great time to get involved. Down over 20% in the past six months, Apple is faced with the task of creating new innovations in its lineup. The endless new iPhones really aren't that different from the ones before, and they are the bread and butter of Apple's business.
This doesn't mean that the story is over though. Artificial intelligence (AI) and burgeoning technology still leave Apple with opportunities, and this dip might be a perfect time to buy the stock. Yes, Warren Buffett has shrunk Berkshire's position in the company, but that doesn't mean it's a bad buy today. The company still sells a ton of iPhones, and revenue from that segment continues to grow.