3 No-Brainer Warren Buffett Stocks to Buy Right Now
Thursday, Nov 21, 2024 5:56 am ET
6min read Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, has a track record of successful investments that spans decades. By following his investment strategy, investors can gain valuable insights into the stocks that have the potential for significant growth. Here are three no-brainer Warren Buffett stocks to buy right now, based on his portfolio and market trends.
1. **Amazon (AMZN)** - Market Value: $167.6 billion
Amazon is Berkshire Hathaway's largest holding, with a market value of over $167 billion. The company's cloud computing business, Amazon Web Services (AWS), is a major growth driver, with earnings expected to grow at an annualized rate of 20%. Amazon's focus on high-margin businesses like cloud computing and advertising, driven by a strong management team, makes it an attractive long-term investment. Additionally, Amazon's early-stage growth opportunities in AI and retail media further enhance its potential for capital appreciation.
2. **Chevron (CVX)** - Market Value: $18.9 billion
Chevron, the fifth-largest holding in Berkshire Hathaway's portfolio, has a strong outlook with an incoming administration likely to be supportive of the oil and gas industry. The company expects to grow its free cash flow on average by more than 10% annually in the coming years. Chevron plans to continue its stock buybacks, reducing its outstanding shares by 3% to 6% per year. Income investors should find this Buffett stock especially attractive, with a forward dividend yield of 4%. Chevron has increased its dividend for 37 consecutive years and could soon extend that streak.
3. **Occidental Petroleum (OXY)** - Market Value: $15.0 billion
Occidental Petroleum is a favorite of Warren Buffett, with Berkshire Hathaway owning 27.2% of the company and a regulatory green light to acquire up to 50%. Occidental's operations back up Buffett's positive opinion, with the company's Wolfcamp XY/A development in New Mexico producing average oil per 1,000 feet of drilling length that was greater than 35% higher than the industry average. One big plus for Oxy is its innovation in technology, with construction underway on the company's Stratos direct air capture (DAC) facility in South Texas. If the company's DAC technology works as well as it hopes, carbon capture could become an important new market for Occidental over the next decade and beyond.
In conclusion, these three no-brainer Warren Buffett stocks to buy right now offer a mix of growth, income, and sustainability. Amazon's cloud computing business and early-stage growth opportunities, Chevron's strong dividend growth and free cash flow, and Occidental Petroleum's innovative technology and carbon capture initiatives make them attractive investments for long-term investors. By following Buffett's investment strategy and staying informed about market trends, investors can make well-informed decisions and capitalize on the potential for significant growth.
1. **Amazon (AMZN)** - Market Value: $167.6 billion
Amazon is Berkshire Hathaway's largest holding, with a market value of over $167 billion. The company's cloud computing business, Amazon Web Services (AWS), is a major growth driver, with earnings expected to grow at an annualized rate of 20%. Amazon's focus on high-margin businesses like cloud computing and advertising, driven by a strong management team, makes it an attractive long-term investment. Additionally, Amazon's early-stage growth opportunities in AI and retail media further enhance its potential for capital appreciation.
AMZN Basic EPS, Basic EPS YoY
2. **Chevron (CVX)** - Market Value: $18.9 billion
Chevron, the fifth-largest holding in Berkshire Hathaway's portfolio, has a strong outlook with an incoming administration likely to be supportive of the oil and gas industry. The company expects to grow its free cash flow on average by more than 10% annually in the coming years. Chevron plans to continue its stock buybacks, reducing its outstanding shares by 3% to 6% per year. Income investors should find this Buffett stock especially attractive, with a forward dividend yield of 4%. Chevron has increased its dividend for 37 consecutive years and could soon extend that streak.
AAOI, ACHR, ACXP, ALAB, ANTX...Market Cap, Turnover Rate
3. **Occidental Petroleum (OXY)** - Market Value: $15.0 billion
Occidental Petroleum is a favorite of Warren Buffett, with Berkshire Hathaway owning 27.2% of the company and a regulatory green light to acquire up to 50%. Occidental's operations back up Buffett's positive opinion, with the company's Wolfcamp XY/A development in New Mexico producing average oil per 1,000 feet of drilling length that was greater than 35% higher than the industry average. One big plus for Oxy is its innovation in technology, with construction underway on the company's Stratos direct air capture (DAC) facility in South Texas. If the company's DAC technology works as well as it hopes, carbon capture could become an important new market for Occidental over the next decade and beyond.
In conclusion, these three no-brainer Warren Buffett stocks to buy right now offer a mix of growth, income, and sustainability. Amazon's cloud computing business and early-stage growth opportunities, Chevron's strong dividend growth and free cash flow, and Occidental Petroleum's innovative technology and carbon capture initiatives make them attractive investments for long-term investors. By following Buffett's investment strategy and staying informed about market trends, investors can make well-informed decisions and capitalize on the potential for significant growth.
