The best Warren Buffett stocks to buy for $1,200
Warren Buffett. and his company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B ) No login required. In the year Between 1965 and 2023, Berkshire’s stock has returned a total of 4,384,748%, or a compound annual gain of 19.8%. At the same time, the broad benchmark S&P 500 Including dividends, it generated a total return of 31,223% or a compound annual growth rate (CAGR) of 10.2%. This dominance is one of the many reasons why investors respect Buffett and Berkshire.
While you should never invest without due diligence, you can follow Berkshire’s portfolio for investment ideas or to check if Berkshire is buying or selling stocks that you might be interested in. Here are the best Buffett stocks to buy under $1,200.
Berkshire bought first coca cola (NYSE: KO ) In the year In the 1980s, and Berkshire has been a big winner for several decades as a shareholder. Coca-Cola is Berkshire’s fourth-largest holding, accounting for 8.4 percent of its total $297 billion stock portfolio.
Why does Buffett love Coca Cola so much? of Division. In Berkshire’s 2022 letter to shareholders, Buffett wrote that the dividend he received from the company in 1994 was $75 million. In the year By 2022, that dividend would grow 838% to $704 million. Today, Coca-Cola’s dividend yield is approximately 3.1%. The company has increased its dividend for 62 consecutive years, placing it in an exclusive club known as the Dividend Kings. It’s easy and safe for Berkshire to cash and cash checks every year.
Coca-Cola stock has not performed well in recent years. While the broader market is up more than 53 percent in 2023 and 2024, Coca-Cola’s stock is down 2 percent. In times of high inflation, consumer staples are seen as a hedge. People typically buy essentials in a still-expensive economy, and companies typically can pass price increases on to customers.
However, once the Fed stopped raising rates and inflation slowed, consumer staples became less attractive. Additionally, as consumers begin to hit their tipping points, they begin to have lower pricing power.
While the environment may remain challenging for consumer staples, many analysts see Coca-Cola as an outlier due to its strong execution in the U.S. and renewed focus on global franchising. While waiting for these efforts to translate into stock appreciation, investors can collect a steady and growing stream of income every three months.
After starting a new stake in the American oil producer Occidental Petroleum (NYSE: Oxy)Berkshire bought the stock like there was no tomorrow. Occidental is the sixth-largest position in Berkshire’s portfolio, and Berkshire now owns more than 28% of outstanding shares.