Warren Buffett stock picks could provide investors with some direction in these bizarre and surreal times where central banks’ intervention is the glue keeping the system from falling apart at the seams.
So, let’s zero in on how one of the world’s most successful investors is navigating these financial markets in the pandemic age of uncertainty.
Seasoned players of the game know that certainty doesn’t exist and that we are only working with the balance of probabilities, so with that in mind, Warren Buffett stock picks could be good bets in the future.
“let’s zero in on how one of the world’s most successful investors is navigating these financial markets in the pandemic age of uncertainty”
WARREN BUFFETT
The takeaway of this piece is that Warren Buffett stock picks flags a rotation to more cyclical stocks
Put simply Warren Buffett’s Berkshire Hathaway is positioning their portfolio for some type of economic rebound as the economy re-opens from the pandemic lock-down.
Few would doubt that what comes next is some type of economic rebound, although there is some debate over what shape the economic recovery will take. Nevertheless, the world’s largest consumers are cashed up. US household savings rate hit a record 33% last year as the pandemic lockdown put spending on ice. Meanwhile, stimulus checks increased household incomes and with lock-downs prevented a lot of discretionary spending households have a choice of either paying off their debts or increasing savings. Households have done the latter, with savings at a record high.
“Warren Buffett’s Berkshire Hathaway is positioning their portfolio for some type of economic rebound”
WEALTH TRAINING COMPANY
Moreover, corporations are also cashed up and ready to make investments as bond issuance hit an all-time high last year.
Households have the savings to consume and bushiness have available capital to make CAPEX, which means that stars could be aligned for an economic rebound in the second and third quarter of 2021
But the trajectory of the virus will have an impact on the shape of the economic recovery. In the worst-case scenario, a mutating virus with rolling lock-downs would send the economy into a spiraling depression.
But back to the theme Warren Buffett stock picks where six of the US-listed stocks Buffett’s Berkshire Hathaway (BRKB) have in their portfolio are already beat the S&P 500.
“Warren Buffett didn’t have a particular Stella year in 2020 with a quarter of Buffett’s roughly 60 major holdings beating the S&P 500 the past 12 months” – Wealth Training Company
Warren Buffett stock picks comprise of consumer discretionary plays
General Motors (GM) and Amazon.com(AMZN) plus tech giant Apple (AAPL). Analysts reckon that these stocks still have more than 15% upside until hitting their 12-month price targets, according to Investor’s Business Daily analysis of data from S&P Global Market Intelligence.
Buffett’s Berkshire Hathaway has also invested in communications services company Liberty Global (LBTYA).
Warren Buffett didn’t have a particular Stella year in 2020 with a quarter of Buffett’s roughly 60 major holdings beating the S&P 500 the past 12 months.
So perhaps Warren Buffett stock picks could have their moment in the sun in the second and third quarter of 2021.
