Top Warren Buffet-Endorsed Shares to Invest in with a $250 Budget Presently
Top Warren Buffet-Endorsed Shares to Invest in with a $250 Budget Presently
Warren Buffett is renowned for his ability to discover top-notch, undervalued companies to invest in. With his guidance, Berkshire Hathaway (BRK.B -0.76%) (BRK.A -0.75%) has surpassed the returns of stock market benchmarks like the S&P 500 index.
For retail investors seeking investing ideas, Berkshire Hathaway's extensive stock portfolio can be a valuable starting point. Although there's no guarantee that the companies Berkshire invests in will yield positive returns, their fundamentals have been scrutinized and endorsed by one of the world's most competent investors.
Here are three Buffett stocks that I deem suitable investments at present. You can invest around $250 to acquire one share of each to kick-start your portfolio.
1. Coca-Cola
Coca-Cola (KO -0.50%) is a globally recognized consumer brand and a well-liked Buffett pick. Buffett himself admits to consuming several of its famous soft drinks daily. With a valuation surpassing $25 billion, Coca-Cola is Berkshire Hathaway's fourth-largest stock holding, making up nearly 9% of the investment portfolio.
Coca-Cola's continued success can be attributed to its diversification beyond its signature brand and traditional sodas. Its product portfolio now encompasses more than 200 brands, including sports drinks, flavored water, juices, and dairy products.
In its fiscal third quarter, which ended Sept. 27, organic revenue grew by 9% year over year and comparable currency-neutral earnings per share (EPS) increased by 13%. The company's focus on higher prices and a strong brand portfolio supports optimistic growth prospects.
Currently, a recent price correction offers a compelling opportunity to acquire shares of this blue-chip titan at a discount, anticipating a possible upsurge.
2. Kraft Heinz
Although Buffett has had numerous investment victories throughout his career, he admitted to overpaying for Berkshire Hathaway's significant position in Kraft Heinz (KHC -1.04%) in 2015. The consumer goods and packaged foods powerhouse has experienced lengthy sales declines in a shifting economic environment. Consequently, the stock has underperformed, losing more than half its value from its 2017 peak.
As of recent, Kraft Heinz presents an opportunity for a revival. Buffett seems optimistic about the new CEO and the company's potential to recover. Kraft Heinz is currently generating positive adjusted earnings growth while executing a strategic plan to rejuvenate growth by focusing on its core strengths.
The main appeal of investing in Kraft Heinz is its generous dividend, which offers a 5.2% yield at the current share price. The dividend is supported by robust underlying free cash flow and consistent profitability. Regardless of when the company's recovery transpires, investors will be compensated generously while waiting for it.
3. DaVita
Although DaVita (DVA -2.23%) may not be a familiar name, it embodies Buffett's value investing approach and long-term mindset. The kidney dialysis services provider is one of the largest healthcare service providers in the United States, operating in 13 other countries.
DaVita has been positively impacted by broader healthcare trends, including a rising elderly population and growing international demand. Berkshire Hathaway owns about 44% of the company's outstanding shares – a stake it has built since its initial purchase in 2011.
DaVita has excelled in 20xx thanks to its strong earnings, delivering a 44% return year to date. Given the company's outlook for sustained profitable growth, DaVita should continue to reward shareholders.
A final thought
A valuable investing lesson that can be derived from Buffett is the need for patience and a long-term investment approach. In my view, shares of Coca-Cola, Kraft Heinz, and DaVita could serve as excellent additions to a diverse portfolio, helping individuals reap the benefits of compound growth over the long term.
Investing in the stocks recommended by Warren Buffett, such as Coca-Cola, Kraft Heinz, and DaVita, can be a wise financial strategy. These three companies are currently performing well and have been endorsed by one of the world's most successful investors. For instance, Coca-Cola's extensive product portfolio and positive earnings growth make it an attractive investment opportunity, offering the potential for substantial returns in the long term.
When it comes to money management and investing, Buffett emphasizes the importance of patience and a long-term perspective. By investing in these undervalued companies with strong fundamentals, aspiring investors can potentially benefit from the power of compound growth over time.