Warren Buffett invests for the long run! I think he might like these LSE shares now

July 5, 2021 0 Comments

first_img Since the second half of February, stock markets have been tanking. The City is now concerned about a potential deep, global economic slump, which some analysts fear could be worse than the 2008–09 financial crisis. Hence the recent stampede for the exits. But on the other side of the equation we’ve legendary investors who don’t worry too much about market crashes in general. For example, Warren Buffett invests for the long term and does not panic sell when markets crater. Impressive returnsSince the late 1950s, Buffett and his long-time partner Charlie Munger have transformed Berkshire Hathaway from a struggling textile manufacturer to a holding company with a market capitalisation greater than $550bn. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…It now has the most expensive share price of any company in history. In 1964, each Class A share was just shy of $20. Today it’s upwards of $268,000 (no, that’s not a misprint).  Put another way, Buffett has been making, on average, 20% a year. An investor who invested £1,000 in Berkshire Hathaway 50 years ago would now have over £9m! Buffett firmly believes that stocks outperform all other asset classes over time. However, he’s not one to buy shares in a company at any price. Indeed, the Oracle of Omaha is regarded as the king of value investing.Earlier in the year, Buffett released his annual shareholder letter. Although Buffett is bullish on stocks long term, he said “that rosy prediction comes with a warning: Anything can happen to stock prices tomorrow”.Although Buffett invests for the long haul, he regards the stock market as unpredictable. And within days of his warning in February, markets globally did indeed crash. For example, year-to-date, the FTSE 100 index is down about 28%.However he doesn’t think there’s any need for worry for the individual who doesn’t use borrowed money and who can control their emotions. To him, if you’re not thinking of owning the stock you’ve just bought for at least a decade, don’t even think of owning it for a day. Therefore, falling prices don’t make him nervous because he has seen equity markets recover time after time. Instead, he patiently waits.One of my favourite Warren Buffett quotes is “opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”. In other words, he’d recommend retail investors to buy stocks as prices decline.What Buffett invests inBuffett’s preferred investments areLarge-cap stocksFinancials, including banks and insurance companiesConsumer brandsStocks that pay dividendsFor the most part, Buffett invests in US-based stocks. Yet the FTSE 100 offers plenty of choices in which he’d have possibly considered investing had he been UK-focused. And if I were to take Buffett’s approach, I’d be now willing to invest in many of these solid companies, especially as their valuations have fallen.One point I’d need to remind our readers that on 31 March, UK banking groups scrapped dividends and share buybacks for the rest of the year. Therefore, I am not including any banking shares in my list at this point.So here’s a shortlist for you to analyse furtherAviva – dividend yield 12.1%BP – dividend yield 9.4%British American Tobacco – dividend yield 7.1%Coca-Cola HBC AG – dividend yield 3.2%GlaxoSmithKline – dividend yield 5.7%Legal & General Group – dividend yield 9.9%National Grid – dividend yield 5.5%Tesco – dividend yield 3.1%Unilever – dividend yield 3.6% tezcang has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline and Unilever. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: The Motley Fool Warren Buffett invests for the long run! I think he might like these LSE shares now I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares See all posts by Tezcan Gecgil, PhD I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Tezcan Gecgil, PhD | Sunday, 5th April, 2020 last_img

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