The Motley Fool‘s Dan Caplinger offers a look at Warren Buffett’s three favorite stocks for 2021. As of his most recent report, Warren Buffett’s Berkshire Hathaway had more than $150 billion invested in just three stocks. Although they’re not new stock picks, the fact that Buffett still has confidence in these companies is a recommendation in itself.
Here’s a countdown of Buffett’s three favorite stocks for 2021.
3. Coca-Cola: A 3.4% dividend yield keeps cash flowing into Berkshire’s coffers. While the beverage giant might not be a top growth stock, it has a loyal following that protects it from economic downturns as well.
2. Bank of America: Buffett has been optimistic about the longer-term prospects for the financial industry, and B of A now pays a dividend yield above 2.25%.
1. Apple: Berkshire’s 944 million share stake in Apple makes up almost half of all of its publicly traded stock holdings, and it’s worth more than $135 billion at recent prices… Berkshire doesn’t seem to have any doubts about Apple’s long-term staying power. Investors shouldn’t necessarily count on a repeat of the extremely strong performance that has sent Apple shares soaring more than 275% in just the past two years. Yet with the success of the 5G-enabled iPhone 12 signaling the beginning of another huge upgrade cycle for the mobile device giant, Apple still has upside.
MacDailyNews Take: A vote of confidence from Warren Buffett is invaluable. Berkshire’s 944 million share stake in Apple, not to mention topping Warren Buffett’s list of favorite stocks, is quite the vote of confidence!