Plenty of stocks have rebounded in 2023, with Nasdaq 100 up about 35%, emphasizing the dominance of blue-chip giants. Blue-chip companies offer strong business models and consistent returns, often with increasing dividends, making them appealing to conservative investors. Diversifying portfolios with these world-class stocks can provide stability during market turbulence, even for risk-tolerant investors.
Accordingly, I present three of my favorite world-class stocks to buy right now. These are companies most long-term investors can do reasonably well buying and holding, at essentially any price (historically speaking).
Restaurant Brands (QSR)
Restaurant Brands (NYSE:QSR) is a company I’ve been bullish on for a long time. This fast food giant owns key brands such as Tim Horton’s, Burger King, Popeye’s Louisiana Kitchen and Firehouse subs. Via these banners, the quick service restaurant company has provided strong growth. Accordingly, the company has parlayed this growth into strong dividend growth with its yield currently sitting at roughly 3.3% (not bad at all).
Patrick Doyle, formerly at Domino’s (NYSE:DPZ), has led this company through some difficult times and come out on the other side with the company posting numbers many wouldn’t have thought possible just a few years ago. Restaurant Brands reported a 9.7% revenue increase in May, along with 10% global comparable sales growth in Q1. Additionally, adjusted EBITDA surged 15.6% to $588 million.
Restaurant Brands’ focus on menu innovation, digital advancements, and operational improvements, under the Reclaim the Flame plan, boosts customer experiences and franchisee ad fund contributions. In any sort of market, Restaurant Brands’ core business should do well. That’s why it’s a stock I like at these current levels.
Alibaba (BABA)
Alibaba (NYSE:BABA) is restructuring its operations into six specialized groups to ensure the success of each segment independently and prevent setbacks from spreading.
Alibaba’s integrated supply chain model, built on its Chinese supply base, and its commitment to localization and cultural understanding create value for customers in various markets. The synergy between different Alibaba business groups, like Tongyi and AIDC, highlights the company’s ability to generate value through its integrated ecosystem, driven by enhanced logistics and service experiences.
Despite macro challenges and economic troubles, Alibaba’s outlook is improving, with the stock trading mostly sideways. Chinese stimulus efforts may provide a more favorable backdrop, and undervalued shares and analyst price targets suggest a potential 49% upside in the next year.
Alibaba is poised to transition into a turnaround story, leveraging its resources and talent for quantum computing advancements in logistics, finance, materials science, and pharmaceuticals. The future seems bright with BABA stock offering a long-term value play in an emerging technology trend.
Berkshire Hathaway (BRK-B)
Berkshire Hathaway (NYSE:BRK-B) stock is soaring, backed by impressive Q2 results including a 6.6% year-over-year increase in operating income to $10.04 billion. The company’s insurance underwriting business also saw a 74% Q2 boost to $1.25 billion. Additionally, Berkshire’s cash holdings reached nearly $150 billion in Q2, with high interest rates driving substantial returns, while a $26 billion unrealized gain from investments adds to its success.
Berkshire Hathaway’s diversified portfolio offers stable earnings despite challenges in some segments. Q2 operating earnings increased 6.6%, supported by higher insurance income. The company boasts a substantial insurance float of $166 billion and over $147 billion in cash for strategic investments during market fluctuations. It’s a long-term hold for many investors.
Berkshire Hathaway is in the $354-$392 range from its 2022 low, suggesting a final phase in the current daily cycle. While gains are possible, there’s increased risk. The overall trajectory remains bullish, with a new bullish sequence in the multi-year cycle. Watch for buying opportunities during daily pullbacks.
On the date of publication, Chris MacDonald has a LONG position in BRK-B, QSR, BABA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
