As the holiday season approaches, investors seeking gift-worthy stocks.
Many turn to the portfolio of renowned investor Warren Buffett, CEO of Berkshire Hathaway (NYSE:BRK-B). After all, the focus is on gifts that keep on giving. Therefore, investments can appreciate and generate dividends over time, providing long-term returns and retirement options.
Buffett serves as a role model for long-term investors, offering insights into smart money moves in the market. His successful tech exposure and picks in sectors within his expertise make them noteworthy additions to the watchlist. So, his top picks are essentially guarantee buys. Investors would do well to keep a close watch on his market decisions, strategies, and moves.
Let’s explore these three stocks for a thoughtful and lasting holiday stocking stuffer.
Restaurant Brands (QSR)
In the midst of the pandemic and high inflation, consumers sought affordable fast food options over dining out. As sentiment improves, Restaurant Brands (NYSE:QSR) stands to benefit.
Priced at $69, QSR stock is undervalued with significant growth potential. And, it’s up 7% year to date (YTD) but below its 2019 peak of $78. Further, JP Morgan Chase raised the price target to $74, indicating a buy rating.
On Thursday, Restaurant Brands achieved a significant technical milestone as its Relative Strength (RS) Rating improved to 82, up from 79 the previous day. The RS Rating, ranging from 1 to 99, assesses a stock’s price performance over the past 52 weeks compared to other stocks. Thus, it provides valuable insights for investors seeking strong performers.
Apple (AAPL)
After an autumn decline, Apple (NASDAQ:AAPL) reclaimed its status.
As the world’s most valuable publicly-traded company, it surpassed a $3 trillion market capitalization on December 5. Up 55% in 2023, Apple’s stock reached this milestone for the first time since August. This resurgence reflects investor confidence in Apple’s stability, strong cash flow, and robust shareholder returns. Hence, it’s positioned as a safe haven asset amid economic uncertainties.
Additionally, holiday sales provided an immediate boost to Apple’s profits. But its sustained success in Asian markets is a key driver of long-term stability. Despite a minor dip in 2023, Apple consistently expanded its market share in Asia. By holding only 16% of the total addressable market, this suggests significant growth potential.
Despite the high stock price, analysts express optimism, with 74% recommending a buy. With a consensus fair value around $200 per share, Apple still has room to extend its growth trajectory.
Berkshire Hathaway (BRK-B)
Warren Buffett’s conglomerate, Berkshire Hathaway, reported a resilient Q3. With a 40% year-over-year (YOY) surge in operating profit, it topped $10.8 billion.
Established in 1889, the company operates over 90 subsidiaries in diverse sectors. Notable entities like GEICO and General Re contributed. With a historic cash reserve of $157.2 billion representing 20% of its market cap, Berkshire Hathaway displays financial strength.
Buffett’s success stemmed from cashing in on higher short rates, securing over 5% on cash. With strategic bond yield moves, Buffett purchased short-term Treasury bills. Additionally, $1.1 billion went into share buybacks in the quarter, reaching $7 billion for the year. This solidifies BRK-B as a robust stock to retain.
Buffett’s firm strategically shed holdings, boosting cash reserves for economic resilience and future investments. Omaha-based Berkshire Hathaway faced a notable event with Vice Chairman Charlie Munger’s recent passing. Consider Berkshire as a lasting legacy beyond the Buffett-Munger era.
On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL, BRK-B. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
