Building a stock investment portfolio isn’t easy. One moment, you are tempted to wait for a dip, and another, you want to give in to the temptation of buying a stock at a premium with the hopes that it will generate strong returns.
While it is impossible to time the market, it makes sense to time your moves. Some stocks never disappoint, and loading up on these stocks on every dip can be an excellent move. No matter your investment goals, if you want to take home steady returns, here are the three stocks to buy the dip each time the market stumbles.
Berkshire Hathaway (BRK-A, BRK-B)
One of the most successful businesses today, Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B), has the same business model it has had for years, and history shows that it is a highly successful model. Very few investors need an introduction to the company.
It is very close to achieving a $1 trillion valuation, and if you are unable to invest in every blue-chip stock, investing in Berkshire Hathaway will mean getting a small part of all the best stocks.
The stock has beaten market returns for years and is also one of the best investments you can make. It is hands down the best stock to buy in every dip. The company has shown tremendous growth over the years and it owns some of the top blue chip stocks today.
With investments in more than 100 businesses, there are multiple reasons for the stock to thrive. It has a solid portfolio of diversified assets and has a significant investment in U.S. government agencies and corporations, corporate bonds and foreign governments.
No matter how the market moves, the overall portfolio enjoys high stability and delivers steady returns. The company can capitalize on the market conditions and ensure steady returns.
By investing in BERK stock, you get to invest in some of the largest corporations in the world including Apple (NASDAQ:AAPL) and Coca-Cola (NYSE:KO). It is a terrific business; you will get what you pay for. Trading at $403 today, the stock is up 11% year to date.
While many are concerned about the future of the company after Buffet, he has the right people nominated to succeed him. Buffet is a smart man who will ensure his absence doesn’t bring down the market.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) is a no-brainer stock to buy in every dip. The hottest stock of 2023, NVDA is up 81% year to date and is trading for $875 today. I recommended the stock when it was trading at $190 in 2022, and if you had bought it, you could be sitting on 360% gains.
One of the top tech companies, Nvidia is making big gains with its artificial intelligence (AI) investments. It is leading the AI race and reporting revenue of $22 billion in the fourth quarter and $60 billion in 2023. This could be the stock of the century, and if you hold it for long, you could take home massive gains.
There is a lot of excitement and talk about Nvidia announcing a stock split, and while there is no certainty of the same, if it happens, investors are set to benefit. Once that happens, the stock price should dip, meaning it is time to load up on it.
The company’s GPUs will have a major market share in 2024, and the demand will certainly overwhelm supply, meaning pricing power. Some of the biggest organizations in the world are waiting to get their hands on Nvidia GPUs and chips. While the production is expected to increase, it could also drive higher prices.
The company has impressed investors with strong quarterly results, and the trend should continue this year. It reported a 265% year-over-year increase in quarterly revenue while the data center revenue was up 400% YOY. It aims to make $24 billion this quarter but already has a strong order backlog. This is one stock you will never regret holding. Buy it on every single dip.
Novo Nordisk (NVO)
If there is one pharma stock to buy on every dip, it is Novo Nordisk (NYSE:NVO). The stock has been steadily moving upward over the past five years and is trading at $133 today. It is up 30% year to date and 88% in the year. While it is moving closer to the 52-week high of $932, it is worth keeping an eye on. Whenever there is a dip, buy the stock.
The company specializes in pharmaceuticals and focuses on anti-obesity treatments. It develops medications that help handle obesity, one of the biggest health concerns today and has recently announced tremendous success in weight loss trials.
Its oral weight loss drug, Amycretin has managed to produce 13.1% weight loss in just 12 weeks. It has now announced the second clinical trial phase and aims to produce results in 2026.
Obesity is a huge concern across the world and worldwide; focusing on this for years. The company also invests in established companies to achieve further growth and development.
It is also expanding through mergers and acquisitions and has agreed to purchase Catalent for $16.5 billion. This will give Novo Nordisk control of the sites and related assets Catalent owns in the U.S., Belgium and Italy.
The company has already enjoyed massive success with Ozempic, a type 2 diabetes drug and weight loss drug Wegovy. This news could give Amycretin bigger success than Ozempic. NVO stock is a long-term buy and hold and worth adding up on every dip. It also pays a dividend and has a yield of 1.03%.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
