3 Berkshire Hathaway Stocks to Buy Hand Over Fist in January

Berkshire Hathaway It is one of the world’s leading investment conglomerates. Through strategic investments, subsidiary businesses in the insurance and logistics sectors, and a systematic business approach, the company has grown into a company valued at approximately $800 billion.

Led by Warren Buffett and his team, Berkshire Hathaway and its investments have influenced countless investors globally. Still, copying Berkshire’s portfolio, stock-for-stock, may not be the best option because your goals and risk tolerance may not fully align.

But if you’re an investor looking to buy Berkshire Hathaway stock right now, here are three stocks worth considering.

1. Coca Cola

Coca Cola (Watt-hours -0.15%) has been a staple of Berkshire Hathaway’s portfolio since its first investment in 1988. Berkshire Hathaway has since amassed 400 million Coca-Cola shares, equivalent to about 9% of the company’s stock.

In the United States, Coca-Cola recorded a market share of 46% in the carbonated beverage market as of the end of 2022, far surpassing its largest competitor, Coca-Cola. pepsico. Even though Coca-Cola has dominated the market for decades, I appreciate the way the company has not yet become complacent and continues to prioritize innovation and adapt to ever-changing consumer preferences. A testament to this is Coca-Cola’s Innovation Innovation team, whose sole purpose is to drive product development and explore new market trends.

Coca-Cola’s stock price has underperformed over the past year. S&P 500 Over the past decade, dividends have generally been a draw for investors. Coca-Cola’s quarterly dividend is $0.46, and its trailing 12-month yield is approximately 3%. What’s even more impressive is that the company has increased its annual dividend for 61 consecutive years. dividend king. In the past decade alone, Coca-Cola’s quarterly dividends have increased by more than 50%.

KO Dividend Data from YCharts

Coca-Cola isn’t a growth stock that consistently returns double-digit percentages year after year, but it can provide investors with dividends that are as stable as those you’ll find in the stock market.

2. Visa

Visa (V 0.03%) As a global leader in digital payments, we offer a broad and continually expanding range of services. It operates in more than 200 countries, has more than $4.3 billion in cards in circulation and is accepted at more than 130 million merchants.

Visa’s reach is key competitive advantageThis is mainly due to network effects. Imagine you are a retailer and you have to choose which cards to accept. We understand that customers are more likely to have a Visa card than other options, so they are more likely to choose Visa. If you don’t accept Visa cards, you could be missing out on sales opportunities. The same goes for consumers trying to get a card. Many people prefer Visa cards because businesses that accept them are more likely to accept Visa.

Visa’s recent growth is reflected well in its financials. Over the past decade, revenue has grown 172%, but net income and free cash flow have grown faster, indicating that the company is operating more efficiently.

V Revenue (Quarterly) data from YCharts

Although the United States is a leader in digital payments, much of the world still operates in a cash economy. This presents many market opportunities for Visa as the country transitions to digital and electronic payments. This is a stock you can comfortably own for the long term.

3. Amazon

Amazon (AMZN 0.46%) This is not a company that really needs any introduction. It has become famous all over the world due to its e-commerce business. But it likely won’t be Amazon’s e-commerce business that will drive much of its growth in the near future. Supporting this may be the logistics network.

Amazon recently announced “Supply Chain by Amazon,” a set of fully automated supply chain services. This service allows sellers to take advantage of Amazon’s complex logistics, warehousing, distribution, fulfillment capabilities, and transportation (including international).

Amazon has invested billions of dollars building out its logistics network, and Amazon’s supply chain allows the company to leverage this outside of its core e-commerce business.

E-commerce will continue to be a major source of revenue for Amazon, and Amazon Web Services will continue to be a major revenue generator. But it’s encouraging to see other sectors starting to add their share a little more. In the third quarter of 2023, Amazon’s third-party seller services revenue increased 20% year-over-year (YOY). Advertising leads the way, growing 26%.

Amazon is involved in many high-growth industries, so there will likely be plenty of value returned to shareholders as the company continues to expand across industries.