5 Warren Buffett stocks to fortify your investment portfolio


It can be instructive to study the investment portfolios of expert investors to uncover potential gems.

Especially since the investor in question is none other than Warren Buffett.

Known as the “Oracle of Omaha,” Buffett has earned a reputation for savvy investments that have stood the test of time.

He also has strong business acumen and is known for his shrewd investment choices.

We can take a look at what he has through the mandatory documents submitted by his investment vehicle Berkshire Hathaway Inc. (NYSE: BRK.B).

Here are five stocks held by Buffett that can ensure the resilience of your investment portfolio.

Apple (NASDAQ:AAPL)

Apple needs no introduction, being the largest company in the world with a market capitalization of US$2.4 trillion.

The tech giant shows no signs of slowing down as it reported a bumper earnings package for the second quarter of its fiscal 2022 (2Q2022).

Revenue rose 9% year-on-year to $97.3 billion, a record for its March quarter.

Operating profit rose 9% year-on-year to $30 billion, while net profit edged up 5.8% year-on-year to $25 billion.

It’s worth noting that services revenue hit an all-time high quarterly at $19.8 billion, up 17.3% year-on-year, and constitutes one-fifth of Apple’s total sales.

Free cash flow for the first six months of fiscal 2022 held steady at $69.8 billion, and the company also declared a quarterly dividend of $0.23 per share, up 5% on a year.

Coca-Cola Co (NYSE: KO)

Coca-Cola is the largest soft drink company in the world, with its products sold in more than 200 countries.

The beverage giant continued to show steady growth, reporting a 17% year-on-year increase in revenue for fiscal 2021 (FY2021).

Net income climbed 26% year-on-year and Coca-Cola generated free cash flow of $11.3 billion.

The momentum continued in the first quarter of fiscal 2022, with revenue up 16% year-on-year to US$10.5 billion and net income up 24% year-on-year to US$2. .8 billion US dollars.

Global unit case volume also increased 8% year-over-year, reflecting the continued strength of the brand.

Coca-Cola is also well known for its long history of paying dividends. It recently raised its quarterly dividend to US$0.44 per share, its 60e consecutive increase in the annual dividend.

Kraft Heinz Co (NASDAQ: KHC)

Kraft Heinz is a food company that owns famous global brands such as Kraft, Heinz, Kool-Aid, Quero and Oscar Mayer.

The company reported a strong 1Q2022 earnings package, with organic net sales up 6.8% year-over-year.

Net income increased from US$563 million to US$776 million due to lower selling expenses and no impairments.

The company generated $300 million of free cash flow for 1Q2022.

Kraft Heinz continues to tap into its three strategic pillars – consumer platforms, restaurants and emerging markets – to grow revenue.

The company also works with Microsoft (NASDAQ: MSFT) to harness machine learning to innovate in its manufacturing, logistics, and research and development businesses.

Expectations for 2022 organic sales have been raised to a mid-single-digit percentage as Kraft Heinz expects strong performance for the full year.

Moody’s Corporation (NYSE: MCO)

Moody’s is a risk assessment firm that assesses risk using big data and analytical solutions. It employs 14,000 people in more than 40 countries.

The rating agency reported a 5% year-on-year drop in revenue to $1.5 billion, from a record the previous year.

Operating profit fell 23% year-on-year due to higher incurred operating expenses.

Net income fell 32.3% year-on-year to $498 million.

Three of its four divisions saw year-over-year revenue declines due to volatile market conditions, with only the structured finance division seeing a 24% year-over-year increase .

The Moody’s Analytics division has benefited from recurring revenue growth and high retention rates, providing the business with stability during periods of volatility.

Flooring and Decoration (NYSE: FND)

Floor & Décor is a specialist retailer of hard surface flooring, dealing with a variety of materials such as tile, wood, laminate and stone.

Founded in 2000, the company operates 166 warehouse-format stores and five design studios in 34 U.S. states as of March 31, 2022.

The company’s growth has been impressive over the past five years – total sales have grown from US$1.38 billion in 2017 to US$3.4 billion in 2021.

The number of warehouse stores increased from 83 to 160 over the same period.

Floor & Décor’s momentum continued in 1Q2022, with net sales up 31.5% YoY to US$1.03 billion and same store sales improving 14.3% YoY annual.

Nine new stores are planned for the second quarter, with a target to open a total of 32 new stores in 2022.

CEO Tom Taylor is confident the company can operate at least 500 stores in the United States, implying the company still has significant room for growth.

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Disclaimer: Royston Yang owns shares of Apple.

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