Warren Buffett is one of the world’s most successful investors, with a portfolio of assets that span the globe. He is known for his long-term investment strategy, which has made him billions of dollars over the years. Every year, Buffett’s Berkshire Hathaway releases a list of the stocks that it has bought and sold during the previous year. It’s always interesting to see what investments the legendary investor has made, as it can provide valuable insight into his investment philosophy. In this article, we will take a look at the stocks that Warren Buffett bought recently and explain why these investments could be a good bet for the future.
Warren Buffett’s Investment Strategy
Before we dive into the stocks that Warren Buffett recently bought, it’s important to understand his investment approach. Warren Buffett believes that long-term investing is the key to success. He looks for companies that have a sustainable competitive advantage and solid management teams. He also looks for companies with strong balance sheets and healthy cash flows. Finally, he likes companies that are trading at bargain prices and can provide him with a margin of safety. This approach has served him well over the years, and has made him one of the world’s richest people.
What Stocks Did Warren Buffett Just Buy?
In the third quarter of 2022, Warren Buffett made several new investments. A few of the investments we like the most with the most upside are Nu Holdings, Occidental Petroleum, T-Mobile, Activision Blizzard, McKesson, Amazon, Kroger, Visa, Chevron, and VeriSign.
Nu Holdings
Nu Holdings $NU stock has recently done a confirmed break above its 200 day moving average. The stock has a technical uptrend rating.
Occidental Petroleum
Occidental Petroleum $OXY stock has recently broken below its 200 day moving average and the MACDThe MACD indicator is essentially a momentum indicator that shows the relationship between two different moving averages of price. The MACD is the difference between the 12-period ... has gone negative as selling hits the stock. The stock has a technical strong downtrend rating.
T-Mobile
T-Mobile $TMUS stock is testing its 50 day moving average and trades in an uptrend channelUptrend and downtrend channel patterns are technical analysis tools used to identify potential future price movements. They are formed by two parallel lines on a chart and can be u.... The stock has a technical strong uptrend rating.
Activision Blizzard
Activision Blizzard $ATVI stock is having trouble holding above its 200 day moving average and is still in a long-term downtrend channelUptrend and downtrend channel patterns are technical analysis tools used to identify potential future price movements. They are formed by two parallel lines on a chart and can be u... pattern. The stock has a technical weak downtrend rating.
McKesson
McKesson $MCK stock is breaking to the downside, hardcore. The MACD and money flow have both gone negative as short-sellers target the stock. The stock has a technical weak uptrend rating but that looks certain to be downgraded soon. Extreme caution is warranted!
Amazon
Amazon $AMZN stock is trading in an uptrend channel and is making a move on its 200 day moving average. A break above would be bullish. The stock has a technical weak downtrend rating.
Kroger
Kroger $KR stock dumped back in December 2022, after profit takers sold on the Buffett hype. Both the 50 day and 200 day moving averages are falling. The stock has a technical strong downtrend rating.
Visa
Visa $V stock confirmed a Resurrection CrossWhen the 50 day moving average crosses above the 200 day moving average, it is called a Resurrection Cross. Conversely, when the 50 day moving average crosses below the 200 day mov... back in December 2022 and hasn’t looked back since. The stock is trading in a bullish uptrend channel. The stock has a technical strong uptrend rating. The stock has also formed an Inverted Head and Shoulders bottomThe inverse head and shoulders pattern is a chart pattern that traders look for when trying to identify potential reversals in the trend of a security. It consists of three troughs... pattern which is bullish!
Chevron
Chevron $CVX stock is selling off hardcore. The MACD is negative and the money flow is poised to break negative. The stock has a technical uptrend rating but that could be downgraded soon. Caution is warranted.
Verisign
Verisign $VRSN stock confirmed a Resurrection Cross back in December 2022 and has traded in a bullish uptrend channel since. The stock has a technical strong uptrend rating.
It is usually a bad idea to buy a stock on the news that Warren Buffett bought it, immediately after that information goes public via SEC filings. The reason is that the stocks Buffett buys often do pump and dump chart patterns as existing investors profit-take into the Buffett move higher. Only after 3 to 4 months is it usually safe to consider buying Buffett stocks. Timing is everything! Keep in mind that this is just a general timing rule. Some stocks go into strong uptrends after Buffett buys them and they never look back so waiting 3 to 4 months to enter means you are always arriving to the party late and missing out on big profits!
Why Did Warren Buffett Buy These Stocks?
Warren Buffett’s investment decisions are based on a variety of factors. He is known for investing in companies that have competitive advantages and good management teams. He also looks for stocks that are trading at bargain prices, which provides him with a margin of safety. Finally, he looks for companies that generate healthy cash flows, which can provide investors with a steady stream of incomeThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th....
What Does This Mean For Investors?
Warren Buffett’s investment decisions can be a great source of inspiration for investors. By studying the stocks that he has recently bought, investors can gain valuable insight into his investment philosophy and strategies. This can help investors to identify stocks that are undervalued and have the potential to provide them with long-term returns. Of course, it’s important to remember that past performance is not a guarantee of future returns.
Final Thoughts
Warren Buffett is one of the world’s most successful investors, and his recent investments can provide insight into his investment approach. In the third quarter of 2022, Buffett made several investments in consumer cyclical stocks, technology, communications, and energy. He looks for companies with a competitive advantage, good management teams, healthy cash flows, and bargain prices. His investment decisions can be a great source of inspiration for investors looking to identify undervalued stocks with the potential to generate long-term returns but watch out for pump and dump chart patterns when the stocks Buffett buys (or sells) are first made public!
Frequently Asked Questions
Q: What is Warren Buffett’s investment strategy?
A: Warren Buffett believes that long-term investing is the key to success. He looks for companies that have a sustainable competitive advantage and solid management teams. He also looks for companies with strong balance sheets and healthy cash flows. Finally, he likes companies that are trading at bargain prices and can provide him with a margin of safety.
Q: What stocks did Warren Buffett just buy?
A: In the third quarter of 2022, Warren Buffett made several new investments. These included but are limited to: Nu Holdings, Occidental Petroleum, T-Mobile, Activision Blizzard, McKesson, Amazon, Kroger, Visa, Chevron, and VeriSign.
Q: Why did Warren Buffett buy these stocks?
A: Warren Buffett’s investment decisions are based on a variety of factors. He is known for investing in companies that have competitive advantages and good management teams. He also looks for stocks that are trading at bargain prices, which provides him with a margin of safety. Finally, he looks for companies that generate healthy cash flows, which can provide investors with a steady stream of income.
Q: What does this mean for investors?
A: Warren Buffett’s investment decisions can be a great source of inspiration for investors. By studying the stocks that he has recently bought, investors can gain valuable insight into his investment philosophy and strategies. This can help investors to identify stocks that are undervalued and have the potential to provide them with long-term returns. Of course, it’s important to remember that past performance is not a guarantee of future returns.
