This article provides information only and should not be construed as advice. Here are 2 powerful tailwinds to take advantage of today ‘There’s always a bull market somewhere’: Jim Cramer’s famous words suggest you can make money no matter what. If your retirement plans have been thrown off by inflation, here's a stress-free way to get back on track Sign up for our MoneyWise investing newsletter to receive a steady flow of actionable ideas from Wall Street's top firms. Paying quarterly dividends of $1.42 per share, Chevron has an annual yield of 3.6%. The company returns cash to investors, too. Chevron’s latest quarterly earnings more than tripled year over year. And the supply shock caused by Russia’s invasion of Ukraine could keep that trend going. Oil - the most heavily traded commodity globally - has soared 23% year to date. Even though the oil business is capital intensive, it tends to do very well during periods of high inflation. Today, Chevron represents the fourth-largest public holding at Berkshire. 31 - a significant jump from its stake of $4.5 billion at the end of 2021. According to an SEC filing, Berkshire owned $25.9 billion of the energy giant as of Mar. One of Buffett’s big moves in 2022 is loading up on Chevron. Over the past five years, shares of the tech gorilla have surged more than 300%.Īpple currently offers a dividend yield of 0.5%. Of course, the sheer increase in Apple’s stock price is one of the reasons for that concentration. Today, Apple is Buffett’s largest publicly traded holding, representing more than 40% of Berkshire’s portfolio by market value. That means, as inflation spikes, Apple can pass higher costs to its global consumer base without worrying too much about a drop in sales volume. While competitors offer cheaper devices, many consumers don’t want to live outside the Apple ecosystem. But consumers love splurging on Apple products anyway.Įarlier last year, management revealed that the company’s active installed base of hardware has surpassed 1.65 billion devices, including over 1 billion iPhones. No one who spends $1,600 for a fully decked-out iPhone 13 Pro Max would call it a steal. You can lock in a dividend yield of 2.8% on Coca-Cola's shares at current prices. Today, Berkshire owns 400 million shares of the company, worth approximately $25.4 billion. After all, the company went public more than 100 years ago.īuffett has held Coca-Cola in his portfolio since the late ’80s. The company’s entrenched market position, massive scale, and portfolio of iconic brands - including names like Sprite, Fresca, Dasani and Smartwater - give it plenty of pricing power.Īdd solid geographic diversification - its products are sold in more than 200 countries and territories around the globe - and it’s clear that Coca-Cola can thrive through thick and thin. Whether the economy is booming or struggling, a can of Coke is affordable to most people. Coca-Cola (KO)Ĭoca-Cola is a classic example of a recession-resistant business. Owning 151.6 million shares of AXP, Berkshire’s stake is worth nearly $25 billion.īerkshire also owns shares of American Express competitors Visa and Mastercard, although the positions are much smaller.Īmerican Express shares currently offer a dividend yield of 1.3%. In Q2, the company’s revenue jumped 31% year over year to $13.4 billion.Īmerican Express is the fifth-largest holding at Berkshire Hathaway. As the price of goods and services increases, the company gets to take a cut of larger bills.īusiness is booming. The company also stands to directly benefit in an inflationary environment.Īmerican Express makes most of its money through discount fees - merchants are charged a percentage of every Amex card transaction. Last year, American Express demonstrated its pricing power as it raised the annual fee on its Platinum Card from $550 to $695. Warren Buffett likes these 2 investment opportunities outside of the stock market You could be the landlord of Walmart, Whole Foods and Kroger (and collect fat grocery store-anchored income on a quarterly basis) Mitt Romney says a billionaire tax will trigger demand for these two physical assets - get in now before the super-rich swarm Here are four Berkshire holdings that largely boast those characteristics. In a 1981 letter to shareholders, Buffett highlighted two business traits that investors should look for when trying to fight inflation: 1) the power to increase prices easily, and 2) the ability to take on more business without having to spend excessively. Spiking inflation has severe consequences for your cash savings.įortunately, investing legend Warren Buffett has plenty of advice on what to own when consumer prices spike. consumer prices surged 8.5% from a year ago - down from 9.1% in June but still near a multi-decade high.
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