It’s completely understandable why many investors could be reluctant to buy stocks right now. Inflation remains high. We could already be in a recession. There’s admittedly a lot of uncertainty.
However, Warren Buffett isn’t letting any of this get in his way. He has done quite a bit of buying this year for Berkshire Hathaway‘s (BRK.A -0.29%) (BRK.B -0.69%) portfolio. There’s no need to try to imitate everything that the legendary investor is doing. But here are three Buffett stocks to buy in August without any hesitation.
Sure, the first half of 2022 wasn’t a great one for Amazon (AMZN 2.19%). The company faced supply chain challenges and overcapacity. Its share price sank. However, Amazon began a solid comeback in July.
Amazon benefited from a streak of good news. Its recent Prime Day posted record sales. Investors applauded the company’s planned acquisition of primary care provider One Medical. Amazon delivered surprisingly strong second-quarter results.
These positive developments haven’t prompted Buffett to scoop up more shares of Amazon (as far as we know). However, the underlying factors behind them should make investors quite comfortable buying this stock.
The banner Prime Day event showed that Amazon’s e-commerce business is alive and kicking. The OneMedical deal underscores Amazon’s growth prospects in new markets. The great Q2 results were made possible by the continued momentum for Amazon Web Services. With all of this going for it, Amazon seems poised to remain a big winner for long-term investors.
At first glance, you might question just how strong Apple’s recent quarterly results were. The company reported year-over-year revenue growth of only around 2%. Keep in mind, though, that this improvement was achieved despite currency headwinds, supply chain issues, and skyrocketing inflation affecting consumers.
Apple’s success depends largely on its iPhone ecosystem. The latest survey showed an astounding 98% customer satisfaction rate with the iPhone. There were also more switches from other phones to the iPhone in the June quarter than ever before. This bodes well for Apple’s future prospects.
5G should continue to drive higher demand for newer iPhones. So should future innovations from Apple, including a rumored foldable iPhone and new augmented reality capabilities.
Buffett has been a longtime fan of insurers. Berkshire’s own insurance businesses include GEICO and General Re. The only thing surprising about Berkshire’s purchase of specialty insurer Markel (MKL -2.73%) earlier this year is that it hasn’t happened earlier.
But Markel isn’t just an insurance company. Like Berkshire, it also invests in other companies. Markel Ventures includes an assortment of businesses. Markel also owns stakes in dozens of publicly traded companies, including Amazon, Apple, and Berkshire Hathaway (its largest holding).
Unlike most of Buffett’s stocks, Markel has risen year to date. It’s also in a good position to thrive even with high inflation because it can pass higher costs along to customers.
Markel arguably ranks among the best stocks that Buffett owns right now. The company has solid growth prospects. It provides a level of diversification with its external investments in multiple other businesses. The stock is also attractively valued, with a price-to-earnings-growth (PEG) ratio of only 0.9.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Speights has positions in Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Markel. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.