The world's greatest investor owns shares in these elite businesses. Perhaps you should, too.
From 1965 to 2017, Berkshire Hathaway's (NYSE:BRK-A) (NYSE:BRK-B) stock grew by a compounded annual rate of 20.9%. That's enough to turn $1,000 into more than $23 million.
Berkshire's incredible success is due in part to Warren Buffett's ability to identify undervalued stocks. Berkshire's chairman and CEO is arguably the best investor of all time, and he's helped the company he built amass a publicly traded stock portfolio that's currently valued at more than $200 billion.
Two of Buffett's investments are particularly attractive today.
1. The tech giant
Buffett's largest position may also be the most intriguing opportunity at current prices. Berkshire Hathaway owns more than 250 million shares of Apple (NASDAQ:AAPL), currently valued at approximately $45 billion. And Buffett has said he'd like to buy even more.
Buffett may get his chance. Apple's shares have pulled back in recent weeks along with the overall market. Fears surrounding trade wars, the impact of potential tariffs, and peaking iPhone sales have all weighed on the stock.
Yet I'd argue that many of these fears are already priced into Apple's shares. With its price now down more than 20% from its highs, Apple's stock is trading at less than 12 times forward earnings estimates, compared with nearly 17 for the S&P 500. That's quite a bargain for an elite business that's projected to grow its EPS by 13% annually over the next half-decade. In fact, I wouldn't be surprised if Buffett is increasing Berkshire's stake in Apple during this latest sell-off.
Buying a great business at a bargain price is a great way to build wealth in the stock market. And should Wall Street's fears prove unfounded, investors who buy today could enjoy even larger gains. President Trump recently announced a 90-day delay in retaliatory tariffs while the U.S and China work toward a new trade deal. And while iPhone unit sales may be slowing, higher average selling prices helped drive a 29% surge in iPhone revenue in the fourth quarter. As such, the bears are probably overestimating the long-term impact of these issues and it's creating an opportunity for investors to buy shares in Apple at a terrific price today.
click link for original report: https://www.fool.com/investing/2018/12/05/2-warren-buffett-stocks-to-buy-in-december.aspx