Friday, August 02, 2013

Invest Like Warren Buffett

Warren Buffett is arguably the most successful modern investor in the stock market and there’s good reason why.  He doesn’t invest on a whim or let the market trends dictate his investments.  Rather he uses a calculated approach.  He relies upon strategies that include value investing, which is the process of looking for stocks that are trading for less than their intrinsic values as well as paying high yielding dividends.  Buffett has also coined the phrase economic moat, which is a description of the company’s competitive advantage.  Here are some long term stocks to consider that have certainly gotten Buffett’s attention in the past.

Nike, (NKE) is a leader in apparel, sporting goods, and just about anything else dealing with athletics.  The company is number one in just about every market which leads to high profit margins.
Nike shares are trading at just under $67 per share, up from a 52 week low of $44.82 and there’s no indication that upward momentum will stop anytime soon.

ConocoPhillips (COP) is an integrated energy company that participates in all parts of the oil and gas industry, from drilling to refining to end sales of refined products. 
Like Nike, ConocoPhillips is currently trading just under $67 per share and appears to only be headed higher.  Current dividends are $2.76.

Costco (COST) members pay an annual fee to Costco for the right to shop at their stores, and most will tell you that they can save more money than the membership cost in a single visit.  Costco sells mostly grocery items, produce and consumer goods, but you can find just about anything in a Costco warehouse, including clothes, electronics, seasonal goods, jewelry and home improvement items.
Costco stock is currently trading around $119 per share with a dividend rate of $1.24.

The Coca-Cola (KO) company is by far the most successful soft drink maker in the world and the company continues to grow around the world, following a unique strategy of selling mainly syrup and concentrate to bottlers and restaurants, which then formulate the finished products that you see in grocery stores and restaurants.

Coca-Cola stock is currently trading around $40 per share with a dividend rate of $1.12

Procter & Gamble (PG) is a consumer products Goliath, with brands like Tide, Bounty, Pampers, Head & Shoulders, Gillette, Olay, Crest, Oral-B, Dawn, Downy and Duracell. P&G's strategy is to only compete in markets where it has a No.1 or No.2 market share, and get rid of products when it can't obtain that leadership position.

Procter & Gamble stock is currently trading around $81 per share and they have a dividend rate of $2.406

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