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Warren Buffett's Best Performing Stocks of 2016


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Warren Buffett is recognized as one of the greatest investors of all time, and many people follow his investments. Here's a look at his 15 best stocks of 2016 as of Nov. 18. Click through to see how you can invest like the Oracle of Omaha.

1. Goldman Sachs (GS)

Goldman Sachs is one of the most prominent players in the investment banking sector. It had a 26 percent positive earnings surprise for the third quarter of the year. The stock was up more than 21 percent in the 30 days ending Nov. 18, perhaps reflecting the strong quarter and its likely strong prospects under a Trump presidency.

The stock has gained 17.79 percent year-to-date. The stock ended 2015 at $180.23 per share and closed on Nov. 18 of this year at $210.35 per share.

2. Charter Communications (CHTR)

Charter provides cable TV and other entertainment services to residential customers in the U.S. The Street cited CNBC's David Faber as noting that Charter's subscriber number continues to grow in a tough environment. Charter CEO Tom Rutledge said Charter hooked up 1.3 million cords last year, as well as broadband and video, The Street reported.

The stock has gained 29.73 percent year-to-date, and it has delivered positive returns each year since 2010. The stock ended 2015 at $183.10 per share and closed on Nov. 18 of this year at $262.70 per share.

3. NOW (DNOW)

NOW was spun off from National Oilwell Varco and is now the second-largest distributor to the U.S. oil and gas market. Weakness in the price of oil hurt the stock's price in 2015, but Forbes has predicted a bright future for the company.

The stock has gained 25.79 percent year-to-date. The stock ended 2015 at $15.82 per share and closed on Nov. 18 of this year at $19.90 per share.

4. Restaurant Brands International (QSR)

Restaurant Brands International has about 19,000 quick-service restaurants in North America and overseas. Brands include Burger King and Tim Hortons.

The quick-service restaurant segment is highly competitive, and there are few barriers to entry for competitors. According to Zacks, Restaurant Brands International's revenue and earnings have beaten estimates. That might account for the stock’s strong performance this year.

The stock has gained 24.87 percent year-to-date. The stock ended 2015 at $37.36 per share and closed on Nov. 18 of this year at $46.20 per share.

5. Torchmark (TMK)

Torchmark is an insurance holding company. It focuses on individual life and supplemental health insurance to U.S. customers. It also markets some annuities. The stock's strong performance so far in 2016 can be attributed in part to delivering positive earnings surprises in a number of recent quarters.

The stock has gained 23.54 percent year-to-date. The stock ended 2015 at $57.16 per share and closed on Nov. 18 of this year at $70.06 per share

6. United Parcel Service Class B (UPS)

UPS is one of the world's leading package-delivery companies. Zacks reported UPS shares have beaten the broad transportation sector, and have beaten on both earnings and revenue estimates in the company's latest quarterly results. The company estimates a 14 percent growth in delivery packages this holiday season.

The stock has gained 21.80 percent year-to-date. The stock ended 2015 at $96.23 per share and closed on Nov. 18 of this year at $114.09 per share.

7. International Business Machines (IBM)

It looks like Buffett's "biggest investing mistake of 2015" is turning out to be one of his best stocks of 2016.

IBM operates through global technology services, global business services, software, systems hardware and global financing. Bank of America recently ranked the stock a buy on the strength of stabilized earnings and a solid 3.6 percent dividend yield.

The stock has gained 20.54 percent year-to-date. The stock ended 2015 at $137.62 per share and closed on Nov. 18 of this year at $160.39 per share.

9. M&T Bank (MTB)

M&T Bank is a bank holding company. The stock was up over 22 percent in the 30 days ending Nov. 18, perhaps reflecting the strong quarter and its likely strong prospects under a Donald Trump presidency.

The stock has gained 18.30 percent year-to-date. The stock ended 2015 at $121.18 per share and closed on Nov. 18 of this year at $141.26 per share

8. United Continental Holdings (UAL)

United Continental Holdings is the result of the merger between United Airlines and Continental Airlines. The company is one of the largest carriers in the world, with hubs in Chicago, Denver and elsewhere. According to Zacks, Buffett also owns shares in American Airlines, Delta Air Lines and Southwest Airlines. Zacks reported that part of Buffett's interest in the group arises from recent share buybacks by several airlines.

The stock has gained 19.18 percent year-to-date. The stock ended 2015 at $57.30 per share and closed on Nov. 18 of this year at $68.29 per share.

10. Lee Enterprises (LEE)

Lee publishes about 300 newspapers and other publications. It also offers digital products, such as video, digital couponing, social networking and more. Zacks classified Lee as one of its five moderately priced “breakout stocks.” It called Lee “a premier publisher of local news, information and advertising in primarily midsize markets."

The stock has gained 78.57 percent year-to-date. However, the stock’s performance has been volatile over the past few years, ranging from a more than 746 percent gain in 2009 to a more than a 71 percent loss in 2011. The stock ended 2015 at $1.68 per share and closed on Nov. 18 of this year at $3 per share.

11. US Bancorp (USB)

Zacks has singled out a share buyback program and an increase in the US Bancorp stock’s dividend as factors in the solid performance of the stock year-to-date. Zacks also cited solid growth in loans and deposits over the past several years.

The stock has gained 17.23 percent year-to-date. The stock ended 2015 at $42.67 per share and closed on Nov. 18 of this year at $49.23 per share.

12. Bank of New York Mellon (BK)

Bank of New York Mellon is one of the largest players in asset custody and servicing. The company's success should continue in tandem with increased regulation in the securities markets. Zacks has raised its full-year estimate for the company.

The stock has gained 16.84 percent year-to-date. The stock ended 2015 at $41.22 per share and closed on Nov. 18 of this year at $47.44 per share.

13. Kraft Heinz (KHC)

The company has a number of venerable consumer brands. Senior management has vowed to cut costs mostly via a reduction in its U.S. workforce and other changes. Zacks cited the cost savings and gains from innovations as key drivers in the company’s performance.

The stock has gained 15.83 percent year-to-date. The stock ended 2015 at $72.76 per share and closed on Nov. 18 of this year at $82.53 per share.

14. Johnson & Johnson (JNJ)

The company is leader across a wide variety of healthcare business segments, including medical devices, pharmaceuticals and over-the-counter medications. These products create sizable cash flow for the company. J&J is one of the oldest and most successful companies in its industry. The stock is off its highs for the year, but investors are hoping that a Trump victory —and his stated desire to repeal Obamacare — might bode well for this industry.

15. LSB Industries (LXU)

LSB manufactures and sells chemical products. Its focus is the agricultural, mining and industrial markets.

The stock has gained 16.55 percent year-to-date. The stock ended 2015 at $7.25 per share and closed on Nov. 18 of this year at $8.45 per share.

This list is based on the Sept. 30 Securities and Exchange Commission filing for his company, Berkshire Hathaway. The company is basically the vehicle by which Buffett makes investments.This report was prepared by the writer using Morningstar.

This article was originally published on GOBankingRates.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks , Investing Ideas


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