Zacks Value Trader Highlights: Apple, Costco, Mastercard, Amazon and RH

For Immediate Release

Chicago, IL – July 24, 2020 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:

Surprise! Warren Buffett Actually Own Some of The Street's Hottest Stocks

Welcome to Episode #198 of the Value Investor Podcast.

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

As the NASDAQ, and tech stocks, make yet another new all-time high, it gets more difficult to remain a value investor.

Ever since the coronavirus sell-off, value investors, and Warren Buffett, in particular, have been subjected to a higher amount of trash talk from growth investors.

It culminated in day trader, and founder of Barstool Sports, Dave Portnoy, calling Buffett “past his prime” and mocking his sale of the airline stocks for a loss as the coronavirus pandemic hit the global economy. He thought Buffett sold the airline stocks too early.

But Buffett is usually just the punching bag for the entire value sector.

Is Buffett Out of Touch?

Buffett, and Berkshire Hathaway, have been mocked for having too much cash in its portfolio, for not buying more tech, for being too heavily invested in the big banks and financials, which are out of favor and underperforming.

In 1999, Buffett was called out for being out of touch with the dot-com mania and now, 21 years later, he is again being hit with the same criticism.

Yet if you dig into Berkshire Hathaway’s portfolio, you’ll find that it actually owns several of 2020’s hot stocks.

Apple, Apple, Apple

No one gives Buffett credit for Apple Inc. AAPL.

Apple is now Berkshire’s largest single holding, at 36% of the portfolio. Berkshire first bought it in the first quarter of 2016. Warren Buffett has talked about his love of the management and cash flow many times over the last 4 years.

Apple shares are up 102% over the last 2 years and are hitting new highs.

His critics also look past some of his excellent long-term investments like Costco Wholesale Corporation COST, which is also hitting new highs as an essential business during the COVID pandemic.

Berkshire first bought it in 2001. Shares are up 49% over the past 2 years.

Additionally, Berkshire has been all-in on the credit card companies for many years.

Mastercard Incorporated MA has been a great investment. Shares were first bought in the first quarter of 2011. Over the last two years they’re up 50.4% compared to just 16% for the S&P 500.

Berkshire Owns Two FAANG Stocks

And Berkshire doesn’t own just one FAANG stock, it owns two.

Did you know that Berkshire owns, Inc. AMZN shares? It only entered into this position in the first quarter of 2019. Shares of Amazon are hitting new highs in 2020.

But one of its best recent investments was in luxury furniture retailer RH RH.

It jumped into those shares in the third quarter of 2019. Shares are up 33% year-to-date and are hitting new highs.

What else should you know about Berkshire Hathaway’s portfolio and investing strategy?

Listen to this week’s podcast to find out.

[In full disclosure, the author of this article owns shares of RH and AMZN in her personal portfolio.]

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

See their latest picks free >>


Media Contact

Zacks Investment Research

800-767-3771 ext. 9339


Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Costco Wholesale Corporation (COST): Free Stock Analysis Report
Mastercard Incorporated (MA): Free Stock Analysis Report
RH (RH): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

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


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.