Warren Buffet has made his name by betting on fundamentally-sound “value” stocks with immense long-term growth potential. He advocates holding stocks for a prolonged period rather than trading on short-term fluctuations. His popular holdings Apple (AAPL), Goldman Sachs (GS), DaVita (NYSE:DVA), and Axalta Coating (AXTA) helped Berkshire Hathaway (NYSE:BRKa) “break” the maximum price set on Nasdaq exchange’s computers earlier this month. So, how can we not take a closer look?.The world’s most admired investor, Warren Buffet, made headlines as the price of class A shares of his holding company Berkshire Hathaway (BRK.A) crossed the algorithmic limit of $424,840 on May 5. BRK.A continued to rally to hit its $445,000 all-time high on May 7, making it the most expensive stock to date. BRK.A has gained 25.2% year-to-date, surpassing the broader S&P 500 index’s 10.8% returns over this period.
With a net worth of $109.90 billion, Buffett is one of the most successful investors of all time and is known for his fundamental value investing strategy. He preaches a long-term investing strategy in which investors should commit to holding a stock for extended periods, despite “investment noise” that may cause short-term fluctuations.
With rising inflation and the Treasury yields, the stock markets look less attractive now. The “Buffett indicator,” which is the Wilshire 5000 index to GDP, grew more than 25% from its all-time high in 2000 (during the dot-com bubble) in March this year. Despite the broader market overvaluation, Buffett is betting on several stocks from multiple industries that possess significant upside potential, backed by sound financials and industry tailwinds. Thus, we think Warren Buffett’s all-time favorite stocks—Apple Inc. (NASDAQ:AAPL), The Goldman Sachs Group , Inc. (NYSE:GS), DaVita Inc . (DVA) and Axalta Coating Systems Ltd . (NYSE:AXTA) — could be solid bets now.