Warren Buffett has guided Berkshire Hathaway to market-crushing returns through good times and bad, and the Oracle of Omaha’s investment conglomerate has now posted a total return of roughly 3.5% year to date. That might not sound like much, but it’s pretty darn impressive considering that the S&P 500 index’s return level is down 15% in 2022.
With a tip of the hat to Buffett’s impressive market-beating mojo, a panel of Motley Fool investors has identified a trio of great stocks in the Berkshire portfolio that have what it takes to deliver fantastic performance. Read on to see why they identified Amazon (AMZN 5.73%), Kroger (KR -1.53%), and Apple (AAPL 3.19%) as stocks that can help you crush the market over the long term.
An incredible company at a great price
Keith Noonan (Amazon): The market has fallen out of love with Amazon. Some of this is due to investors fleeing growth stocks in search of safer options amid risk factors including rising interest rates, high inflation, and other sources of macroeconomic uncertainty.
With the tech-heavy Nasdaq Composite index down roughly 25% this year alone, there’s definitely a broader shift at play, and it’s not shocking to see Amazon stock impacted by the trend. There have also been some individual, company-specific catalysts driving sell-offs, and Amazon shares are now down roughly 43% from the high they hit last year.
Following surging demand created by pandemic-related conditions, Amazon’s e-commerce business is now growing at a much slower clip. Making matters worse, the company is also seeing segment expenses increase due to elevated shipping costs and other inflationary pressures. Those factors alone might have been enough to put some investors off of the stock, but Amazon is also in the midst of a massive spending push to expand its infrastructure and improve its technology resources.
In short, there’s a perfect storm of catalysts leading to big losses at the e-commerce business right now,…
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