Successful conventional or online stock trading depends a lot on looking at what celebrated investors have purchased. One way to ensure you buy stocks with higher earning potential is to get those stocks which successful investors have invested in.
What better choice of investor to follow than the Sage of Omaha himself, Warren Buffett. The best way to do this is go through his list of holdings and buy those which are trading presently for attractive prices, making it easier for you to buy them. Here are two stocks owned by Buffett which experts believe are worth checking out.
Phillips 66 (PSX) is one such stock that Buffett has invested in significantly. The drop in prices of crude oil has only benefited refinery companies in the energy sector, since most energy stocks were plunging in 2015. Phillips 66, however, witnessed record highs in the latter part of 2015. In spite of the energy-price volatility, the market conditions for refined products have been largely favorable. This has contributed to the company reporting strong profits. Since the refinery industry has massive barriers to entry, companies including Phillips 66 provide greater pricing power to the whole sector. Phillips 66 has a dividend yield of over 3% with greater potential for growth.
IBM (IBM) is another Buffett stock that is worth considering. According to regulatory filings, Buffett purchased more IBM stock in 2016 Q1. In fact he first bought IBM shares in 2011, keeping on adding to them ever since. It’s worth noting that the company is moving away from areas such as hardware that were underperforming. Fluctuations in foreign currency, however, have exerted downward pressure on the company’s international sales which made IBM declare a 5% decline in revenue during Q1 of 2016. But IBM is now investing aggressively in other businesses such as mobile technologies, cloud storage, security, analytics, etc, and performance in these areas has been quite encouraging.
These strategic imperatives have provided IBM with improved currency sales, by 17% in the last quarter, accounting for 37% of the company’s total revenue annually. Such growth opportunities are sure to raise the financial performance of the company. IBM’s stock is trading at quite a cheap price-to-earnings ration currently.
It is worth checking out these stocks if you wish to make some winning moves. TradeZero offers online stock trading opportunity for beginners and seasoned traders. Contact us at +1 954-944-3885 or email us at email@example.com.
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