What stocks does Warren Buffett own in 2021? AtoZMarkets talks about interesting assets in the portfolio of the legendary investor.
August 30, 2021, | AtoZ Markets – In the second quarter of 2021, large investors are betting on defensive stocks. Warren Buffett and other experienced exchange traders are preparing for the fall of the market, trying to preserve their capital invested at the onset of the global crisis.
An investor who wants to protect his deposit from sharp price surges should take a closer look at the strategy of professional investors.
Today we will focus on the tactics of one of the most popular market players – Warren Buffett. He made millions of dollars on the financial markets and is now considered a true professional in his field.
What stocks does Warren Buffett own in 2021?
Recently, information about Warren Buffett portfolio 2021 was leaked to the media. Reporters revealed data on trade transactions for the second quarter of 2021. It turned out that the famous investor is showing great interest in the protective sectors of the world market.
According to AtoZMarkets research, he prefers to invest his capital in businesses related to FMCG (Fast Moving Consumer Goods) and food products.
Among the fund’s largest acquisitions are shares in the Kroger supermarket. The managers bought 10.7 million securities for a total value of more than $2 billion. Professional analysts say that a price correction is likely to occur in the near future. Over the past year, key US indices have shown unreasonably fast growth. Many indexes are overbought, including the S&P 500, which is up 100% since March 2020.
Most likely, the Fed will begin to abandon monetary incentive programs, according to some traders. Perhaps the federal system will cut charges in order to lower current spending. Predicting the occurrence of corrective movements, world market participants make a completely logical decision – to rebalance the portfolio in favor of protective instruments. In the future, prices for stable securities and commodities are expected to rise, and therefore investors will be able to make good money on the market hype.
The most interesting Warren Buffett stock portfolio in 2021
At the end of the second quarter of 2021, the investment portfolio of the legendary investor remained practically unchanged. Most of it is still occupied by such giants as Coca-Cola, Apple, American Express, and others. In addition to well-known brands, we managed to find how many young and promising companies that professional investors also found interesting.
Below we present the five companies that have earned their place in the investment portfolio of Warren Buffett:
- Snowflake – the company entered the market only in 2020. It quickly gained popularity, and after a few months of active work, it took a leading position in the field of cloud storage of information. The company is currently integrated with three international platforms, including Amazon, Microsoft, and Google cloud. It develops partnerships with other services, offering cloud storage services to its customers.
- Organon is a US medical company. She has developed over 60 effective drugs. The firm works in the field of reproductive medicine, contraception, hormone replacement therapy, psychiatry, anesthesia. The organization appeared in July of this year, whereas before that it was only part of the Merck corporation. To date, the capitalization is more than $8.4 billion.
- StoneCo is a financial and technological project that started in Brazil. The IPO was carried out in 2018, so the brand has been on the market for about 2-3 years. It provides innovative cloud e-payment solutions. The firm holds more than 10% of the Brazilian cashless payments market. Warren Buffett invested a huge amount in the development of this project, after which the securities rose in price by almost 300%.
- Tyson Food is a large food company that supplies frozen beef, pork, chicken, and convenience foods. The company sells products to catering chains, government, and educational institutions. Such products will always be in demand, and therefore the company can be considered reliable.
- Walmart is an international supermarket chain selling essential goods. Here you can buy food, pet food, skincare products, household chemicals, and much more. The company owns a chain of gas stations and several clothing stores. Walmart will benefit from investors’ shift to buying defensive assets.
Paying attention to Warren Buffett portfolio 2021 list, novice market player can create their own investment strategy.
When selecting securities for an investment portfolio, you should rely on your own financial capabilities and goals. If an investor wants to protect the invested capital from unpredictable losses, then it will be useful for him to focus on stable instruments. Protective assets will allow avoiding large losses, they will provide growth during the economic crisis.
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