3 Warren Buffett Stocks to Snap Up With $3,000 Before the Next Market Surge
Wall Street's oracle still holds the playbook—here's how to ride his coattails without the Berkshire price tag.
The $3,000 Bargain Hunt
Forget meme stocks and crypto hype trains. Buffett's picks crush markets by sticking to one rule: buy bulletproof businesses at fair prices. These three tickers pass the test.
Stealth Growth Hiding in Plain Sight
One unsung hero in Berkshire's portfolio quietly doubled free cash flow since 2020—while trading at a 15% discount to sector peers. The Street's sleeping on this cash machine.
The 'Boring' Monopoly Printing Money
No AI buzzwords here. Just a century-old infrastructure play with 90% market share and regulatory moats even Congress can't breach. Dividends? Like clockwork.
Buffett's Contrarian Bet on Retail's Future
While hedge funds short malls into oblivion, Berkshire loaded up on this e-commerce hybrid. Physical footprints now fuel its digital dominance—Amazon can't replicate this model.
Closing Thought: In a market paying 50x earnings for chatbots, Buffett's 'dinosaur' stocks keep minting millionaires. The old man knows something your finfluencer doesn't.
Image source: Getty Images.
1. Coca-Cola
Coca-Cola first started selling soda in 1886. It has survived by adapting to consumer tastes. It now sells other beverages, such as water, juice, and plant-based beverages, in more than 200 countries.
Dividends remain one of the main attractions for investors. Earlier this year, the board of directors raised the quarterly payout by more than 5% to $0.51. The company has now increased payments for 63 straight years, making it a Dividend King.
Shareholders will earn a nice dividend yield. The stock's 3% yield easily bests theindex's 1.2%.
Those looking for breakneck growth should search elsewhere since Coca-Cola is a mature company. That's reflected in management's long-term goals, which include 4% to 6% revenue growth and a 7% to 9% increase in operating income, both adjusted for certain items like removing foreign currency translation effects.
Coca-Cola has been meeting these goals. Second-quarter revenue increased 5%, driving a 15% operating income rise.
The combination of solid earnings growth and higher dividends makes Coca-Cola's stock an attractive investment based on its total return potential.
2. Domino's Pizza
Domino's Pizza has grown into the world's largest pizza chain with more than 21,500 locations. It franchises about 99% of its locations. This low-cost model allows Domino's to collect royalty fees based on a percentage of the franchisee's sales.
Since opening its first restaurant in 1960, Domino's Pizza continues to resonate with customers based on its affordable prices and convenient locations offering pick-up and delivery options. Management's MORE strategy aims to produce more sales, more profits, and more stores in a smart way. This includes focusing on providing delicious food, and offering customers convenience, consistency, efficiency, and competitive prices.
The simple yet effective concept continues to resonate with customers. You can see this by looking at Domino's consistent sales growth.
Positive same-store sales (comps) continued in the second quarter. U.S. comps increased 3.4%, and international comps gained 2.4%. Importantly, Domino's didn't rely on price increases to drive COMP increases. The higher U.S. comps were due to higher traffic and increased spending. Management credited higher traffic largely for the international comps' growth.
The company still has room for growth. That's because, with this success, Domino's continues expanding. It added 178 locations during the quarter (30 domestic and 148 international).
The company also pays a reliable dividend. While the company hasn't built the same track record of dividend increases as Coca-Cola, it has raised them for a number of years. This includes a 15.2% hike earlier this year. Shareholders will receive a 1.5% dividend yield, slightly above the S&P 500.