With the stock markets flying high and valuations going through the roof, it’s more important than ever for investors to focus on stocks that offer good value while still having plenty of growth potential left. And when it comes to picking good stocks to hold for the long term, there are no better footsteps to follow in than Warren Buffett’s.
Below are three stocks that are currently held by Buffett’s Berkshire Hathaway that look to be good buys heading into December.
Visa (NYSE:V) is an example of a stock that will always be a great long-term buy. Recession or not, consumers will continue using their credit cards for purchases, making Visa a relatively stable investment.
In its most recent earnings report, the company continued to see growth as it processed $47.8 billion transactions, which was up 13% from the prior year. Net revenue of $6.14 billion was also up by a comparable amount and its per-share earnings of $1.47 soundly beat estimates of $1.43.
With another busy holiday season coming in December, Visa’s network is likely to get active again. Even if retailers struggle, there’s a good chance online shopping will pick up the slack. Either way, Visa could benefit from a rise in consumer spending, which continues to be strong as September and August both showed modest growth of 0.2%.
Visa’s stock is a bit pricey, as it trades at more than 30 times earnings and 13 times book value, which are multiples that are rich for price-conscious investors. But given the… Continue reading at The Motley Fool