It's April Fools' Day. If Warren Buffett wants to pull the trigger for years, he might announce that he added $ 10 billion to several Berkshire Hathaway's cryptocurrency meme (BRK.A 0.42%) (BRK.B 0.32%) portfolio.
I'm not sure many people would not believe this joke. Buffett has strongly opposed cryptocurrencies in the past. Instead, he has always strongly believed in the value of investing in a business that manufactures products and services that people want to buy.
There are few stocks of such businesses in the current Berkshire portfolio with strong growth prospects. Here are three Buffett stocks you can buy in April.
1. Amazon.com
Some people are surprised and wonder if it is better to buy Amazon.com (AMZN -0.24%) before or after the next stock split. I suspect Buffett would say he forgot about separation and focused on the company’s core business.
Amazon remains a major player in commerce. There is still great potential for company growth, as US e-commerce sales account for only 13.2% of total retail sales in the fourth quarter of 2021.
However, Amazon Web Services (AWS) cloud hosting unit stands as an even bigger growth driver. Total unit sales increased by almost 40% annually in Q4. And AWS has generated more profits than all other Amazon businesses combined.
Buffett may also tell investors to look to the future. Amazon is ready for the growth of artificial intelligence (AI), health care, self-driving cars, broadcast, and more. This internet giant should continue to produce strong cash flows - and that should lead to long-term market performance.
2. AbbVie
Admittedly, AbbVie (ABBV -0.27%) does not match Buffett's favorite stocks. Berkshire's share in the major drug manufacturer reached $ 410 million by the end of 2021. However, Buffett has reduced his position at AbbVie slightly.
Buffett's move with AbbVie looks like a mistake when you look back. Stocks have launched the S&P 500 so far this year with a profit of more than 20%. Its full return is more than that of Berkshire Hathaway again.
I suspect that many investors are attracted to AbbVie's attractive ratings and profits during a time of total uncertainty. The shares of a major pharmaceutical company traded only 11.5 times the expected revenue despite high profits in recent months. AbbVie paid dividend King for the last term allocation and annual yield of 3.4%.
Don’t waste company growth prospects, either. AbbVie is facing a loss of US divisions over its best-selling drug Humira next year. However, the company has many other growth drivers on its list that should enable it to return to rapid growth.
Buffett has been a fan of bank stocks for years. Although he has reduced Berkshire's position in several banks, there is one bank that he has not sold: Bank of America (BAC -0.36%).
My view is that Bank of America is the best stock we can have in the short term. Why? The Federal Reserve plans to raise interest rates. Bank of America benefits from a growing area of interest. The company's total revenue and return on equity often improve as interest rates rise.
Buffett is likely to continue to view the Bank of America as a strong long-term investment. The company is financially strong. Its reputation stands at the top of the industry. The Bank of America has also improved its efficiency by investing in technology.
Could the American Bank business model be disrupted at some point? It is possible. However, the company has positioned itself well with its Zelle digital payment system and other online applications. The Bank of America has shown that it can survive and thrive in a changing financial and technological environment.
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Courtesy Grizler.com
