V - 3 Warren Buffett Stocks to Buy Hand Over Fist in December
2023-12-09 06:45:00 ET
Following along with Warren Buffett and what his team at Berkshire Hathaway trade in has been a fairly strong investment strategy, as the holding company's track record speaks for itself. But not every Buffett stock is always a great buy at any given time. So, which stocks in Berkshire's portfolio make the most sense to buy in December?
Given the holiday shopping season now well underway, the answer should be pretty clear: credit card companies. In Berkshire's portfolio, the company owns three of the four major U.S. credit card companies: American Express (NYSE: AXP) , Visa (NYSE: V) , and Mastercard (NYSE: MA) . A closer look at this trio of stocks makes it clear that right now could be a great purchasing point.
So, why does Buffett like the credit card companies so much? Well, he's a big fan of the "toll booth" business model, where companies generate revenue by charging fees each time their essential products and services are used. For this trio of credit card companies, that's a lot of usage. A 2023 survey by Forbes Advisor found that only 9% of Americans typically pay for purchases with cash. That means the other 91% of the billions of transactions going on every month are paid with some form of plastic, and it's a good bet that each swipe generates money for one of these three.
For further details see:
3 Warren Buffett Stocks to Buy Hand Over Fist in December