Warren Buffett is a man of his word. The financial wisdom he shares with the world is also reflected in his investment decisions. And as someone who made a lot of money buying sorry businesses in the last recession, why would a man who said “be greedy when others are afraid” be so quiet? Warren’s Berkshire hathaway sits on one of the largest cash piles in the investment world, and it is disturbing to see if it has not been used yet.
There is a lot of speculation behind this inactivity. Some say he could buy behind the scenes, quietly capitalizing on the situation. Others, less optimistic, think the worst has not yet happened, and Buffett is waiting for this moment. In the current situation, you would be lucky if you had enough money to invest. If you do, how should you emulate Buffett’s “supposed” strategy? Should you buy quietly now or wait for a deeper dive?
The market has been hit hard, but the past two weeks have been a little better. The S & P / TSX index rose more than 24% and many stocks have started to show signs of recovery, at least for now. But even during the crisis, not all stocks fell in the same way; neither would the recovery be the same. If you are looking to buy now, you should consider stocks that are still available at greatly reduced prices.
Canadian Apartment Properties REIT, or CAPREIT, is a dividend aristocrat. The company has an eight-year history of slowly but gradually increasing payments. It is also a decent growth stock. The company manages more than 65,000 residential rental apartments, making it one of the largest REITs in the country. It has a market capitalization of $ 7.6 billion.
Currently, the stock is available at $ 44.79 per share – a 26% discount from its annual high. The yield is currently at a modest 3.13%. But the growth prospects it offers is significant. Its five-year CAGR is 12.5%.
If you think the market will continue to fall and you will buy when stocks hit bottom, you should look for very solid companies. You have to find companies that can survive even after falling for months in a pandemic.
One of these companies is Fortis. He’s one of the oldest aristocrats, and he’s a utility company. It provides electricity and gas – two necessities that people will need, no matter how difficult. He has already shown his resilience. The title fell 28% in late March, and it is already going up. Currently, it is trading at just 5.3% of its annual peak.
If you are looking to buy a good stock on the downside and hold it for a while, then Fortis may be an amazing choice. If history is an indicator, the stock has the potential to reward you with continuously growing dividends as well as capital gains.
When Warren Buffett speaks, the market listens. But it’s hard to listen when the Omaha Oracle is silent. So you should listen to his past wisdom. Find good deals – good businesses that you think will recover – and invest in them.
BRAND NEW! For a limited time, The Motley Fool Canada is releasing a new urgent investment report outlining our 5 favorite stocks for investors over the age of 50.
So if you’re looking to put your finances on the right track and you’re almost retired, we’ve got you covered!
You are invited. Simply click on the link below to discover the 5 actions that we expressly recommend to INVESTORS 50 AND OVER. To collect your FREE copy, simply click on the link below now. But you’ll want to hurry – this free report is available for a short time only.
Click here for your free report!