Taking a cue from those who are extremely successful in their field can provide investors with a distinct advantage.
Find out why Apple, Netflix, and Suncor Energy are on these investors’ radars.
Reviewing what the world’s best investors are doing is a smart place to start when looking to stock a portfolio with winning investments. Understanding why they took stakes in specific companies can give investors the edge when deciding where to put their hard-earned funds.
With that in mind, we asked three Motley Fool investors to choose companies that the world’s best investors were adding to their portfolios. They offered convincing arguments for Apple Inc.(NASDAQ:AAPL), Netflix, Inc. (NASDAQ:NFLX), and Suncor Energy Inc. (NYSE:SU).
A powerful brand
Tim Green (Apple): Warren Buffett is unquestionably one of the greatest investors of all time. He makes his fair share of mistakes, but that doesn’t stop him from betting big when he sees an opportunity. Apple doesn’t seem like a typical Buffett stock, dependent on constantly churning out new consumer gadgets. But the Oracle of Omaha no doubt believes Apple’s brand provides a major competitive advantage.
Buffett’s Berkshire Hathaway went on a buying spree during the fourth quarter, scooping up 31.2 million additional shares of Apple. That brings the company’s total stake up to 165.3 million shares, worth around $28 billion. This is now Berkshire’s largest stock holding.
For Buffett, Apple’s brand loyalty is likely what matters most. iPhone users tend to stick with the iPhone, often not even considering the alternatives. That’s a recipe for outsized profits. How durable is that brand loyalty? Durable enough for Buffett to hurl nearly $30 billion into the stock.
Another major holding is Netflix, Inc. (NFLX). Netflix’s original content ramp is showing no signs of slowing own – in fact, if anything, it’s speeding up. Netflix CFO David Wells says that the streaming company wants to have somewhere around 700 original shows and movies on the service in 2018, using that previously revealed budget of around $8 billion earmarked for original content.