Warren Buffett is doing it again. Berkshire Hathaway has the returns of the S&P 500 Index since Buffett took control of the company in 1965. Buffett continues to beat the market this year, with Berkshire shares rising twice as much as the S&P.
Some of Berkshire’s strong gains can be attributed to the successful stocks in its investment portfolio. Here are Buffett’s three best-performing stocks so far in 2024.
1.Mitsubishi
Buffett listed Mitsubishi (OTC:MSBHF) He expects Berkshire to be among the investments that will be “held indefinitely.” That could be a wise decision. Shares of the Japanese conglomerate have risen over 40% this year.
Mitsubishi’s business spans a wide range of industries. It operates hundreds of companies that produce natural gas, manufacture chemicals, mine natural resources, operate convenience stores, and more.
Berkshire owns around 9% stakes in five Japanese trading companies. Mitsubishi is the largest of the group. Buffett likes these companies for their diversification, their policies that reward shareholders (particularly through paying dividends and smart stock buybacks), and their solid management teams.
2. Nu Holdings
It is likely that one of Berkshire’s two investment managers, Todd Combs or Ted Weschler, purchased Berkshire stock Now stocks (NYSE:NOW) and not Buffett himself. However, if Berkshire owns a stake in a company, Buffett also owns a stake. And the legendary investor is probably happy with his position in Nu right now, with the fintech stock up over 30% year-to-date.
Nu operates a digital financial services platform that serves nearly 94 million customers in Brazil, Colombia and Mexico. It is the fifth largest financial services company in Latin America based on the number of customers.
In the fourth quarter of 2023, Nu’s revenue increased 57% year over year on a constant currency basis to a record high of $2.4 billion. Adjusted profit rose nearly 250% to $395.8 million. The company is particularly strong in Brazil, where 53% of the country’s population uses its platform.
3. DaVita
Buffett initially opened a position in DaVita (NYSE:DVA) in 2011. Today, Berkshire owns over 41% of the company. DaVita has been a big winner for Buffett so far in 2024, with its shares rising nearly 28%.
DaVita is one of the largest kidney dialysis providers in the United States. The company operates 2,675 outpatient dialysis centers in the United States and 367 centers in 11 other countries. DaVita’s stable business model fits well with Buffett’s investment philosophy.
The COVID-19 pandemic presented DaVita with major challenges. However, the company appears to be in good shape at the moment. DaVita is likely to soon significantly expand its international business through acquisitions and become the largest dialysis service provider in Latin America.
Are these Buffett stocks the best buys now?
I think these successful Buffett stocks are good choices for investors right now – but for different types of investors.
Growth investors may like Nu; The company has excellent opportunities for sustainable growth in Latin America. Income investors will likely appreciate the stability of Mitsubishi’s dividend, which currently stands at just over 2%. DaVita could appeal to value investors with a forward price-to-earnings ratio of just 14.6.
Should you invest $1,000 in DaVita now?
Before you buy DaVita shares, you should consider the following:
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Keith Speights holds positions at Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.
Warren Buffett’s 3 Best-Performing Stocks So Far in 2024: Should They Be Buyed Now? was originally published by The Motley Fool