Monday, January 13, 2014

10 Best Warren Buffett Stocks To Buy Right Now

Warren Buffett has been showered with encomiums during his storied investment career.

Now, a new study by researchers at AQR Capital Management and the Copenhagen Business School calls his investment performance the best among all stock and mutual funds that have existed for at least three decades.

Looking at all U.S. stocks from 1926 to 2011 that have been traded for more than 30 years, the study found that between 1976 and 2011, Buffett’s Berkshire Hathaway generated a Sharpe ratio of 0.76, compared with the stock market’s 0.39.

The Sharpe ratio measures risk-adjusted returns.

In a similar vein, Buffett’s Sharpe ratio was higher than the median ratio of 0.37 for the 196 U.S. mutual funds in existence for more than 30 years.

The study’s authors noted that Buffett’s Sharpe ratio was lower than many investors might have imagined. Moreover, adjusting for the market exposure, his information ratio was 0.66.

“This Sharpe ratio reflects high average returns, but also significant risk and periods of losses and significant drawdowns,” they wrote.

10 Best Warren Buffett Stocks To Buy Right Now: Nuveen Tax-Advantaged Total Return Strategy Fund (JTA)

Nuveen Tax-Advantaged Total Return Strategy Fund operates as a diversified and closed-end management investment company. The fund primarily invests in dividend-paying common stocks. It also invests in senior loans, U.S corporate bonds, notes and debentures, convertible debt securities, as well as high yield debt securities. Its portfolio primarily includes investments in oil and gas, diversified telecommunication, services, diversified financial services, tobacco, insurance, aerospace and defense, metals and mining, commercial banks, electric utilities, thrifts and mortagage finance, and paper and forest product sectors. Nuveen Tax-Advantaged Total Return Strategy Fund was organized in 2003 and is based in Chicago, Illinois.

Advisors' Opinion:
  • [By Dividends4Life]

    According to a Gabelli Funds report, managed distribution policies offer several advantages, including:1. Lower difference between the fund�� market price and its NAV per share.2. Provides support during periods when the stock market is in a decline.3. Provides a measurable performance target for the investment adviser.Below are several high-yield funds from CEFA that have a managed distribution policy (yields as of December 16):Aberdeen Australia Eqty (IAF)- Distribution Yield: 10.4%- Income Yield: 3.46%Bexil Advisers LLC� (DNI)- Distribution Yield: 11.1%- Income Yield: 3.56%BlackRock En Capital&Inc (CII)- Distribution Yield: 8.78%- Income Yield: 2.34%Cornerstone Strat Value (CLM)- Distribution Yield: 18.77%- Income Yield: 1.83%Cornerstone Total Return (CRF)- Distribution Yield: 19.10%- Income Yield: 0.85%Delaware Inv Div & Inc (DDF)- Distribution Yield: 6.70%- Income Yield: 5.26%Gabelli Equity Trust (GAB)- Distribution Yield: 7.58%- Income Yield: 1.54%Gabelli Utility Trust (GUT)- Distribution Yield: 9.45%- Income Yield: 2.84%MFS Special Value Trust (MFV)- Distribution Yield: 9.60%- Income Yield: 5.73%Nuveen Tx-Adv TR Strat (JTA)- Distribution Yield: 6.70%- Income Yield: 3.12%TCW Strategic Income (TSI)- Distribution Yield: 10.54%- Income Yield: 7.88%Zweig Total Return (ZTR)- Distribution Yield: 7.27%- Income Yield: 1.95%As noted in the Gabelli report, a managed distribution policy may create confusion regarding the true current yield since the reported yield includes the return of capital portion. You can see the disparity above between the income yield and the distribution (reported) yield.If you are looking for a sustainable and growing dividend, you may want to consider some blue-chip dividend stocks such as these with a Free Cash Flow Payout less than 50%, 50+ years of consecutive dividend increases and a 2%+ yield:3M Co. (MMM) is a diversified global company provides enhanced product functionality in electronics, health care, industrial, consumer

10 Best Warren Buffett Stocks To Buy Right Now: Idenix Pharmaceuticals Inc.(IDIX)

Idenix Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery and development of drugs for the treatment of human viral diseases in the United States and Europe. Its primary research and development focus is on the treatment of patients with hepatitis C virus (HCV). The company?s HCV discovery program focuses on various classes of drugs, including nucleoside/nucleotide polymerase inhibitors, protease inhibitors, non-nucleoside polymerase inhibitors, and NS5A inhibitors. It develops products and drug candidates for the treatment of patients with hepatitis B virus (HBV), human immunodeficiency virus (HIV) type-1, and acquired immune deficiency syndrome (AIDS). The company principally has a collaboration agreement with Novartis Pharma AG for the development and commercialization of telbivudine, a drug for the treatment of HBV under the Tyzeka/Sebivo names. Idenix Pharmaceuticals, Inc. was founded in 1998 and is headquartered in Cambridge, Massachusetts.

Advisors' Opinion:
  • [By Max Macaluso, Ph.D.]

    Idenix Pharmaceuticals (NASDAQ: IDIX  ) received more bad news today after reporting that the FDA will require more preclinical data before it can proceed with clinical trials for its experimental hepatitis C drug IDX20963. In the following video, health-care analyst Max Macaluso discusses what this news means in the context of Idenix's previous drug development problems.�

10 Best Cheap Stocks To Own Right Now: General American Investors Inc. (GAM)

General American Investors Company, Inc. is a self management investment trust. The firm invests in the public equity markets across the globe. It employs a fundamental analysis with a bottom-up stock picking approach. General American Investors Company, Inc. was founded in 1927 and is based in New York, New York.

10 Best Warren Buffett Stocks To Buy Right Now: Armada Data Corp (ARD.V)

Armada Data Corporation, an information and marketing services company, provides data, as well as information technology, e-commerce, and online marketing services to corporate and retail customers. It operates in six divisions: Insurance Services, Retail Services, Dealer Services, Auto Marketing Group Services, Internet Technology, and Advertising/Marketing Services. The Insurance Services division sells total-loss replacement vehicle reports to Canadian insurance companies. The Retail Services division sells new car pricing data to consumers primarily through its Website CarCostCanada.com, as well as resells this new car pricing data to qualified third party vendors. The Dealer Services division sells new vehicle leads derived from membership sales from Car-Cost-Canada. The Internet Technology division offers Website hosting, Website development, email, online marketing, search engine optimization, cloud, technical support, and network support services. The Auto Marketin g Group Services division is involved in the administration and maintenance of certain Websites of its business partners. The Advertising/Marketing Services division engages in the sale of online third party Website advertising and consulting, as well as other new car or car business related marketing activities. The company, through its subsidiary, Big & Easy Bottle Brewing Company Inc., also develops and markets a microbrewery in a bottle solution that allows consumers to produce premium beer. Armada Data Corporation was founded in 1999 and is headquartered in Mississauga, Canada.

10 Best Warren Buffett Stocks To Buy Right Now: Starbucks Corporation(SBUX)

Starbucks Corporation purchases and roasts whole bean coffees. It operates approximately 16,858 stores, including 8,833 company-operated stores and 8,025 licensed stores. The company offers approximately 30 blends and single-origin premium arabica coffees. It also provides handcrafted beverages, such as fresh-brewed coffee, hot and iced espresso beverages, coffee and non-coffee blended beverages, Vivanno smoothies, and Tazo teas; and merchandise products, including home espresso machines, coffee brewers and grinders, coffee mugs and accessories, packaged goods, music, books, and gift items. In addition, it offers fresh food items, which comprise baked pastries, sandwiches, salads, oatmeal, yogurt parfaits, and fruit cups. Further, it also provides VIA ready brew coffee, bottled frappuccino beverages, discoveries chilled cup coffee, doubleshot espresso drinks, iced coffee, whole bean coffee, and ice creams. The company?s brand portfolio includes Tazo tea, Ethos water, Seatt le?s Best Coffee, and Torrefazione Italia Coffee. Starbucks Corporation sells its products in approximately 50 countries worldwide. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

Advisors' Opinion:
  • [By Kevin Chen]

    After 15 years operating in the Thailand market, Starbucks� (NASDAQ: SBUX  ) is set to double its store count in the country over the next five years.

  • [By Charley Blaine]

    Apple (NASDAQ: AAPL) reports fiscal-fourth-quarter results after Monday's close. Starbucks (NASDAQ: SBUX) reports after Wednesday's close. Oil giants Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) report on Thursday and Friday, respectively.

  • [By Rick Munarriz]

    The shares have more than tripled since bottoming out last summer. Worrywarts at the time feared that Starbucks (NASDAQ: SBUX  ) would eat into the company's dominant market share with its espresso-centric coffee maker. There were also fears that last September's expiration of K-Cup patents would translate into the end of growth at Green Mountain.

10 Best Warren Buffett Stocks To Buy Right Now: Pathfinder Bancorp Inc.(PBHC)

Pathfinder Bancorp, Inc. operates as the holding company for Pathfinder Bank that offers banking products and services to individuals, families, and businesses primarily in Oswego and parts of Onondaga counties of New York. It offers various deposit products, including demand deposits, NOW accounts, savings accounts, time deposits, passbook savings, money management and money market deposit accounts, and interest-bearing and noninterest-bearing checking accounts. The company also originates commercial and residential real estate loans; commercial loans, including loans to municipalities; and consumer loans, such as second mortgage loans, home equity lines of credit, and direct installment and revolving credit loans. It operates through seven full-service offices. The company was founded in 1859 and is headquartered in Oswego, New York. Pathfinder Bancorp, Inc. is a subsidiary of Pathfinder Bancorp, M.H.C.

10 Best Warren Buffett Stocks To Buy Right Now: Alexandria Minerals Corporation (AZX.V)

Alexandria Minerals Corporation, a development stage company, engages in the acquisition, exploration, and development of mineral resource properties in Canada. It explores for copper, gold, silver, and zinc ore properties. The company holds interests in 24 mineral properties in 3 areas in the Abitibi Belt in northern Quebec and Ontario. It primarily focuses on exploring the Cadillac Break property group consisting of 21 individual properties covering 12,526 hectares on 675 claims located in Val d�Or, Quebec. The company was founded in 2002 and is headquartered in Toronto, Canada.

10 Best Warren Buffett Stocks To Buy Right Now: Patient Home Monitoring Corp (PHM.V)

Patient Home Monitoring Corp. provides home-based monitoring services and supplies for cardiology patients in the United States. The company offers its products and services to patients that take prescription blood thinners, such as Coumadin. Its in-home testing services enable to monitor PT/INR from home. The company is based in San Francisco, California.

10 Best Warren Buffett Stocks To Buy Right Now: United Overseas Australia Ltd (EH5.SI)

United Overseas Australia Limited engages in the construction, development, and resale of residential and commercial land and buildings primarily in Australia and Malaysia. It is also involved in the investment of rental properties; and investment of UOA real estate investment trust. The company, formerly known as United Overseas Securities Limited, was founded in 1987 and is based in Osborne Park, Australia.

10 Best Warren Buffett Stocks To Buy Right Now: Great Portland Est(GPOR.L)

Great Portland Estates plc, through its subsidiaries, operates as a real estate investment trust (REIT). It develops freehold and leasehold, residential, retail, and office properties in London. The company has elected to be treated as a REIT under the Internal Revenue Code and would not be subject to federal income tax, provided it distributes approximately 90% of its taxable income to its shareholders. Great Portland Estates plc is based in London, the United Kingdom.

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