After the stronger than expected jobs report, the next big data point will come on Thursday when the consumer price index figures for September are released. While inflation likely has peaked, the number will come in way above the Federal Reserve’s 2% target rate. That, added to the start of the third-quarter earnings reporting season, could stir up the volatility cauldron, and for shell-shocked investors the best move may be to the safest Warren Buffett stocks.
If any investor has stood the test of time, it is Warren Buffett. For years, the “Oracle of Omaha” has had a rock-star-like presence in the investing world. His annual Berkshire Hathaway shareholders meeting draws literally thousands of loyal fans who are investors. Known for his long buy-and-hold strategies and his massive portfolio of public and private holdings, he remains one of the preeminent investors in the world.
The Federal Reserve has stated its intent to have the funds rate up to 4.40% to 4.60% by the end of the year. That implies yet another 75-basis-point increase in November and a 50-basis-point raise in December. That does not bode well for stocks, so now it makes sense to raise as much cash as possible. For those looking to add new positions now, we found seven Warren Buffett favorites that can weather what looks to be an impending storm for stocks.
While all these top stocks are Buy rated across Wall Street, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
American Express
This stock has backed up recently and is offering the best entry point since late last year, despite posting solid second-quarter results. American Express Co. (NYSE: AXP) provides charge and credit payment card products and travel-related services worldwide. Its products and services include payment and financing products network services accounts payable expense management products and services, and travel and lifestyle services.
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The company’s products and services also comprise merchant acquisition and processing, servicing and settlement, point-of-sale marketing and information products and services for merchants, and fraud prevention services, as well as the design and operation of customer loyalty programs. It sells its products and services to consumers, small businesses, midsized companies and large corporations through mobile and online applications, third-party vendors and business partners, direct mail, telephone, in-house sales teams and direct response advertising.
Shareholders receive a 1.50% yield. Wells Fargo has a $180 price target on American Express stock. The consensus target is $175.92, and shares closed on Friday at $139.00.
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