Warren Buffett Bump: I’ll Have What He’s Having

Warren Buffett fans are likely to follow his recent investment moves. If you’re bullish about the 5G rollout like Buffett, Telus stock offers tremendous long-term growth potentials.

| More on:

Warren Buffett’s stock portfolio in 2021 has a different composition following Berkshire Hathaway’s purchases in the fourth quarter of 2020. Buffett’s conglomerate has been deploying capital to take new positions and add more to some of its existing investments.

Bank of America and Apple are the top two stocks in terms of the number of shares, although the iPhone-maker is tops in market value. Berkshire sold its entire holdings in Barrick Gold, JPMorgan Chase, M&T Bank, PNC Financial, and Pfizer. The revamped roster includes brand-new stakes in two industry leaders.

Buffett’s loyal followers will probably rebalance their stocks portfolios and have what the GOAT of investing is having. If you’re investing in Canada, an industry leader is an attractive and profitable option in 2021 and beyond.

Stock build-up

Berkshire Hathaway is adding more healthcare stocks to its basket. After dumping Pfizer, the company increased its holdings in AbbVie, Merck, and Bristol-Myers Squibb. Buffett held Costco and Walmart for 20 years, but they are now missing in his portfolio. Instead, he further increased his holdings in grocery store chain Kroger to 33.5 million shares.

Holdings in lifestyle company RH (Restoration Hardware) are now 1.7 million shares. Buffett bought more shares of T-Mobile, the second-largest wireless provider in the United States. The position stands at 5.2 million shares. This move reflects the bullish sentiment of the Berkshire chief on the 5G network rollout.

Of all the stocks where Buffett increased its position, only Verizon Communications was granted a confidential status by the SEC. Berkshire convinced the commission that by disclosing the transaction, the share price of the U.S. wireless could move so much and hamper the purchasing process altogether.

Brand-new stakes

Berkshire’s brand-new positions are in insurance broker Marsh & McLennan and oil major Chevron. Suncor Energy is the only TSX stock left, although the position in the oil sands king is down to 13.8 million shares. The US$4.8 billion investment in Chevron is a sign Buffett is optimistic about an oil rebound.

Top TSX value stock

TSX investors can follow Buffett’s lead, particularly in the telecommunications sector. Telus (TSX:T)(NYSE:TU), Canada’s second-largest telco, offers tremendous growth potential. Network connectivity is more critical than ever, so the timing to invest in this $33.39 billion industry leader is perfect.

For the seventh consecutive time, U.K.-based Opensignal named Telus as the best mobile network in Canada. It boasts of the fastest average download speeds. Seattle-based Ookla called Telus winner of the fastest mobile network and best mobile coverage speed tests awards in Q3-Q4 2020.

TELUS has spent nearly $240 billion in network infrastructure, spectrum, and operations since 2020. The company commits to enhance the coverage, speed, and reliability of its networks. Over the next three years, it will invest $40 billion more to support the 5G network’s rollout. For would-be investors, this top-tier telco stock pays a lucrative 4.88%. The payouts should endure for years like its core business.

Portfolio makeover

Call it a makeover if you wish, but Warren Buffett is rebalancing his portfolio to conform to the post-pandemic era. Most of his latest investment moves gears toward for the long term. Perhaps he should consider Telus if he’s looking to add another Canadian value stock.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. David Gardner owns shares of Apple. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), Bristol Myers Squibb, and Costco Wholesale. The Motley Fool recommends RH, TELUS CORPORATION, T-Mobile US, and Verizon Communications and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares).

More on Dividend Stocks

dividends can compound over time
Dividend Stocks

Want a 7% Yield? The 3 TSX Stocks to Buy Today

These TSX stocks are offering high yields of over 7%, making them attractive for investors seeking steady passive income.

Read more »

how to save money
Dividend Stocks

The Smartest Dividend Stocks to Buy With $200 Right Now

These smartest dividend stocks can consistently pay and increase their dividends in the coming years, irrespective of the macro uncertainty.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

3 Utility Stocks That Are Smart Buys for Canadians in November

These utility stocks benefit from regulated businesses and generate predictable cash flows that support higher dividend payouts.

Read more »

Start line on the highway
Dividend Stocks

Invest $10,000 in This Dividend Stock for $600 in Passive Income

Do you want to generate passive income? Forget the rental unit! This option will save you the mortgage yet still…

Read more »

Senior uses a laptop computer
Dividend Stocks

1 Reliable Dividend Stock for the Ultimate Retirement Income Stream

TD Bank (TSX:TD) shares are way too cheap with way too swollen a yield for retirees to pass up right…

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

Is Brookfield Infrastructure Partners a Buy for its 4.75% Yield?

Brookfield Infrastructure Partners (BIP) has a 4.75% dividend yield. Is it worth it?

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution

The TFSA is attractive for investors who want to generate tax-free passive income.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks Worth Holding Forever

These TSX stocks have the potential to grow their dividends over the next decade, making them top investments for TFSA…

Read more »