Warren Buffett is doing the same thing again. berkshire hathaway exceeded the return of S&P500 Buffett continues to beat the market this year, with Berkshire stock rising twice as much as the S&P stock.
Part of Berkshire's big gains can be attributed to high-flying stocks in its investment portfolio. Here are Buffett's three best-performing stocks through 2024.
1. Mitsubishi
Buffett listed mitsubishi (OTC: MSBHF) Of that investment, he expects Berkshire to “hold on indefinitely.” That might be a wise decision. The Japanese conglomerate's stock has soared more than 40% this year.
Mitsubishi's business spans a wide range of industries. It operates hundreds of companies that produce natural gas, manufacture chemicals, extract natural resources, operate convenience stores, and more.
Berkshire owns about 9% of the shares in five Japanese trading companies. Mitsubishi Motors is the group's largest company. Buffett likes these companies because of their diversification, policies that reward shareholders (especially dividend payments and smart share buybacks), and solid management teams.
2. New Holdings
One of Berkshire's two investment managers, Todd Combs or Ted Weschler, likely bought the stock. New Holdings (New York Stock Exchange: NU) Not Buffett himself, however, if Berkshire owns stock in a company, Buffett also owns stock. And the legendary investor, whose fintech stock is up more than 30% since the beginning of the year, is probably happy with his current position at Nu.
Nu operates a digital financial services platform serving approximately 94 million customers in Brazil, Colombia, and Mexico. Based on the number of customers, it ranks as the fifth largest financial services company in Latin America.
In the fourth quarter of 2023, Nu's revenue increased 57% year over year on a constant currency basis to a record $2.4 billion. Adjusted profit increased approximately 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 first started the position by davita (NYSE:DVA) Berkshire currently owns more than 41% of the company. DaVita has been a big winner for Buffett so far in 2024, with the stock up nearly 28%.
DaVita is one of the largest kidney dialysis service 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 has posed significant challenges for DaVita. However, the company currently appears to be in good financial shape. DaVita should soon significantly expand its international operations through acquisitions and become Latin America's largest dialysis service provider.
Should you buy these top-performing Buffett stocks now?
I think these Buffett stocks are good choices for investors right now, but they're different types of investors.
Growth investors will love Nu. We have great opportunities for sustained growth in Latin America. Income investors likely like the stability of Mitsubishi Motors' dividend, which currently yields just over 2%. DaVita's forward price-to-earnings ratio of just 14.6x may appeal to value investors.
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Keith Speights has a position at Berkshire Hathaway. The Motley Fool has a position 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 of 2024 So Far: Should You Buy Now?Originally published by The Motley Fool
