2 Warren Buffett Stocks to Buy Hand Over Fist and 1 to Avoid

The financial sector is the bedrock of the world's economy. It's worth an estimated $22 trillion, nearly a quarter of global gross domestic product (GDP). Given these facts, it's unsurprising that famed investor Warren Buffett has numerous financial stocks within the larger portfolio he oversees for his holding company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B).

Buffett has quite the reputation for picking winners over the years, so new investors could do worse than potentially follow his lead and add some of these stocks to their portfolios as well. But Buffett isn't perfect and there are also stocks in Berkshire's portfolio that aren't good buys right now. If you are looking for a great starting point to begin your investing adventures, consider these two financial stocks potentially worth scooping up. There's also at least one in the bunch you'll be better off avoiding right now.

Payments and credit card company American Express (NYSE: AXP) wouldn't seem like a stock you'd want to buy right now. Defaults on car and personal loans recently hit their highest points in the past decade, signaling weakening consumers and a potentially tricky operating environment for lenders like American Express. Credit cards are unsecured loans, meaning no asset is tied to paying them back. Struggling people will pay their mortgage and car loans first because they don't want them taken away.

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Source Fool.com