2 Warren Buffett Stocks That Could Go Parabolic
Billionaire Warren Buffett has delivered a 20% average annual return to the shareholders of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) from 1965 through Dec. 31, 2021. At that rate, a dollar doubles every four years, which isn't easy to accomplish. You can stack the odds in your favor, however, by following in the Oracle of Omaha's footsteps.
While many of Berkshire's holdings are slow-growing stalwarts, such as Coca-Cola and American Express, a few have the potential to deliver above-average returns. Paramount Global (NASDAQ: PARA) (NASDAQ: PARA.A) and HP (formerly Hewlett-Packard) (NYSE: HPQ) are two recent additions to Berkshire's stock portfolio that could outperform the broader market. These two stocks sell for single-digit price-to-earnings ratios and could double your money within the next four years.
Share prices of Paramount are down 38% over the last year, underperforming the S&P 500's drop of 6%. That has brought this top media company's valuation down to just nine times forward earnings estimates. That's very cheap, considering the average valuation of stocks that comprise the S&P 500 index trade at a price-to-earnings ratio (P/E) of 21.
Source Fool.com
