3 Timely Stocks to Buy in Warren Buffett's Favorite Industry
Since taking over Berkshire Hathaway in 1965, Warren Buffett has delivered investors eye-opening returns of roughly 3,641,613% (through 2021), according to the company's annual report. That works out to a 20.1% compound annual gain over those 56 years. A crucial part of Buffett's success is his investments in insurance businesses. Buffett likes insurance companies because of the cash flows they generate, allowing Berkshire Hathaway to invest hundreds of billions of dollars of "other people's money."
Investing in insurance stocks right now is a solid move because these companies can quickly adjust premiums to account for inflation and invest their cash at interest rates that we haven't seen in years. In Buffett's letter to shareholders last year, he elaborated on his love of insurance, saying the products "will never be obsolete, and sales volume will generally increase along with both economic growth and inflation."
Three solid insurance companies you can buy today are Globe Life (NYSE: GL), Aflac (NYSE: AFL), and Progressive (NYSE: PGR). Let's find out a bit more about these three stocks.
Source Fool.com
