Down Over 30%, 2 Unstoppable Stocks That Are Compelling Buys for April

One of the best ways to generate outsized returns in the stock market is by buying quality businesses at a good price and letting them compound over time. Investors will often go to great lengths to find a company that is unproven but has the potential to be a 10-bagger or better in the years to come. Yet often, the greatest investments lie hidden in plain sight.

One of my personal favorite examples is when Warren Buffett-led Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) began buying Apple (NASDAQ: AAPL) stock in 2016. Apple was a powerhouse and a relatively obvious investment. Yet investors were selling the stock over fears that Apple wouldn't be able to grow both its services and hardware business and retain customers within its ecosystem. Boy, were they wrong.

Since Berkshire began buying Apple on May 16, 2016, Apple stock is up a staggering 644%. While I certainly don't expect Starbucks (NASDAQ: SBUX) or The Walt Disney Company (NYSE: DIS) stock to increase by more than sixfold in less than six years, I would say that both companies have strong brands and should be able to grow in the decades to come. Here's why.

Continue reading


Source Fool.com