Let’s check in with Berkshire Hathaway

Are these Warren Buffett stocks really worth buying? You are receiving this message because you have visited Daily Picks 365 and requested to receive daily market updates, If you no longer wish to be contacted, please click the removal link [here](. [Are These 2 New Warren Buffett Stocks Really Worth Buying?]( [Click here to read full article.]( Last week closed with a sudden market rally after October’s inflation data was better-than-anticipated, but this week’s trading has been unpredictable. There’s a level of uncertainty here; investors want to buy – but inflation remains high, and interest rates are still rising, making for a tough economic environment. But it’s been tough all year long, and that hasn’t stopped legendary billionaire investor Warren Buffett from taking his Berkshire Hathaway firm on a months-long stock shopping jaunt. Buffett has been buying up stocks despite inflation, and it’s worth taking a moment to look at just what he’s seeking when he picks a stock. His key point, in nearly every purchase, is to buy into a company that makes stuff. This has been a long-standing policy of his, but it’s ever more important during an inflationary period. Buffett believes that investors should buy into firms that make products which customers will want or need to buy, no matter the price. These are the companies that will succeed even in an inflationary regime. As he puts it, if customers like or want the products, “It doesn’t make any difference what’s happened to the price level.” So let’s check in with Berkshire Hathaway. According to the firm’s most recent regulatory filings, Buffett has bought heavily into two stocks that at first glance are feeling the pressure. We ran them through the to see whether Wall Street’s cadre of experts agree with his selections. Let’s take a look at the results. Taiwan Semiconductor Manufacturing (TSM) We’ll start with Taiwan Semiconductor, a major firm in one of Taiwan’s major industries. The island country is one of the world’s largest producers of semiconductor chips, and TSM is the largest of its chip companies – and one of the largest chip makers in the world. TSM doesn’t just product chips designed in-house; it is also the global leader in contract chip production, acting as the foundry for other firms. The company boasts a market cap of more than $400 billion, even after seeing its share price drop 33% this year. Semiconductor chips are big business, and TSM saw $56.8 billion in total revenue last year. So far this year, the company has seen year-over-year revenue growth in each quarter; the most recent report, for 3Q22, showed $20.2 billion at the top line, up 36% y/y. On earnings, the company reported $1.79 per ADR unit, up from the $1.08 billion in 3Q21, for 66% increase. Furthermore, the company is guiding toward a 4Q22 top line between $19.9 billion and $20.7 billion. Looking beyond Q4, however, TSMC expects customer inventory drawdowns will weigh on 1H23 results. Trending: [Top 10 Stocks for 2023]( TSM has committed itself to a strong program of cash return to investors, and pays out a regular quarterly dividend. The company has not missed a payment since 2004, and boasts that it has never reduced its quarterly payment. Taking into account currency exchange rates between Taiwan and US dollars, the dividend per US share does sometimes fluctuate. The last payment was declared at 44 cents per share (US currency); at this rate, it annualizes to 2.2%. This company combines two attributes that Warren Buffett has always sought after – a necessary product and a reliable dividend. In his Q3 filings, Buffett revealed a massive buy-in to TSM, of over 60 million shares. This holding is now worth $4.77 billion at current share price. Needham analyst Charles Shi agrees that TSM is a stock to buy, as it offers “a positive risk/reward.” While a deep retrenchment is expected in early 2023, Shi believes the company will find support in the form of better pricing. He writes: “We estimate TSMC’s average wafer price will grow by 23% YoY in 2023, including 6% pricing increases that have been executed across the board, with the rest of the growth coming from the mix shift to advanced nodes, driven by the 5nm ramp of all non-Apple Tier-1 customers and the 3nm ramp of Apple. The pricing growth will offset unit declines and set the stage for a ~10% growth year for TSMC.” To this end, Shi rates TSM shares a Buy along with a $110 price target, indicating potential for 38% upside in the coming year. Overall, TSM has 4 recent analyst reviews on record, and they all agree: this is a stock to Buy, giving it a unanimous Strong Buy consensus rating. The shares are priced at $79.45 and their $99.50 average target implies a 25% one-year upside potential. Louisiana-Pacific Corporation (LPX) The second ‘Buffett-pick’ we’ll look at is Louisiana-Pacific, a Tennessee-based construction materials firm. This company holds a leading position in the global market of oriented strand board and other engineered wood construction and building products. LP markets its product line to builders, contractors, and homeowners, and the current line-up includes wood products for siding, framing, and paneling. LP offers a range of options and upgrades, including fireproofing, weather proofing, and insulation, needed in home construction. LP’s business can vary quarter to quarter, due to fluctuations in the homebuilding industry caused by weather, mortgage rates, and average house prices. That said, the company brought in $852 million in net sales for 3Q22, down 36% from the year-ago period. Adjusted EPS, at $1.72 per share, was down sharply from the $3.87 reported in 3Q21, although it did handily beat the $1.50 forecast. The company has $482 million in cash at the end of the quarter. Looking at the dividend, this firm has been paying out consistently since 1974. The current payment, declared in October for a December 1 payout, is set at 22 cents per common share. The annualized rate of 88 cents per share gives a modest yield 1.4%. The key to it is the reliability. Even though the US home building sector is facing pressures from rising mortgage rates, houses are still getting build – and that means LP’s unique products are still essential. Buffett gave a nod to that in Q3, with a buy of 5,795,906 shares, a new position that is now valued at over $360 million. [Continue reading article here.]( [2 "Strong By" Penny Stocks That Could See 200% Gains (Or More)]( Investors know that the key to profits is in the return – and that means, a willingness to shoulder risk. Risk is relative, of course, and tends to run hand-in-hand with the return potential. Find a stock with a giant return potential, and chances are, you’ve also found one with a higher risk profile. With this in mind, we set out our own search for compelling investments that are set to boom. Using TipRanks’ database, we pulled two penny stocks that have amassed enough analyst support to earn a “Strong Buy” consensus rating. Adding to the good news, each pick boasts over 200% upside potential. [Click here to continue reading...]( , 1919 Taylor Street STE F, Houston, TX 77007, United States You may [unsubscribe]( or [change your contact details]( at any time. Powered by:[GetResponse](