The most famous investor in the world has returned to its victorious ways. Warren Buffett Berkshire Hathaway: (NYSE: BRK.A) (NYSE: BRK.B) is well behind S&P 500: In 2020. But the shares exceeded the index in 2021.
How will Buffett perform in the new year? I doubt he will do well. However, some Berkshire estates are more likely to grow than others. Here is my selection of the three best Buffett shares to buy in 2022.
Amazon.com: (NASDAQ: AMZN) In 2021, Buffett’s performance was affected. Shares of the Internet giant rose less than 5%, much lower than the profit of Berkshire itself. But one analyst believes that stocks could jump more than 30% to $ 4,500 in 2022. I do not know if that prediction will come true, but I will not be surprised if it does.
The company has made significant investments over the past few years, expanding its storage capacity ը transport fleet. I expect that these investments will start to yield good results in the new year.
Amazon’s year-on-year comparisons will also not be nearly as tough in 2022 as they were in 2021. However, 2020 was extraordinary because of the epidemic. Look for the company to return to steady revenue growth amid strong revenue growth over the next few quarters.
I’m most optimistic about Amazon’s cloud computing business. Revenue growth for Amazon Web Services continues to accelerate. I think that momentum will continue until 2022.
Maybe Amazon won’t make a 30% + profit this year. But my view is that stocks are more likely to help Buffett’s overall performance than hinder it.
What are the most important shares of Berkshire’s fortune? Apple: (NASDAQ: AAPL). It remains Berkshire’s largest holding portfolio. Apple’s 35% profit in 2021 was definitely key to returning to the Buffett winner column.
The company should not face supply chain failures that occurred last year in 2022. This can increase the sales of the iPhone. The increased intake of 5G should also serve as a strong wind.
As a result of these factors, Apple’s service business should also see strong growth in the new year. The more iPhones used, the better the Apple App Store, Apple Music, iCloud, and other parts of its ecosystem.
Apple may release the first generation of its augmented reality / virtual reality (AR / VR) headphones this year. While headphone sales will have a bigger impact in 2023, investors are promising. I think Apple’s long-term AR / VR capability should give stocks a lot of room to work in the coming years.
Like Amazon, Mastercard: (NYSE: MA) 2021 weighed in on Berkshire performance. The shares of the leading financial services ended the year with a positive result. However, do not expect Mastercard to last much longer.
Wall Street Investment Company Cowen Mastercard was recently selected as one of its two favorite stocks in 2022. I think the mood for growth is right.
The ongoing economic recovery in 2022 should work in favor of Mastercard. In particular, as more people travel, the company’s payments will increase.
I also believe that Mastercard Instalments, the company’s “Buy Now, Pay Later” (BNPL) program, will gain new momentum in the new year. Mastercard’s BNPL solution is great for lenders as they do not have to work with merchants individually. It is also easy to use for traders. Mastercard CEO Michael Miebach said in a statement on the company’s third-quarter profit that there was “strong interest from players on all sides of the ecosystem.”
The price target of Mastercard Consensus Analysts reflects a 19% uptrend. My opinion is that the profit is quite affordable in 2022.
This article presents the opinion of a writer who may disagree with the position of the “official” recommendations of Motley Fool Premium Consulting. We are motley! Questioning an investment thesis, even our own, helps all of us think critically about investing, making decisions that help us become smarter, happier, and richer.