Investors have been eager to soak up investing advice from Warren Buffett since the onset of the COVID-19 pandemic. Early on, Buffett proved that he was as mortal as the rest of us in the investing world when he made an ill-conceived bet on the airline industry. However, he would quickly retreat from that position in the early spring.
Today, I want to discuss why the Oracle (NYSE:ORCL) of Omaha has been so bearish on the bitcoin question. Moreover, I’ll look at two stocks that Warren Buffett may be bullish on in this climate.
Why Warren Buffett is ice cold on bitcoin Bitcoin has always had its share of detractors. Indeed, it has encountered headwinds in late February as influential voices like Bill Gates and U.S. Secretary of the Treasury Janet Yellen have come out against the top digital currency. Still, Warren Buffett has made their criticisms seem mild in comparison.
In February 2020, Buffett blasted bitcoin on CNBC. “Cryptocurrencies have basically no value and they don’t produce anything,” he said. “They don’t reproduce, they can’t mail you a check, they can’t do anything…. in terms of value: zero.” In January 2018, Buffett predicted a “bad ending” for the crypto space. Interestingly, bitcoin would fall from its perch in early 2018.
Suffice it to say, Buffett would almost certainly steer away from the Purpose Bitcoin ETF (TSX:BTCC.B). This ETF launched last week and has suffered from bitcoin’s big plunge early this week.
What stocks is the Oracle of Omaha buying right now? We’ve established that Warren Buffett is unlikely to warm on bitcoin anytime soon. However, he has turned to endorse equities in the healthcare space in late 2020. This came on the heels of the must anticipated vaccine rollout.
Canada has struggled in comparison to its peers due to production setbacks. There are no big vaccine-focused stocks to snag on the TSX. However, these two healthcare stocks are still worth adding to emulate the investing legend.
NorthWest Healthcare (TSX:NWH.UN) offers investors exposure to a portfolio of high quality health care real estate around the world. Its shares were up marginally in mid-morning trading on February 24. This top dividend stock has increased 1.3% in 2021 so far. Investors can expect to see its fourth quarter and full year 2020 results in early March.
Shares of NorthWest Healthcare last had a favourable price-to-earnings ratio of 14 and a price-to-book value of 1.4. It last paid out a monthly dividend of $0.067 per share. That represents an attractive 6.4% yield.
AndLauer Healthcare (TSX:AND) is one stock that Warren Buffett might have liked on the TSX. Its shares were up 7.66% in mid-morning trading at the time of this writing. The stock spiked yesterday after a big announcement.
On February 23, Andlauer announced agreements to acquire 100% of Skelton Canada and 49% of Skelton USA. Skelton has grown into a leading transportation partner to the Canadian pharmaceutical and biologics industry. The company is a leading specialized transportation provider in 2°C and 8°C shipments, bolstering Andlauder’s capacity in this space.
This promising TSX stock also offers some income. It last paid out a quarterly dividend of $0.05 per share, which represents a 2.8% yield.
The post Warren Buffett: Forget Bitcoin and Buy These Stocks Instead appeared first on The Motley Fool Canada.
Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Andlauer Healthcare Group Inc. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.
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