Energy and dividend stocks that warren buffets like

Buffett is a fan of energy and dividend stocks

Oil prices have been on a rise this year, more so following Russia’s invasion of Ukraine. In tandem, inflation has skyrocketed, reaching a 40-year high in the US. Oil has historically worked as a hedge against inflation. Based on his stock buys, Warren Buffett likely believes there’s more upside for oil prices.

In the year to date, Occidental’s stock price has soared 120% while Chevron has jumped 30%. This is in sharp contrast to the S&P 500’s 17% slump.

Buffett also likes well-managed companies with low debt, strong cash flows, growing dividends, and share buybacks. Many of his stock picks check those boxes.

For instance, Occidental raised its annual dividend payout by 1,200% in February. Chevron’s dividend yield in 2021 was an attractive 4.5%. Apple paid out $14.4 billion in dividends last year and has authorised $90 billion in share buybacks.

Lessons from Warren Buffett

Over the course of his illustrious investing career, Buffett has given us regular investors many words of wisdom. If you want to take a page from Buffett, here’s what he’s said about his key investing principles.

Think long-term. “You’ve got to be prepared when you buy a stock to have it go down 50% or more and be comfortable with it, as long as you’re comfortable with the holding.”

Buy what you know. “Never invest in a business you cannot understand.”

Focus on long-term intrinsic value. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Don’t time the market. “We haven’t the faintest idea what the stock market is gonna do when it opens on Monday — we never have.”

The last point comes from his most recent Berkshire Hathaway annual shareholders meeting. He pointed out that there’s never a perfect time to buy a stock. Rather, he prefers to do his research, invest in the stock, then observe the stock market over time to determine if he should buy more shares or sell the stock.

In times of volatility, his investing principles can help you navigate the market’s ups and downs. Ultimately, to invest like Warren Buffett, patience is key. As he wisely noted, “If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.”buffet