Buffett Just Bought $8 Billion Of This 5G Stock

Warren Buffett runs Berkshire Hathaway, a large conglomerate. Buffett also controls a $270 billion common stock portfolio within Berkshire Hathaway. This common stock portfolio has massive investments in some of the best businesses you'll find. Berkshire just released their latest 13F filing, which goes over all of the transactions that took place over the fourth quarter of 2020.

Want to know which nine stocks, including some dividend stocks, that Buffett has been buying and possibly the best stocks to buy now? Let's dig in.

Berkshire Hathaway bought nine stocks over the course of Q4 2020.

AbbVie Inc. - stick ticker ABBV;

Bristol-Myers Squibb Co. - stock ticker BMY;

Kroger Co. - stock ticker KR;

Merck & Co., Inc. - stock ticker MRK;

RH, Inc. - stock ticker RH;

T-Mobile US Inc. - stock ticker TMUS;

Chevron Corporation - stock ticker CVX;

Marsh & McLennan Companies, Inc. - stock ticker MMC;

Verizon Communications Inc. - stock ticker VZ.

I think there's a lot to like about Verizon as a long-term investment. First of all, smartphones are practically an extra appendage at this point. And this reliance on mobile data and communications is only increasing with the sudden and widespread work-from-home theme playing out.

There's a future in which almost all devices are connected to a network. What will stand between people and a connected world will be the companies, like Verizon, that provide connectivity. After all, the fanciest smartphone in the world isn't very useful without access to a mobile network. And this symbiotic relationship will only strengthen with 5G. Buffett is renowned for his ability to pick out great deals in the stock market. While I wouldn't say Verizon stock is super cheap, it's also not outrageously expensive. The P/CF ratio on Verizon stock is 5.6. That compares well to the three-year average of 6.8. And the P/S ratio is right in line with its five-year average. This stock looks highly reasonable in terms of its valuation.

All of Berkshire's buys are interesting. But I think the Verizon bet is the most interesting of all the stocks to watch. By the way, stay tuned for our next video where we'll be talking about all of Buffett's recent sells. And let us know in the comments what you think about these Buffett buys.

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Disclaimer: Please consult with a licensed investment professional before investing any of your money. Never invest in a security or idea featured on this channel unless you can afford to lose ...

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