10 Stocks For Midyear 2020

Microsoft (MSFT): Shares of the technology company have outperformed amid the coronavirus crisis, helped by the strength of its cloud computing business. With companies working remotely, there’s never been a more important moment for the cloud.

Amazon.com (AMZN): The e-commerce behemoth, recommended in June 2019, then dropped for 2020, returns to Kass’ lineup. Amazon’s shares have hit a succession of new all-time highs since the pandemic began. Not only is Amazon dominant in e-commerce, and not only was it able to greatly expand its footprint in grocery deliveries with much of the world under stay-at-home orders, but Amazon also has benefited from a surge in demand for its massive cloud-computing unit. Berkshire Hathaway, Kass notes, has a significant stake in Amazon.

Facebook (FB): The social media giant whose stock has recently been battered as some 400 brands launch a boycott over its failure to adequately address hate speech is a newcomer to Kass’ stocks list. The professor notes that the social giant, despite the boycott, nonetheless generates a lot of cash flow and requires little capital to run.

Costco (COST): Retailers don’t often make the watch list, but Costco is an exception, Kass says. The members-only warehouse chain is well managed and has steady growth, even without those iconic half-sheet cakes. Berkshire holds a stake in the buy-in-bulk mainstay, and Berkshire vice chairman Charlie Munger sits on its board of directors.

Charter Communications (CHTR): The cable and broadband company has seen a boom in business amid lockdown orders, as at-home customers dramatically increase their TV viewing, streaming, and computing. The company has hired thousands of additional billing and sales agents, using virtual job interviews to get the job done. That’s good management, Kass says. Berkshire owns a stake.

Micron Technology (MU): The Idaho-based memory chip maker reported higher-than-expected revenue in its recent earnings report and delivered upbeat guidance, as stay-at-home workers and students boost demand for its computer and data center chips. The company is an excellent growth opportunity, says Kass, with work-from-home and study-from-home likely with us for some time.

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