Warren Buffett may not have wanted Donald Trump in the White House, but he’s sure taking advantage of the opportunities Trump will provide for investors. Despite Buffett’s public support of Hillary Clinton, Buffett stocks are as well-positioned for the Trump presidency as any others.
Buffett may have been disappointed on Election Day. Fortunately, Berkshire Hathaway Inc. (NYSE:BRK.A, NYSE:BRK.B) shareholders are drowning their election sorrows in cash. November was BRK.B’s best month performance-wise in six years. Buffett himself recently admitted to buying stocks hand-over-fist since Trump’s victory.
In a CNBC interview, Buffett said he has bought $12 billion in common stock in the three months following the election. That’s certainly some aggressive buying from a man who only bought $5.2 billion in stocks in nine months heading into the election.
Investors won’t know exactly what Buffett stocks the Oracle of Omaha has been snatching up until Berkshire files its fourth-quarter 13F form in about a week. However, here are three Buffett stocks that are likely candidates.
Buffett Stocks to Buy in the Trump Era: Goldman Sachs (GS)
If Buffett wasn’t adding to his $2.6 billion stake in Goldman Sachs Group Inc (NYSE:GS), he sure missed a major opportunity. GS stock has soared 32.9% since Election Day. GS also reported a huge fourth-quarter earnings beat, driven mostly by fixed income trading.
Goldman may be in the best position to capitalize on the Trump administration of all the Buffett stocks out there. Trump is doing just about everything a Goldman investor could ever dream of to make life easier. For starters, Trump has brought in at least five former Goldman executives to join his cabinet.
In addition, GS stock should benefit on several levels from Trump’s proposed corporate tax breaks and repatriation holiday. Trump’s pro-business policy attitude should encourage deal making, which is great news for Goldman. In 2016, Goldman completed $971.6 billion in M&A deals, more than any other investment bank.
Finally, last week Trump followed through on his pledge to eliminate many of the banking regulations in the Dodd-Frank Act, legislation which has made life miserable for banks ever since the financial crisis. GS stock looks like it may be on the fast track to profits under Trump. Buffett certainly may have doubled down on his bet since Election Day.
Buffett Stocks to Buy in the Trump Era: Wells Fargo (WFC)
Wells Fargo & Co (NYSE:WFC) is…
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