Let’s cut to the chase when it comes to picking stocks for a retirement portfolio. There’s nothing wrong with sorting through individual names for desirable attributes such as reliable dividends, low volatility and secure business models. But it’s quicker, easier and perhaps wiser for retirees to first narrow down the field. Taking the lead of the greatest value investor of all time is a good way to start.
Under Warren Buffett, shares in Berkshire Hathaway (symbol: BRK.A, BRK.B ) have delivered the kind of outperformance that would put a longtime shareholder on easy street. From 1965, when Buffett took control of the company, through the end of 2016, Berkshire stock has returned 20.8% a year, on average. Standard & Poor’s 500-stock index, by comparison, had an average annual return of 9.7%. It’s no wonder Berkshire ranks as one of the greatest stocks of all time.
Berkshire is more than just its portfolio of stocks, of course. It owns scores of subsidiaries as well. But Buffett’s investing prowess can’t be denied. If you’re looking for great stocks to own in retirement, piggyback on some of Buffett’s best ideas. After all, his preferred holding period is “forever.” Here are eight of the best Buffett stocks for retirement.
(Shares prices and other data are as of Sept. 25, 2017. Berkshire holdings are based on regulatory filings and CNBC’s Berkshire Hathaway Portfolio Tracker. Stocks are listed in alphabetical order.)
Source: Kiplinger
8 Best Buffett Stocks for Retirement