Worried about the stock market? Follow Warren Buffett’s advice and do it

Billionaire investor Warren Buffett has seen downturns, recessions, market crashes and all kinds of adversity in the markets over the years. Investors worried about today’s markets should heed the advice of the Oracle of Omaha and simply bet on America. Even during the early stages of the pandemic, Buffett said “nothing can substantially stop America”. And true enough, many American companies persevered during the pandemic and continue to be great buys today.

Three US-based stocks that investors can buy to bet on America are maritime (SGEN -0.71%), T-Mobile USA (TMUS -1.26%)And Coke (KO -0.24%). These assets can diversify your portfolio and make solid long-term investments.

1. Seagen

Seagen, based in Washington state, may not be a typical Buffett stock because biotechnology is not an area it normally has exposure to in its portfolio. But Seagen’s pursuit of cancer drugs and its ability to bring more products to market are reasons why this would be a solid health title to bounce back on. Its success means that cancer patients have better care available.

Seagen is not a profitable business, suffering losses of $ 740 million in the past 12 months. But the reason the stock deserves an exception for value-oriented investors is that Seagen’s gross profit margin is an impressive 80% of revenue. As the company scales its operations, Seagen has a path to achieving profitability.

During the first half of the year, Seagen generated product sales of $ 814.8 million (+ 25% yoy), led by the lymphoma drug Adcetris, which brought in $ 382.9 million. The company has over 17 product pipelines that it is advancing this year that could fuel more growth for the business in the years to come.

Seagen is an excellent example of an American company that is innovating and that could get much bigger in the years to come.

2. T-Mobile USA

T-Mobile is a leading telecommunications company which is also headquartered in Washington. While it doesn’t provide a dividend like other telecom stocks, it is buying back stock, which can help result in a higher share price and lead to shareholder earnings. This month, he announced a stock buyback program that could see him repurchase up to $ 14 billion worth of shares within a year. And that’s likely to be just the beginning, as the company previously said it planned to buy back up to $ 60 billion in stock between 2023 and 2025.

The company says its 5G network now covers nearly the entire country, offering more coverage than its rivals. AT&T And Verizon Communications, combined. T-Mobile is coming out of its best second quarter results ever, posting record numbers for postpaid net account additions (380,000) and postpaid net customer additions (1.7 million) for the period ended June 30.

Although T-Mobile suffered a net loss in the second quarter, this was largely due to expenses related to the merger; merged with Sprint in 2020 and is currently working on decommissioning Sprint’s network. With at least $ 5.4 billion of synergies to come from the merger this year, T-Mobile’s business will be leaner and more profitable in the future and investing in the stock today could be a great move for long-term investors. .

3. Coca Cola

Soft drink giant Coca-Cola is a Buffett favorite and it’s easy to see why. The Georgia-based business has grown over the years and has adapted to changing consumer tastes. It now has 200 brands worldwide, which include coffee, juice, water and flavored alcoholic beverages, as well as sodas.

The company is a viable and safe option to invest in because its products are critical in homes and will be in demand no matter how the economy is doing. Despite difficult macroeconomic conditions, including supply chain problems and rising inflation, the company achieved solid results in the second quarter to July, where sales of $ 11.3 billion increased 12% year on year. over year.

Coca-Cola is a cash-rich company that generated $ 10.2 billion in free cash flow in the past 12 months, which is more than enough to cover dividend payments of $ 7.4 billion during that period. of time. Its yield of 3% is higher than S&P 500 average of 1.7% and can be an excellent source of long-term recurring income as this Dividend King has increased its payments for 60 consecutive years.

Whether you buy Coca-Cola stock for its dividend or its financial strength and resilience, this is an investment you can buy and forget for a long time.

David Jagielski has no position in any of the titles mentioned. The Motley Fool has locations and recommends Seagen Inc. The Motley Fool recommends T-Mobile US and Verizon Communications and recommends the following options: Long January 2024 calls from $ 47.50 on Coca-Cola. The Motley Fool has a disclosure policy.

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