5 Blue-Chip Stocks Warren Buffet Would Buy - GE, MSFT, GS, CAT And DIS
Could the economy and stock market be recovering faster than we expect?
In terms of the Economy, Fed chairman Ben S. Bernanke said the worst U.S. recession since the 1930s has technically ended and cited various signs of a recovery. Even President Obama has said that the embattled US economy is recovering spurred on by his $787 billion stimulus plan. From a stock market perspective, the most influential stock market guru and investor – Warren Buffet – has also said that he is once again bullish on equities and his company, Berkshire Hathaway, is heavily buying equities. Here's my idea's on which American blue chip stocks I think he would be buying (or adding to existing positions) based on intrinsic value, ability to leverage fast-growing and more rewarding international markets and a battered US dollar.
General Electric (GE) - U.S. multinationals that do business overseas directly benefit from a global recovery and weaker dollar thanks to higher profits reported in US dollar terms. General Electric (GE) is the biggest of the US conglomerates out there and stands to reap huge profits as global industrial and manufacturing demand soars from countries like China and India. GE also benefits from increased domestic infrastructure spending courtesy the $787 billion economic stimulus. Further, the large share price appreciation from historic lows this year reflects investors' growing confidence that the company's hefty GE Capital finance arm had weathered the financial crisis and that its large industrial businesses would benefit as the world economy begins to climb out of recession.
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