Warren Buffett Stocks That Are Holding Up Well During This Sell-Off

These 3 value stocks held by Warren Buffett and Charlie Munger in their Berkshire Hathaway
BRK.A
portfolio are holding up better than the big name, big tech stocks in the NASDAQ
NDAQ
-100. Brand names with a long history and selling stuff that consumers either really like or really need.

While the $NDX has fallen from 16600 to about 13000, Coca Cola has rallied from 52 to 66, Bristol Meyers is up from 52 to 78 and Kraft Heinz moved up from 32.5o to 44. When the big tech index sold off big last week, these 3 old-school names dropped so little that it’s worthy of note.

Here’s how the NASDAQ-100 point-and-figure chart looks:

The main thing here is the extent of the downward-ness. Just from late last year, that’s a drop from 16750 to 13050, a percentage loss of 22% in about 4 months time.

Now take a look at the price charts for these 3 Oracles of Omaha long-term picks:

Coca Cola

The long-term uptrend from the 2008 lows remains in place. With a market capitalization of $285 billion and price-earnings ratio on the high side (for this market) at 28, people are still buying product.

Investors like Warren and Charlie are banking a 2.58% dividend. It is said that Buffett still drinks the stuff — mainly sugar and caffeine — which can’t be all that healthy at age 91 but maybe he’s just showing confidence in his investment.

Bristol Meyers Squibb

From a low of 53 late last year to the recent new high of 78, your money would have been better off here than in Apple
AAPL
, Microsof
MSFT
t or Google. The big drug manufacturer has a price-earnings ratio in line with the market as a whole, 24.

Earnings this year are up by 128% while the past 5-year EPS growth rate sits at 3.30%. Bristol Myers Squibb pays a 2.86% dividend. The New York, New York-base biopharmaceutical company makes Plavix among many other types of drugs.

Kraft Heinz

Buffett himself helped with the merger of the 2 companies a few years ago and it’s taken time to work out. You can see that the combination hit a low of 18.50 during the March, 2020 pandemic lows. Kraft Heinz this year hit 44 before backing off a bit. Obviously, packaged cheese products and ketchup are easy, cheap sources of food for those looking to save money rather than eat out.

It’s not unusual that this company’s stock is outperforming computer and social media favorites if we’re headed into recessionary times. A move above that red downtrend line would be a significant longer-term change of direction for Kraft Heinz.

No guarantees exist that these stocks will continue to out perform the former tech leaders but right now it’s worth considering how much these value stocks have such better looking charts than growth stocks.

Find more analysis and charts on my website right here:

CheapbargainstocksCheap Bargain Stocks – Find The Most Undervalued Stocks On Wall Street

Not investment advice. For educational purposes only.