S&P 500: Warren Buffett is betting his fortune on one of the 9 stocks he “can’t lose”

S&P 500: Warren Buffett is betting his fortune on one of the 9 stocks he "can't lose"

What do investors do when they get 5% without taking the risk? Look for low-risk S&P 500 stocks that they can make more of – a tall order that only a few can achieve.


Only nine stocks in the S&P 500, incl Exxon Foundation (Axon), Eli Lilly (LLY) and the largest personal position of Warren Buffett Berkshire Hathaway (I’m riding), achieved consistently in each of the past five years plus 2023 to date, according to Investor’s Business Daily analysis of data from S&P Global Market Intelligence and Marquette Smith.

And we are not talking about small gains. These consistently high stocks have posted an average gain in the past five years of 23.8%. That easily tops nearly 5% of the CDs you’d pay. That’s nearly double the S&P 500’s total average annual return of 12.1% over that period. says IFA.com. Keep in mind that even the S&P 500 has fallen twice over the past five years.

Only a small group of stocks meet this criterion. Less than 2% of the stocks in the S&P 500 make it, which goes to show just how rare these stocks are to keep rising.

However, safety is the dominant tactic for investors trying to protect themselves from Fed moves, says Jeffrey Roach, chief economist at LPL Financial. “The uncertainty of the post-pandemic economy and distortions caused by global lockdowns require vigilant and prudent policymakers,” he said. “Markets are likely to experience more volatility in the future due to these complexities.”

AXON: The “can’t-miss” inventory.

When it comes to S&P 500 can’t-miss stocks, Taser maker Axon Enterprise is at the top. Stocks of the maker of non-lethal tools for law enforcement are delivering results year after year. The stock has risen an average of 42.3% in the past five years and hasn’t fallen even once.

Even in August, when the S&P 500 was down nearly 4%, Axon shares were up more than 6%. Investors love the company’s somewhat predictable earnings growth. Axon’s adjusted earnings have risen every year in the past five years other than a 7% drop in 2022. Analysts believe the company’s earnings will rise 63% in 2023 and another 7.5% in 2024.

Eli Lilly, a company looking for a nerve-breaker, is another example of an S&P 500 stock that doesn’t want to go lower. In the past five years, it has gained an average of nearly 38% annually, while not once in a falling year. It really shines in the month of August, as the rest of the S&P 500 indexes are booming, gaining more than 22%.

The pharmaceutical company’s earnings are a model for continued future growth. Analysts say earnings are on track to rise nearly 20% this year. After that, Wall Street is looking for growth of 32% in 2024, 35% in 2025, and 23% in 2026.

Berkshire Hathaway is on the upswing non-stop

A study of performance in the past five years demonstrates this, in light of periods of ups and downs and external shocks. Buffett showed why he is the oracle of picking stocks.

In each of the past five years to date, shares of his company Berkshire Hathaway have risen an average of 10.9%. This is not only the highest return of these consistent gainers in the S&P 500, but the volatility is also lower. Surprisingly, Berkshire Hathaway’s five-year trial is only 0.87. Anything less than 1 means the stock is less risky than the S&P 500.

It’s no surprise, then, that Buffett is comfortable holding so much of his wealth in this one stock. He owns 15.1% of the outstanding shares of Berkshire Hathaway. This makes him the largest single owner with a stake of $116 billion. This is nearly 98% of his total wealth of $119 billion.

There’s no guarantee that S&P 500 stocks will continue their winning streak for five years. But there’s no denying that they’ve been unbeaten bets at least so far.

“You Can’t Lose” S&P 500 stocks have risen for five straight years

a company Code Average profit in the past five years section
Exxon Foundation (Axon) 46.7% industries
Eli Lilly (LLY) 35.0% health care
O’Reilly Motors (Orly) 29.9% Consumer Dictionary
Arthur J Gallagher (AJG) 24.8% Finance
Strips (CTS) 25.3% industries
WW Grainger (gw) 18.9% industries
gradual (PGR) 18.8% Finance
TGX (TGX) 16.3% Consumer Dictionary
Berkshire Hathaway (Barka) 10.0% Finance
Sources: Standard & Poor’s Global Market Intelligence, IBD
Follow Matt Krantz on Twitter @mattkrantz

Leave a Reply

Your email address will not be published. Required fields are marked *