Ford - seems okay, I like Ford. and I also like GM with their new CEO and freshly released from government control.
Wells Fargo - Buffett's top holding, good play on financial industry turnaround and rising interest rates and housing recovery, and good dividend yield. Can't go wrong with Wells Fargo.
US Bancorp - another one of Buffett's banks, similar to Wells Fargo.
That's some decent picks in my opinion, however the ideal stock depends on your particular situation. If you're a passive investor that would rather enter a position and check back years from now, then I'd say those are pretty much the right stocks for you. I have little worry about the future of Ford, Wells Fargo, and US Bank.
My primary concern with Coca-Cola is their ability to stay relevant. Less people are buying Coke's core product (cola) nowadays. Considering that Coke's branding is its most valuable asset, and everyone associates Coke with cola, I foresee the brand losing market share in the future.
If you're an active investor then you'd want to look for more undervalued stocks than those four. As long as there's irrational humans participating in the marketplace, there will always be irrationally undervalued companies out there. Seizing these opportunities, and frequently compounding gains, yields more profit than long-term investing.
I am looking to invest some $5,000 into the stock market and I have been doing some research on a couple of stocks. I was wondering if some of you could give me your opinions? The stocks I have done some research on are Coca-Cola (KO), Ford (F), Wells Fargo (WFC), and US Bank (USB). I like Ford because, in my opinion, it is undervalued and well run, but I also like Wells Fargo and US Bank for their dividends. Your opinions are appreciated, thank you!
