While 2023 has gotten off to a somewhat decent start, investors that were hammered last year are just now getting December and full-year statements, and they are not pretty. With the Nasdaq down 34% and the S&P 500 almost 20%, most investors had a miserable year. The first half of this year may not be so great either.
Earnings reports for the fourth quarter begin on Friday with the big banks stepping into the spotlight. The onslaught from the S&P 500 will start next week. Many across Wall Street are worried that the results for the quarter will be lousy and the forward guidance could be worse. That is why a good place to look for ideas may be Warren Buffett’s Berkshire Hathaway holdings.
If any investor has stood the test of time, it is Warren Buffett. For years the “Oracle of Omaha” has had a rock-star-like presence in the investing world. His annual Berkshire Hathaway shareholders meeting draws literally thousands of loyal fans who are investors. Known for his long buy-and-hold strategies and his massive portfolio of public and private holdings, Buffett remains one of the preeminent investors in the entire world.
We screened the Berkshire Hathaway portfolio for the six stocks with the highest dividend yields. In a world where total return may be the best plan of action for 2023, these top companies all look well positioned for what could be a difficult first half as the Federal Reserve winds down interest rate increases and earnings likely decline. While these stocks are Buy rated across Wall Street, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
The bank with no buildings may be poised to have a strong fourth quarter and 2023. Ally Financial Inc. (NYSE: ALLY) is a digital financial services company that provides various digital financial products and services to consumer, commercial and corporate customers primarily in the United States and Canada. It was formerly known as GMAC and changed its name in May 2010.
Its Automotive Finance Operations segment offers automotive financing services, including providing retail installment sales contracts, loans and operating leases, term loans to dealers, financing dealer floor plans and other lines of credit to dealers, warehouse lines to automotive retailers and fleet financing. It also provides financing services to companies and municipalities for the purchase or lease of vehicles and vehicle-remarketing services.
The Insurance Operations segment offers consumer finance protection and insurance products through the automotive dealer channel and commercial insurance products directly to dealers. This segment provides vehicle service and maintenance contracts and guaranteed asset protection products, and it underwrites commercial insurance coverages, which primarily insure dealers’ vehicle inventory.
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