With a growing wireless business and one of the best yields on the Dow, Verizon continues to be a favorite for dividend investors Berkshire Hathaway’s (BRK.A) last 13-F filing shows that Warren Buffett has taken a stake in Verizon Communications (VZ) worth over $500 million. He owns nearly 11 million shares of the largest postpaid wireless communications company, or nearly 1% of the company’s outstanding float. Warren Buffett has mastered the art of investing in companies that enjoy a unique strategic advantage, generate steady cash flows, employ good management and trade at relatively cheap valuations. A nod from Buffett usually leads to investors scrambling to buy the same stock. Here’s a look at why he thinks Verizon is a good bet:
Buffett is very right about the company in terms of a solid stock and that would be a great place to take a look in considering the overturn. It is your risk but also having that sort of stake does sound appealing.
Without question Verizon seems like a sure fire stock to bet on. Margins on wireless services are huge and they're already top dog. When your competition is AT&T with an equally bad, if not worse, reputation then I'm not sure there's much to worry about. AT&T and T-Mobile together may have put up more of a fight, but we know that got axed. Logically, comes across as solid.
I trust Buffet's judgement; although, it may be a risk for tiny investors like me. He has the strongest track record there is. Yet, I'll bet he bought over $400 million dollars worth. Wouldn't it be funny if Verizon and AT&T merged!
I will kill for Warren Buffet money. My goal in life is to get as close to him as possible (financially). I believe in aiming high, if I fall short so be it. with that said, this investment is decent, but nothing great considering you guys are a little to bite on this one it sounds like.
Several other big hedge funds have recently bought this one as well. Of course they're not always right.
11 million shares sounds awesome right about now! I believe Warren Buffet is not going to let go of those shares if they are worth $500 million. I am impressed though that Warren is able have shares with a face value that high. I wonder how much are those dividends worth? I also wonder how often are those dividends paid? I know dividends could be paid monthly, yearly, and quarterly.
I usually think stocks that have a good reputation and have been around for some time and you know based on their structure will continue to be around, are a good company for new investors to begin with, as well as experienced investors who are looking for as much stability as one could hope to get in the market. Verizon does have good dividends and can be a safe company to deal with. Think of how many people use Verizon for their services. Almost all of my friends use this company, and even though they are a little more expensive for certain services, people like the name for phones. Overall, I think following what Buffett says with this company is a smart move.
