The Motley Fool's Weekly Editors' Picks
Fools were out and about this past week in an investing world jam-packed with actions and ideas. Here are three articles you might find useful as you decide how to invest your money.
5 Stocks Buffett Gives the Green Light in His Annual LetterInvesting acumen spills from Warren Buffett's annual Berkshire Hathaway (NYS: BRK.B) shareholder letter like rain from a pitched roof. Fool analyst Matt Koppenheffer put his cup out and caught five stocks that Buffett gave a green light in this year's letter.
Matt wasn't surprised that Buffett put IBM and Wells Fargo on a list of four "exceptional" companies in which Berkshire has large ownership interests.
But Matt was surprised that Buffett had "such glowing things" to say about the battered Bank of America (NYS: BAC) and its CEO, Brian Moynihan. In 2011, Berkshire made a $5 billion preferred-share investment in B of A, giving it a 6% yield and 10-year warrants to buy 700 million shares of B of A at $7.14.
According to Buffett, Moynihan is "nurturing a huge and attractive underlying business that will endure long after today's problems are forgotten."
Read the article for more about what Buffett's letter signaled to Matt.
Biosimilars: Big Pharma's Next Big Thing?First, say "yay!" The FDA recently released guidelines for the approval of so-called biosimilars, generic versions of biotech medications that have previously been free from such competition. Fool contributor Amanda Alix reported that the worldwide biosimilar market is predicted to be between $2 billion and $2.5 billion by 2015 and several companies stand to benefit.
And now it's time to say "but wait." Amanda pointed out that "since the guidelines were created with the input of the biotech industry, the path to biosimilar production is strewn with roadblocks that will likely take deep pockets to clear away."
So which companies have a leg up? Teva Pharmaceutical (NAS: TEVA) , which has been working in the European market, where biosimilars have been available for some time, has experience on its side, Amanda noted.
"For manufacturers with a bit less heft, partnerships are the order of the day," Amanda wrote. Amgen (NAS: AMGN) , for instance, has joined with Watson Pharmaceuticals to produce biologically acceptable generic versions of several cancer drugs.
Read the article for more of Amanda's insights on biosimilars and the companies that stand to benefit from their rise.
3 Dividends Your Kids Will Thank You ForWhy do you invest? If your answer involves passing a solid portfolio along to your children, then you'll want to pay attention to what Fool analyst Austin Smith had to say about his search for three dividend stocks that future generations will thank you for.
"Since we're investing for our kids here, I only wanted the best of the best. That meant heading straight to the Dividend Aristocrat list," Austin wrote.
Coca-Cola and its 3% dividend made the cut. "The beverage titan is a case study in economic moats, and that moat is only getting wider," Austin wrote. "With a portfolio of 3,500 beverages, it's guaranteed to make something for every palette." Coca-Cola is still seeing volume growth, and super-investor Buffett expects its earnings to continue to increase.
Read the article to see the other two stocks that made Austin's list.
At the time this article was published Fool online editor Kris Eddy owns no shares of any stocks mentioned in this article.The Motley Fool owns shares of Berkshire Hathaway, Bank of America, Coca-Cola, Wells Fargo, IBM, and Teva Pharmaceutical and has created a covered strangle position in Wells Fargo.Motley Fool newsletter serviceshave recommended buying shares of Coca-Cola, Berkshire Hathaway, and Teva Pharmaceutical. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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