Investors often look to Warren Buffett’s purchases when trying to pick the best stocks to buy.
And with good reason: Buffett’s conglomerate, Berkshire Hathaway (NYSE: BRK.A, BRK.B),
has an impressive track record and got off to a stellar start this year. Berkshire Hathaway gained 8.7% in January, beating the Standard & Poor’s 500 Index’s 6% rise and the Dow Jones Industrial Average’s 7% increase.
It’s also a good sign when Buffett’s picks include companies with heavy insider buying, given insiders buy because they expect shares to rise.
That’s why MarketWatch and Insider Monkey just took a look at Buffett’s 38 holdings and compared his purchases to stocks that have had sustainable insider buying in the past 90 days.
And who knows better than insiders? These folks are privy to the most current information on their companies’ prospects, and research shows stock prices rise more after insiders’ net purchases than after net sales.
MarketWatch and Insider Monkey came up with the following five stocks to buy now, based on Buffett’s holdings and insider buying.