Secure wealth building with value stocks can be the need of the hour. Growth stocks and the broader market are currently recovering. Relying on a more defensive, value-based approach can seem appealing.
Today let’s look at three value stocks that will give you a good night’s sleep in these volatile times. Secure wealth accumulation with a buy-and-hold approach should be possible in the long run without too much volatility.
Fresenius: Ensure asset accumulation with the value share
Today is the beginning Fresenius-Shares (WKN: 578560), which for me has a strong value component. A defensive business model, cheap valuation and dividend aristocrat status all indicate a lot of quality. Foolish investors probably know that the stock does not even have a price-to-earnings ratio of 12 with a dividend of 2.7%. When the time comes, there will be a solid return.
Today, however, we will turn our focus. Namely in relation to how much downside potential can still be accommodated in the worst-case scenario. With the mentioned price-earnings ratio, there is quite an attractive safety margin. Seriously, how far should the stock fall? Down to a price-to-earnings ratio of 8 maybe? Even if it did, the stock would have a maximum pull potential of 33%. But there is now moderate growth, which should reduce the downside of cheap valuation.
If you’re looking for a value stock with quality and Dividend Aristocrat status, look no further than this moderately growing Dividend Aristocrat. I sense a relatively safe long-term accumulation of wealth with a buy-and-hold approach. When in doubt, it’s about the profit margin. Or the dividend yields through a moderate, growing passive income.
Verizon Communications: Warren Buffett no longer on board?
There are rumors that Warren Buffett Verizon Communications (WKN: 868402) could have sold. That would be possible. But still, foolish investors should ask: What attractive benefits can this value stock still offer for safe wealth building?
We see a price-to-earnings ratio of around 10 with a dividend of 5%. Simultaneous moderate growth and prospect of moderately growing yields. In addition, management is talking about share buybacks. There are operationally new possibilities through 5G technology. This may also enable a small growth at group level.
Verizon Communications is therefore a very valuable stock with a defensive business model. The operational base is not there to get rich quick. But to refuse a safe asset accumulation with solid returns.
Value Share Berkshire Hathaway: Safe, Guided Wealth Creation!
The proportion of Berkshire Hathaway (NASDAQ: AMD) is now a value stock again. If we also want to use a key figure here: The share certificates are currently priced at a ratio between price and book value of around 1.4. This is a level where Warren Buffett has recently completed his stock repurchases.
But what exactly is it that makes building wealth so secure? For me, it is the controlled component. Warren Buffett and his partner Charlie Munger have created a timeless core. Which in turn can continue in Ted and Todd’s public domain at any time. Greg Abel, on the other hand, takes the lead. This is a team that ensures continuity.
There may be volatility. Honestly, my guess is that if Warren Buffett or Charlie Munger leaves the conglomerate, the stock price will fall. Nevertheless, the business-oriented core remains. The portfolio is ready to deliver solid returns and growing free cash flows today and tomorrow.
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Vincent owns shares in Berkshire Hathaway, Fresenius and Verizon Communications. The Motley Fool owns shares in and recommends Berkshire Hathaway (B shares) and recommends Fresenius and Verizon and the following options: short January 2023 $ 200 put on Berkshire Hathaway (B shares), short January 2023 $ 265 call on Berkshire Hathaway (B shares) ) and Long January 2023 $ 200 Call on Berkshire Hathaway (B shares).