Conventional wisdom suggests that investors should find safe stocks to buy. Penny stocks and potential “triple-baggers” might be more exciting and a big win might provide a better story, but experts will tell you the smart play is to benefit from compounding returns in safe, stable stocks.
That general strategy is similar to that followed by Warren Buffett with Berkshire Hathaway Inc. (NYSE:BRK.A, NYSE:BRK.B), for instance. Buffett looks for “forever stocks,” with a portfolio that ranges from key parts of the industrial supply chain to consumer brands like The Coca-Cola Co (NYSE:KO) and Dairy Queen. Investors following that type of strategy — again, so the conventional wisdom goes — should benefit from lower volatility and larger returns over time.
Of course, there are a couple of problems with this advice.
The first is that choosing safe stocks to buy is much harder than Buffett himself has made it look. General Motors Company (NYSE:GM) was considered a “widows and orphans” stock for decades — and it went bankrupt in 2008. Investors in 1985 could have argued Dow Jones component companies Eastman Kodak Company (NYSE:KODK), GM, and Sears Holdings Corp (NASDAQ:SHLD) were among the safest plays in the market.
Hot Safest Stocks To Invest In Right Now: The Blackstone Group L.P.(BX)
- [By Jordan Wathen]
Shares ofGramercy Property Trust (NYSE:GPT) had soared by more than 15% as of 12:03 p.m. EDT Monday on news that the real estate investment trust will be acquired byBlackstone Group’s(NYSE:BX) Blackstone Real Estate Partners VIII L.P fund in an all-cash transaction.
- [By ]
The market hasn’t had its needed purge yet says Byron Wien, who is Vice Chairman in the Private Wealth Solutions of Blackstone Group (BX) . “We will retest the February lows [in the markets],” Wien, 86, said on a recent call with media. Wien continues to believe the S&P 500 will rally back after testing the lows, charting a path to 3,000 by year end.
- [By Lisa Levin] Gainers
Twin Disc, Incorporated (NASDAQ: TWIN) shares surged 24.34 percent to close at $28.86 following Q3 earnings.
Bioblast Pharma Ltd. (NASDAQ: ORPN) rose 21.89 percent to close at $2.45.
Evolus, Inc. (NASDAQ: EOLS) gained 20.19 percent to close at $8.75. Evolus named David Moatazedi as new CEO.
VivoPower International PLC (NASDAQ: VVPR) rose 18.56 percent to close at $3.13 on Monday after falling 39.86 percent on Friday.
CEL-SCI Corporation (NYSE: CVM) gained 17.09 percent to close at $2.74.
athenahealth, Inc. (NASDAQ: ATHN) shares jumped 16.39 percent to close at $146.75 on Monday after Elliott Management confirmed a $160 per share cash offer for athenahealth.
Gramercy Property Trust (NYSE: GPT) rose 15.45 percent to close at $27.50 after the company agreed to be acquired by Blackstone Group L.P. (NYSE: BX) for $27.50 per share.
National CineMedia, Inc. (NASDAQ: NCMI) surged 15.23 percent to close at $6.43 after the company posted upbeat quarterly profit.
Turtle Beach Corporation (NASDAQ: HEAR) rose 14.53 percent to close at $7.33
CohBar, Inc. (NASDAQ: CWBR) gained 14.36 percent to close at $6.29.
Tetraphase Pharmaceuticals, Inc. (NASDAQ: TTPH) gained 12.69 percent to close at $3.64.
Gannett Co., Inc. (NYSE: GCI) gained 12.27 percent to close at $10.89 following Q1 results.
CVR Refining, LP (NYSE: CVRR) shares climbed 9.8 percent to close at $19.05.
Illumina, Inc. (NASDAQ: ILMN) rose 4.93 percent to close at $256.89. Barclays upgraded Illumina from Equal-Weight to Overweight.
Cloudera, Inc. (NYSE: CLDR) surged 3.92 percent to close at $15.63. Craig-Hallum initiated coverage on Cloudera with a Buy rating.
- [By ]
In the Lightning Round, Cramer was bullish on Ingersoll-Rand (IR) , The Blackstone Group (BX) , Thermo Fisher Scientific (TMO) , FMC Corp (FMC) , Nike (NKE) , Zebra Technologies (ZBRA) and Aimmune Therapeutics (AIMT) .
- [By Lisa Levin]
Gramercy Property Trust (NYSE: GPT) shares were also up, gaining 16 percent to $27.52 after the company agreed to be acquired by Blackstone Group L.P. (NYSE: BX) for $27.50 per share.
- [By ]
The Blackstone Group (BX) : “I think this is a terrific buy.”
Xilinx (XLNX) : “I think it’s time to start getting back into NVIDIA (NVDA) .”
Hot Safest Stocks To Invest In Right Now: Lyon William Homes(WLH)
- [By Max Byerly]
William Lyon Homes (NYSE:WLH) traded down 7.4% on Tuesday . The company traded as low as $24.95 and last traded at $25.04. 774,270 shares were traded during trading, an increase of 81% from the average session volume of 426,618 shares. The stock had previously closed at $27.05.
Hot Safest Stocks To Invest In Right Now: Arc Wireless Solutions Inc.(ARCW)
- [By Ethan Ryder]
Watts Water Technologies (NYSE: WTS) and ARC Group WorldWide (NASDAQ:ARCW) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Hot Safest Stocks To Invest In Right Now: Luxoft Holding, Inc.(LXFT)
- [By Logan Wallace]
Barings LLC lifted its stake in shares of Luxoft Holding Inc (NYSE:LXFT) by 125.1% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 348,398 shares of the software maker’s stock after buying an additional 193,657 shares during the quarter. Barings LLC owned about 1.03% of Luxoft worth $14,267,000 as of its most recent filing with the Securities & Exchange Commission.