Invest in These Top Buffett-Owned Stocks Using Your Tax Refund
Investors and Tax Refunds
Investors can find Buffett-owned stocks without leaving the consumer sector. Another tax day has come and gone, and refunds are always a focus of this tax season. Through early April, the average amount refunded to taxpayers was $3,011.
- This involves both bad news and good news for investors.
- The bad news is that those taxpayers made an interest-free loan to the government.
- However, the sting of that realization may be helped by the good news that taxpayers finally have their money back, likely giving them some cash to invest.
Amazon
Amazon (NASDAQ: AMZN) is a stock that Buffett recognized late. He and his team waited until the first quarter of 2019 to invest in the e-commerce giant even though it has been trading since 1997.
Key Points:
- Amazon's shares are trading at $184 per share,
- From a valuation perspective, Amazon's price-to-earnings ratio (P/E) of 63 may sound rich, but it's notably lower than the five-year average of 91.
Floor & Decor
Regional to national growth stories propelled stocks like Home Depot in the previous century, and that trend appears set to bolster a smaller Home Depot competitor called Floor & Decor Holdings (NYSE: FND).
Key Points:
- Admittedly, the sluggish economy affected its near-term performance.
- That placed upward pressure on the P/E ratio, which currently stands at 49.
- Additionally, hard flooring has the type of "forever" demand that attracts Buffett and can boost the stock over time.
Should you invest $1,000 in Amazon right now?
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