Bond guru Jeff Gundlach said recently he thinks the stock market could drop 20% to 25%, a fall that would leave the S&P 500 at around the 3,000 level (it is currently 3,946). High-profile investor Scott Minerd said last week that he expects stocks to fall another 20% by mid-October. Michael Burry of “Big Short” fame is also quite negative and has sold all the equity positions in his hedge fund. Morgan Stanley’s Mike Wilson noted that the market could have 17% to 27% downside risk.
One investor who always is long term with his stock positions is Warren Buffett. Longtime investors and Buffett mavens are familiar with his quote that his “favorite holding for an S&P 500 stock is forever.” So, it is not really surprising to report that for all of the success and stature of Berkshire Hathaway, most of its holdings are reasonably safe and many pay dividends.
We screened the portfolio looking for safe ideas that make sense now in these volatile times. Seven top stocks stood out, as they are rated Buy and pay very dependable dividends.
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