Warren Buffett: Buy Stocks in This Sector Right Now!

Ambrose O'Callaghan
·3 min read
stock data

Warren Buffett has made some surprising moves in the face of the COVID-19 pandemic. Earlier this week, I’d discussed his decision to reduce his stake in Barrick Gold, one of the largest gold producers in the world. Today, I want to target a sector that Warren Buffett made a big play on in the third quarter: healthcare. This is a space that I’d suggested investors get in on when 2020 first kicked off. The COVID-19 pandemic has put a well-deserved spotlight on this explosive sector.

Warren Buffett: Why he’s pouring into healthcare

Interestingly, Warren Buffett has not been a big proponent of Big Pharma stocks in previous years. Like his flip on gold, he switched gears in the third quarter. Berkshire Hathaway added to its stake in top pharmaceuticals like Merck, Pfizer, and Bristol Myers Squibb. The Oracle of Omaha is looking to win big from the vaccine race currently underway.

Canada does not have a horse in the lucrative vaccine race, but it does have some very promising stocks in the healthcare sector.

Two healthcare dividend stocks I love right now

Savaria Corporation (TSX:SIS) is a Laval-based company that designs, engineers, and manufactures products for personal mobility in Canada and around the world. Earlier this year, Grand View Research projected that the global personal mobility market would achieve a CAGR of 6.5% from 2020 through 2027.

It will be fuelled by the growth of aging populations across the developed world. Shares of Savaria have climbed 3.3% so far this year.

In Q3 2020, the company saw adjusted EBITDA increase 8.1% year-over-year to $16.9 million. Adjusted net earnings per share rose 6.2% to $0.17. Warren Buffett is also a proponent of value investing. Savaria stock offers a solid price-to-earnings ratio of 25 and a price-to-book value of 2.5. It boasts a monthly dividend of $0.04 per share, representing a 3.4% yield.

Andlauer Healthcare (TSX:AND) is a Vaughan-based company that provides a platform of customized third-party logistics (3PL) and specialized transportation solutions for the healthcare sector in Canada. This stock offers exposure to healthcare and the exciting supply chain management tech space. Andlauer stock has increased 94% in 2020.

The company released its third quarter 2020 results on November 10. Revenue rose 7% year-over-year to $75.8 million and operating income increased 16.3% to $13.2 million. In the year-to-date period, Andlauer has achieved EBITDA growth of 7.8% to $56.9 million.

Emulate Warren Buffett and snag this healthcare-focused REIT

Warren Buffett does not own a lot of REITs other than STORE Capital. However, NorthWest Healthcare Properties REIT (TSX:NWH.UN) is a healthcare-focused REIT that checks some Buffett-approved boxes. It provides shareholders exposure to top healthcare real estate around the world. Shares of Northwest Healthcare have increased 7.4% in 2020 so far.

In Q3 2020, its net operating income climbed 3.4% to $72.2 million. Portfolio occupancy remained stable at 97.2%. It proved to be a great defensive stock to own during this crisis. Shares of Northwest Healthcare possess an attractive P/E ratio of 14 and a P/B value of 1.4. Best of all, it offers a monthly dividend of $0.067 per share. That represents a very strong 6.5% yield.

The post Warren Buffett: Buy Stocks in This Sector Right Now! appeared first on The Motley Fool Canada.

More reading

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Andlauer Healthcare Group Inc. and Bristol Myers Squibb. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS and Savaria.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2020

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • Taylor Swift's name is popping up on Wall Street earnings calls thanks to her massive impact on the US economy

    "Over the past year, we've all witnessed the creative genius and sheer power of a true cultural phenomenon Taylor Swift," said Disney CEO Bob Iger.

  • Maude Lewis letters to Ontario WW2 veteran sell for thousands of dollars

    Six special letters from the 1960s between two unlikely pen pals have sold at auction for thousands of dollars. They were sent to a Second World War veteran-turned-artist in Ontario by acclaimed Nova Scotia folk artist Maud Lewis. Heidi Petracek reports on what led to the long distance connection and where the letters are now.

  • Southern Alberta stakeholders sign historic water-sharing agreement

    Here in Canada, you might think our climate and numerous lakes would protect us from severe water shortages. But a rapidly-heating planet means warmer winters and drastically smaller snowpacks — which makes the prospect of serious and prolonged drought a reality. Now, stakeholders in Alberta have signed a series of historic agreements about how water will be shared. Heather Yourex-West explains.

  • Dak Prescott says he's not 'necessarily' gunning to be highest-paid QB in NFL

    Joe Burrow leads all NFL quarterbacks at $55 million per year.

  • New records detail emails sent to Superintendent Horne’s Empower Hotline

    The hotline for parents to sound the alarm on public school concerns marked one-year last month, however after months of waiting for the records of emails and phone calls, ABC15 just obtained the first week of emails sent to the Empower Hotline.

  • Nelly Korda 1 shot back through 36 holes at Chevron Championship as she chases 5th straight victory

    THE WOODLANDS, Texas (AP) — Nelly Korda, seeking to tie an LPGA Tour record with her fifth straight win, shot a 3-under 69 on Friday in the second round of the Chevron Championship, leaving her one shot behind leaders Atthaya Thitikul and Jin Hee Im in the year’s first major. Korda began the day two shots off the lead after opening with a 68 at Carlton Woods. She got out to a tough start Friday, making a double bogey on the first hole before making birdies on two of the next three. She finished

  • Brayan Bello allows 1 hit in 6 innings as Red Sox breeze past Pirates 8-1

    PITTSBURGH (AP) — Brayan Bello allowed one hit in six innings, Rob Refsnyder hit his first home run of the season and the Boston Red Sox breezed past the struggling Pittsburgh Pirates 8-1 on Friday night. Bello (3-1) struck out seven and walked two. The lone hit he surrendered was a leadoff double by Jack Suwinski in the bottom of the second. Bello retired the last 11 batters he faced as the Red Sox bounced back from a dismal homestand by handing the Pirates their fourth straight loss. Refsnyder

  • Phoenix police commander filed EEOC sex discrimination charge

    The Phoenix Police Department faces a federal employment discrimination investigation after complaints by one of the highest-ranking women in the department claims that her supervisor violated her civil rights and the city failed to take timely action.

  • Residents praise law officials connecting south Monterey County murders

    Many in south Monterey County are reacting to major developments announced Thursday by the Monterey County Sheriff’s Office surrounding two shootings that left six people dead and seven injured.

  • Alzheimer's Association celebrates progress

    ABC 10News Reporter Madison Weil emceed at an Alzheimer's Association event and shared her own personal reason for her attendance.

  • Elly De La Cruz slugs 3-run HR and Nick Lodolo works 6 strong innings as Reds beat Angels 7-1

    CINCINNATI (AP) — Elly De La Cruz hit a three-run homer, Nick Lodolo pitched 6 1/3 innings of one-run ball for his second quality start since coming off the injured list and the Cincinnati Reds snapped a three-game skid with a 7-1 win over the Los Angeles Angels on Friday night. Lodolo allowed a run and seven hits while striking out six. The 26-year-old left-hander exited in the seventh with one out and runners on second and third. Fernando Cruz came on and struck out Jo Adell and Zach Neto to e

  • Man suspected of shooting at CHP officer in south Sacramento arrested in Fresno County

    The shooting led to a standoff Wednesday, but the suspect was not found in the Sacramento County home.

  • Ethan Hawke and Josh Charles of Dead Poets Society star in Taylor Swift video

    The US pop superstar surprised her fans on Friday by releasing a secret ‘double album’ instalment.

  • Shelter staff training examined at coroner's inquest in Whitehorse

    Warning: This story contains distressing details.Witnesses who testified on the second week of a coroner's inquest into the deaths of four women at an emergency shelter in Whitehorse were questioned about whether shelter staff were properly trained to respond to medical situations, including overdoses or caring for intoxicated guests. Questions from lawyers came after footage from the video surveillance taken on the night Darla Skookum died was screened at the inquest.The footage revealed that s

  • Carls targeted at nature preserve lot in Jamul

    A brazen vehicle break-in was caught on camera in the busy parking lot of a nature preserve in East County.

  • Road closures planned in Metro Vancouver this weekend

    It's expected to be a busy weekend in the Metro Vancouver area as several events, including Surrey's Vaisakhi parade and the Vancouver Sun Run, are scheduled to take place. The Surrey Vaisakhi Parade will take to the streets Saturday, complete with performers, floats, live music and vendors. Organizers say the event is the largest Vaisakhi parade in the world, and is expected to draw up to 500,000 people. The parade route begins at the Gurdwara Sahib Dasmesh Darbar, located at 12885 85 Ave., and

  • Incidents targeting Jewish, Muslim people

    Abc 10News Reporter Perla Shaheen spoke with local leaders who says there has been an increase of anti-semitism following the Israel-Hamas War.

  • Justin Verlander allows 2 runs over 6 innings in season debut for Astros

    WASHINGTON (AP) — Justin Verlander allowed two runs and four his over six innings in the three-time Cy Young Award winner's season debut for the Houston Astros against the Washington Nationals on Friday night. The 41-year-old right-hander, who began the season on the injured list because of right should inflammation, struck out four and walked none, throwing 59 of 78 pitches for strikes. Verlander averaged 94.3 mph with 35 four-seam fastballs and induced five groundouts. The nine-time All-Star r

  • Denver weather: 1 to 4 inches of snow possible, heavier totals in mountains by Saturday

    The calendar may say spring, but it looks and feels more like winter across the Front Range. Heavy snow sticks around overnight into Saturday morning.

  • Deadline to apply for FEMA relief

    ABC 10News Anchor Wale Aliyu spoke with a flood victim who applied for FEMA relief. The victim says he met all of the deadlines with FEMA, but the money he received barely moved the needle. When he made an appeal for his personal belongings, it was not approved.