2 of the best stocks to buy now with £500

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The stock market has been moving higher of late, making offers harder to find. As a result, I think Blizzard Action and Berkshire Hathaway are two of the best stocks to buy right now.

The higher price makes the stock less attractive to investors like me. That means I have to pay more for the same shares I bought last week and last month.

It makes it harder to find interesting opportunities. But Activision Blizzard and Berkshire Hathaway are stocks I’m happy to buy for my portfolio today.

Berkshire Hathaway

Let’s start with Berkshire Hathaway. Share prices have risen across the board and Berkshire shares are 11% higher than last month.

That means the stock is less attractive than it was a month ago – I’d rather buy the stock for $276 than $306. But Berkshire is still one of my best stocks to buy right now.

Companies are facing a number of challenges today, most notably inflation and a possible recession. But I think Berkshire’s strengths will keep the business going well over time.

Unlike other insurance companies, Berkshire invests its float in common stock, not bonds. This allows it to earn greater returns than its competitors, which allows it to buy more shares.

Why don’t other insurance companies do this? Investing in stocks rather than bonds requires substantial cash to cover possible underwriting losses. Berkshire has this, but other insurance companies don’t.

In other words, Berkshire’s biggest advantage is its balance sheet. This allows it to be conservative in its insurance writing and to invest at a higher rate of return than its competitors.

Blizzard Action

Activision Blizzard is also one of my best stocks to buy right now. In a volatile market, I think stocks offer a level of predictability that is hard to find nowadays.

Since the company is the subject of a takeover offer, the investment thesis is not entirely about its earnings. Microsoft is trying to buy Activision in its entirety for $95 per share.

Today, Activision’s stock price is $80. This implies a profit of more than 18% if the deal is successful.

However, there is a risk that the deal may not be completed. Otherwise, I think the stock is likely to fall to around $67, which means a drop of around 16%.

I think the deal will most likely be reached. That means I think the stock is attractive based on risk vs. reward.

I’m not the only one who thinks so. Yesterday’s 13F filing revealed that Warren Buffett had bought the stock as well.

Share to buy now

The stock market looks uncertain to me at the moment. Rising stock prices make stocks riskier, so I looked for opportunities that were as easy as possible.

That makes Activision Blizzard and Berkshire Hathaway two of the best stocks for me to buy today. Activision’s future is relatively clear one way or another, and Berkshire has a lasting power.

So, with £500 to invest today, I would buy both shares.



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