U.S. News & World Report: 10 Consumer Stocks
I am quoted twice (General Motors and Johnson & Johnson) in a U.S. News & World Report article recommending 10 consumer stocks:
General Motors (GM). By all accounts, GM has cruised away from its government bailout in a stronger position, with higher-than-expected earnings for the fourth quarter of 2014 and improved management. “Although GM is still in the process of settling claims relating to defective ignition switches, its outlook is bright, since there’s a pent-up demand for new cars,” says David Kass, clinical associate professor of finance at the University of Maryland’s Robert H. Smith School of Business. “The average age of cars on the road now exceeds the historical average, so they’re likely to be replaced by new vehicles in the near future.”
Johnson & Johnson (JNJ). It turns out this company didn’t need a Band-Aid approach after several major recalls of over-the-counter products. “JNJ is a very well-managed and well-diversified company in pharmaceuticals and consumer products, including over-the-counter drugs and health care items,” Kass says, adding that in December 2012, CEO Alex Gorsky came in “and has turned this company around. Its outlook is very bright, and it currently pays a 3 percent dividend.”
The entire article is available at:
(Note: Berkshire Hathaway has investments in both GM and JNJ.)
