Warren Buffett Thinks Investors Are "Gambling" Right Now. Here are 2 Stocks That Should Be Safe Bets.
Johnson & Johnson and Merck are healthcare giants with dependable returns that weather economic downturns well.
Overview
There are concerns that we may be in an economic bubble, with stocks as expensive as they were just before the dot-com bubble burst. Warren Buffett criticized what he sees as too much short-term speculation, saying at the May meeting of Berkshire Hathaway that markets have become "a church with a casino attached."
Long-term investors seek out stocks that can generate consistent cash flows regardless of what's going on with the economy. Two that stand out today in the healthcare sector are Johnson & Johnson (NYSE: JNJ) and Merck (NYSE: MRK). Both are built to retain capital, maintain pricing power, and sustain shareholder returns across bull and bear cycles alike.
Details
Merck was founded more than 130 years ago and has grown with an emphasis on research and development (R&D), smart acquisitions, and disciplined financial management. Johnson & Johnson, founded 140 years ago, has a similarly long tradition of doing all the right things. Why I like each of these stocks:
Source
Originally published at www.fool.com.