By Laura Sanchez
Investing.com – At a time of widespread volatility in financial markets, Credit Suisse (SIX:) recommends stocks with a feature popularized by tycoon Warren Buffett for risk-taking investors.
The bank hopes that companies with “economic moats” can help investors protect their portfolios from growing uncertainty on the stock markets.
The ‘economic moats’ is a term made known by Buffett that refers to the ability of a company to maintain competitive advantages over its competitors, such as a better business model, and with a greater capacity to innovate, with a strong pricing power.
“The most important thing is to try to find a business with a long lasting moat around it … to protect an excellent economic castle with an honest lord in charge of the castle,” Buffett told a 1995 meeting, he recalls. CNBC.
This medium has echoed the actions recommended by Credit Suisse, among which Air Products and Chemicals (NYSE:) stand out, whose shares could rise more than 20%, since it has “one of the strongest business models”. The bank gives a price target of $295 for the company.
Hershey (NYSE:) is another of Credit Suisse’s bets, with growth possibilities above 5%, due to “its notable position in the confectionery market.” The bank gives a price target of $250 for the company.
McDonald’s (NYSE:) is “well positioned” to grow regardless of the macro environment due to its value proposition, according to Credit Suisse. The fast-food company is also recovering in foreign markets, the bank notes.
Other interesting companies would be Microsoft Corporation (NASDAQ:), Nextera Energy (NYSE:) and Autodesk (NASDAQ:).