Two Buffett Stocks Worth Buying in August—If You’re Not Afraid of Long-Term Pain

by

Warren Buffett’s the sort of guy who buys the whole damn store. Not content with picking at the pieces, he owns the shop and the building it sits in. Berkshire Hathaway, his business playground, is a giant machine designed to scoop up anything that’ll turn a profit, be it stocks or entire companies. If you’re smart enough to keep up, he’s got a couple of plays this August that’ll make your wallet sweat in a good way. Maybe. Depends on how you like your money, really.

1. Chevron: The Fog’s Starting to Lift

Chevron, that behemoth of energy, is a bit like an old man stumbling through fog with a cigar in his mouth. The company’s been on a rough road lately, with acquisitions falling apart and its Venezuelan business getting tangled in politics like a bad night at the poker table. But the fog’s starting to clear. Chevron’s gotten its house in order, its divorce from bad deals is nearly complete, and its stock’s starting to look like a bet worth taking.

Here’s the deal: Chevron’s a big player in the energy business—oil, gas, you name it. From pumping the stuff out of the ground to refining it into something useful, it covers all the bases. And that’s a pretty slick way to dodge the bullet when the price of oil takes a nosedive. The stock might have gotten battered around the last few years, but now that things are steadying, it’s back on the upswing. The dividend’s no joke either—4.3%, a full point above Exxon’s 3.5%. And if you want a bit of security, it’s been raising that dividend every damn year for 38 years. Think about that. That’s not luck; that’s a machine running smooth.

If you like dividends and a steady hand guiding the ship, then following Buffett’s lead with Chevron’s probably the smart play. Just don’t expect to get rich overnight. Buffett doesn’t rush; he waits, and when you wait, sometimes the results come slow, but they come solid.

Loading widget...

2. Midstream’s Where Buffett Puts His Chips

Now, if you’re really paying attention, you’d notice that Buffett’s got a thing for midstream companies. What’s midstream? You could say it’s the unsung hero of the energy world, the guy moving the goods—pipelines and infrastructure. If you’re wondering why Buffett’s into it, I’ll tell you. It’s because midstream companies make their money off the infrastructure, not the stuff moving through it. They get paid whether the price of oil’s $50 a barrel or $150. Reliable cash flow, that’s the name of the game.

But here’s the kicker: You can’t buy directly into the midstream investments that Buffett’s made. That’s the catch. What you can do is invest in a big player in the space like Enterprise Products Partners. This company’s a beast in the pipeline game, and they’re paying a fat 6.9% yield on their distributions. That’s the kind of payout that keeps income investors salivating. But don’t let that big, shiny number fool you. This isn’t just a yield play. The company’s got a solid balance sheet, rated investment grade, and its cash flow is covering the payout by a healthy 1.7 times. That means there’s room for adversity without a distribution cut in sight.

And with $5.6 billion in capital investments lined up, Enterprise is betting on the future. Buffett might’ve put his chips in midstream, and if you’re looking for a way to mimic his game, Enterprise is the closest you’ll get to a sure thing. It’s the kind of company that just keeps churning out cash, and in this world, that’s something to respect.

Loading widget...

Patience Pays, Like Buffett Knows

Here’s the thing about Buffett. He’s not in it for the short haul. If you’re looking for a quick buck, you’re on the wrong street. Buffett buys and holds, and that’s why he wins. If you’re going to follow his lead and buy into Chevron or Enterprise, you’d better be prepared to hold tight for the long ride. You don’t invest like him for a quick fix; you invest to see the compound interest stack up over time. And trust me, that’s a whole lot more satisfying than any quick win you’ll find.

So, take a deep breath. Hold onto those stocks for the long haul, and remember: patience isn’t just a virtue, it’s a strategy.

📉

Read More

2025-08-03 10:39