It’s not easy to find a billionaire investor admired by the global investor community for over half a century. But the Oracle of Omaha, Warren Buffett, is one such great investor whose fan base is continuously increasing with his age. In Berkshire Hathaway’s latest annual shareholders letter, Buffett expressed his optimism about the economy. With this, he is apparently hinting towards a sharp economic recovery after last year’s global pandemic crisis. And a good economic recovery could take stocks higher in 2021.
Buffett is popular for his foresightedness and his ability to recognize emerging market trends before others do. This approach helps him to invest in undervalued companies before their stocks start a long-term rally. But it doesn’t mean that the 90-year-old legendary investor doesn’t make mistakes. And when he does, he never shies away from accepting his mistakes and adjusting his investing style accordingly. In 2020, Berkshire offloaded all its airline stocks after the COVID-19 pandemic wreaked havoc on the airline business. Initially, many experts criticized Buffett’s move to exit the airline industry too early. However, the seemingly unending troubles of the aviation industry are proving him right again now.
It’s always wise to adjust your investment portfolio according to changing market dynamics. In recent years, Buffett has gradually started accepting the dominance of the tech industry. He has recently invested in tech giants like Apple and Amazon.
If you want to make extraordinary returns in the market, then you should always keep your eyes open for emerging trends. Such emerging trends could be the next big thing that could help long-term investors make millions from the stock market — if they invest at the right time. For example, the surging demand for electric and autonomous cars has attracted the attention of most large auto and tech companies lately. Experts believe electric vehicles (EVs) and smart mobility companies will rule the market in the 2020s.
Buffett seemingly realized the potential of this emerging trend much earlier. His investment firm invested in the Chinese EV company BYD back in 2008. Even now, it’s not too late to buy shares of the companies that are set to gain from the upcoming electric and autonomous cars revolution.
BlackBerry (TSX:BB)(NYSE:BB) could be a great company to invest in if you’re looking to benefit from the fast-growing EV and smart mobility demand. This Canadian enterprise software company already has a big presence in the automotive segment due to its popular QNX real-time operating system. Most large automakers across the globe use QNX-based platforms in their vehicles. BlackBerry is now focusing on expanding its automotive offerings. It’s developing an integrated data platform — in partnership with Amazon Web services. The platform could immensely enhance the functionality of futuristic EVs and self-driving cars.
Earlier this year, BlackBerry also expanded its partnership with the Chinese tech giant Baidu. This extended partnership would allow BlackBerry’s QNX Neutrino platform to be used in mass-produced EVs in China.
Its stable software licensing income, investments in artificial intelligence, and focus on smart mobility make BlackBerry a great company to invest in right now — if you want to benefit from the next big market trend. Its stock jumped by 113% in January. The stock has already started rising again in March after a 28% dip in February. This could be the right time to buy its stock cheap before it’s too late.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. David Gardner owns shares of Amazon, Apple, and Baidu. Tom Gardner owns shares of Baidu. The Motley Fool owns shares of and recommends Amazon, Apple, Baidu, and Berkshire Hathaway (B shares). The Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), long January 2022 $1920 calls on Amazon, short January 2022 $1940 calls on Amazon, and long January 2023 $200 calls on Berkshire Hathaway (B shares). Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.
The post Warren Buffett: This 1 Next BIG THING Could Make You a Millionaire in 2021 appeared first on The Motley Fool Canada.
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