GO
Loading...

What Stocks To Buy--Ideas From JP Morgan

It takes a strong stomach (and balance sheet) to be a stock buyer in this market.

Warren Buffett tells us today he's buying for his personal account. "Be greedy when others are fearful" he writes in the New York Times today. "And most certainly, fear is now widespread, gripping even seasoned investors," he writes.

He says all the bad news now creates opportunities for investors willing to look five, 10 or 20 years into the future. "To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation’s many sound companies make no sense," he writes.

Well, what then to buy? Buffett doesn't say what he's buying. J.P. Morgan analysts today though came up with some names, in a note titled "The Franchise 16 - Stocks to own beyond the market turmoil." They see these as core investments for the next 12 to 18 months.

The analysts said they picked their list based on attributes like low leverage, dividend yield, high net income margins and high free cash yields. J.P. Morgan analysts also looked for companies that they believe will outperform in a weakening global economy. Those companies would be able to maintain pricing power, market dominance, and perform counter-cyclically.

Here's their list:

Disclosure: J.P. Morgan could act as an advisor or have other business relationships with any of the above mentioned companies.

3M
Baxter International
Colgate
CA Inc.
Devon Energy
General Mills
Gilead Sciences
Google
Hewlett-Packard
McDonald's Corp
Merck and Co
Monsanto
Nucor
Philip Morris
Union Pacific
Visa

Symbol
Price
 
Change
%Change
532874
---
TGEAX
---
QRE
---
DVN
---
GYLD
---
534388
---
GOOGL
---
HPQ
---
MCD
---
MMM
---
MON
---
MRK
---
NUE
---
PM
---
UNP
---
V
---

Questions? Comments? marketinsider@cnbc.com

  • Patti Domm

    Patti Domm is CNBC Executive Editor, News, responsible for news coverage of the markets and economy.

  • A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

  • CNBC Senior Commodities Correspondent and Personal Finance Correspondent

  • JeeYeon Park is a writer for CNBC.com. Follow her on Twitter: @JeeYeonParkCNBC

  • Rick Santelli joined CNBC Business News as an on-air editor in 1999, reporting live from the floor of the Chicago Board of Trade.

  • Senior Producer at CNBC's Breaking News Desk.