The 3 Stocks Buffett is Buying This Month

When Warren Buffett buys a stock, it’s an almost sure sign that the company is a solid choice for an investment. Buffett didn’t become a billionaire by investing in high-risk stocks. The 3 stocks Buffett is buying this month are:

1.     Kinder Morgan (KMI)

Kinder Morgan has struggled for most of the year amid slumping oil prices. The energy giant claimed the status of the largest energy infrastructure company in North America, and the company controls the only pipeline between Alberta and the west Coast of Canada.

High debt is a concern for the company, but Brexit has almost solidified that interest rates will remain untouched in the short-term.

Kinder Morgan is up 4% over the last three months.

A major announcement yesterday that the company sold half of its Southern Natural Gas pipeline system to Southern Co. (SO) for $1.47 billion. The sale will help the company boost investments, according to the press release, as well as help alleviate debt.

2.     Flexion Therapeutics (FLXN)

Flexion is on the verge of a breakthrough with its knee pain drug Zilretta. The drug is aimed to help people suffering from knee pain caused by osteoarthritis. The company’s phase 3 results were positive and could be a basis for a new drug application, according to the FDA.

The company is expected to file the application for Zilretta soon.

Studies showed that Zilretta reduced pain by 50% over a 12-week study. Corticosteroids are used on 5 million patients per year to relieve knee pain. Zilretta aims to displace these steroids.

3.     Valeant Pharmaceuticals (VRX)

Valeant is the riskiest stock on the list, as the company’s stock plummeted 90% this year due to undisciplined use of leverage to buy companies. The unethical practice was made worse following price hikes by the company.

The company named Joseph Papa as new CEO and refreshed the company’s board of directors since.

Valeant will need to sell assets, mainly the companies that it purchased, strategically without selling too low to be able to reduce debt. The company has a long road ahead of them before regaining investor trust, but at such low prices, the stock has a lot of potential if Papa can turn around operations.

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Daniel Simmons