Hedge fund giants Dan Loeb and John Paulson recently bought shares of Verizon (NYSE:VZ) along with Warren Buffett's Berkshire Hathaway. Buffett made the biggest splash, buying 11 million shares worth over $500 million, likely because he sees value in the stock and a competitive moat for Verizon's business.
Verizon Wireless has a huge competitive moat in the U.S. wireless business, investing billions of dollars in spectrum and its network, something that's nearly impossible for competitors to replicate. Combined with AT&T (NYSE:T), the duopoly in U.S. wireless means high margins and little competition. Plus, Verizon's stock is a good value at 11 times trailing earnings and paying a 4.3% dividend yield.
In the video below, specialist Travis Hoium covers why he thinks Verizon is a great stock and why it makes a great investment in a basket with AT&T.
Are you ready to profit from this $14.4 trillion revolution?
Let's face it, every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC-maker Dell in the late 1980s, before the consumer computing boom. Or purchasing stock in e-commerce pioneer Amazon.com in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap "pure-play" and then watch as it grows in EXPLOSIVE lockstep with its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 TRILLION industry. Click here to get the full story in this eye-opening report.
Travis Hoium manages an account that owns shares of AT&T; and Verizon Communications. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.