Hedge fund giants Dan Loeb and John Paulson recently bought shares of Verizon (VZ -0.73%) 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 (T -1.19%), 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.
