If you were wondering what Buffett's second rule is, it's to remember the first rule. If you are willing to incorporate some above-average risk tolerance into your portfolio, read on for a look at two Buffett-backed stocks that have the potential to deliver explosive wins for risk-tolerant investors. With the company valued at more than $51 billion and trading at 25 times expected forward sales, Snowflake (NYSE: SNOW) is the most growth-dependent stock in the Berkshire Hathaway portfolio by some metrics.
The average brokerage recommendation (ABR) for Snowflake Inc. (SNOW) is equivalent to a Buy. The overly optimistic recommendations of Wall Street analysts make the effectiveness of this highly sought-after metric questionable. So, is it worth buying the stock?
Technology stocks were the cool kid in school a couple of years ago, but the fall from grace has been brutal in this bear market. Admittedly, 2022 was rough, but that doesn't mean that growth and technology stocks won't eventually enjoy their time in the sun again. Now is a great time to be accumulating shares; a quality stock that's fallen 50% means that your money is buying twice as many shares as a year ago -- that is the type of bargain hunting that can make you very wealthy in the long run.