3 Great Stocks for Retiring Boomers

I have concerns about 2012, when the demographic Gray Wave will begin swelling
to tsunami proportions. Retirees tend, on balance, to take money out of the
stock market. But I think theres still time to make generous profits with safe,
strong, entrenched franchises like these: Berkshire Hathaway Last month, I gave
you my estimate of Berkshire Hathaways (NYSE: BRK.B ) intrinsic value, $110 per
Class B share. Anytime you can buy Warren Buffetts expertise at a 30% discount,
you should. However, Im also intrigued by what might happen to Berkshire after
Buffett (who turns 81 on August 30) is gone. Quite possibly, new management
would start paying a dividend or even more radically might break the company
into two pieces, an operating conglomerate and a passive investment fund. Either
or both of these moves could close the discount rather quickly. JPMorgan Most
bank stocks dont interest me right now, but JPMorgan (NYSE: JPM ) is a happy
exception. Earnings for 2011 likely will set an all-time high, topping last
years figure by at least 20%. Not too shabby for one of the marquee players in
an industry many investors long ago gave up for dead! JPM also is making a
concerted effort to return cash to shareholders. In March, the bank raised its
dividend fivefold and announced a $15 billion stock buyback program. At a
current yield of 2.5%, the shares already boast a fatter dividend than the
typical large-cap stock and I expect another sizable increase in late 2011 or
early 2012. Assuming a modest P/E of just 10, the stock could deliver a 30% or
greater total return within a year. Total Next to gold, oil is one of the worlds
most reliable inflation hedges a scarce tangible asset, and an essential raw
material to boot. If you believe, as I do, that all the funny money sloshing
around eventually will trigger a surge in retail prices, you need to own some
oil wells. And the best way to do it is with a dirt-cheap stock like Total
(NYSE: TOT ). The worlds fifth-largest oil company by market value, Paris-based
Total is trading at less than seven times estimated 2011 earnings, versus an
average multiple of 9.5 from 2003 to 2007. Thus, if the stock were merely to
return to its former average valuation, you would pocket a gain of 35% or more.
In addition, TOT pays a dividend of nearly 6%, one of the richest yields among
the oil majors. Starting in September, the company is switching to a quarterly
(rather than semiannual) dividend schedule an extra attraction for retirees and
other income investors.