I don’t know when the stock market will recover. But history tells us that at some stage in the not-too-distant future it will, pushing share prices higher. With that in mind, here are three stocks I’d buy for my portfolio before the market rebounds.

This FTSE 100 stock looks cheap

One stock I certainly think has a lot of rebound potential is retail giant JD Sports Fashion (LSE: JD). Its share price has taken a huge hit this year on the back of recession fears and I expect it to bounce back at some stage.

The reason I’m bullish here is that in past economic downturns, spending on athletic footwear and leisurewear has been quite resilient. In the Global Financial Crisis of 2008/2009, for example, JD actually grew its revenues significantly.

Meanwhile, after the recent share price fall, the stock now looks very cheap. At present, the forward-looking P/E ratio here is under 10. That seems too low to my mind, given the company’s track record and growth prospects.

Of course, if consumers do rein-in their spending dramatically due to the cost-of-living crisis, JD could be impacted. However, with the stock trading at such a low valuation, I think the risk/reward profile is favourable for me.

A ‘no-brainer’

Another stock I’d buy before the market rebounds is US-listed payments giant Mastercard (NYSE: MA). Mastercard shares seem like a no-brainer to me right now. For starters, the company is a beneficiary of inflation. As prices rise, so do its revenues, as it takes a cut of every transaction it processes.

Secondly, if we do see a recession, consumers are likely to turn to credit cards. In this scenario, Mastercard is likely to benefit.

However, Mastercard isn’t the cheapest stock around. Currently, it has a P/E ratio of about 30 (25, using next year’s earnings forecast), which adds some risk. However, I’m comfortable with that valuation, given the fact that, in the decade ahead, trillions of transactions are set to shift from cash to card.

An under-the-radar growth stock

Finally, I’d also buy shares in Kainos (LSE: KNOS) today. It’s a FTSE 250 technology company that helps organisations with digital transformation. Like many other technology stocks, its share price has taken a big hit in 2022.

Kainos has now registered 12 consecutive years of growth, with revenue growth in its last financial year (ended 31 March) coming in at a very impressive 29%. And, looking ahead, I expect the company to continue growing as businesses realise the importance and benefits of digital transformation (digitalisation and automation can help offset inflation).

It’s worth noting that in the company’s recent full-year results, the contracted backlog was up 26% to £260m. Meanwhile, CEO Brendan Mooney said that demand for the company’s services had “never been higher”.

I’ll point out that if the technology sector continues to underperform, Kainos shares could produce disappointing returns. I’m willing to take on this risk though. With the stock currently trading on a P/E of around 27, I’d be comfortable buying it for my own portfolio today.

Today however, it’s a very different story. At the moment, markets are in meltdown mode due to a number of factors, including inflation, rising interest rates, a possible recession, the Russia-Ukraine crisis, supply chain issues, and Covid-19 in China. As a result, investing feels very hard. With the exception of the energy sector, there’s been nowhere to hide lately.

In this environment, finding stocks to buy is certainly challenging. There are very few companies that are not going to be impacted in some shape or form by one or more of the factors I mentioned above. However, some companies are better placed than others to weather the storm (and do well in the years ahead). With that in mind, here are two stocks I’d buy for my portfolio in the current environment.

This stock should be protected from inflation

First up is Mastercard (NYSE: MA), which is listed in the US. It operates one of the world’s largest electronic payment networks.

There are several reasons I view Mastercard as a top stock to buy right now. One is that the company has built-in inflation protection. When prices rise, it benefits since it takes a cut of every transaction.

Another is that it has low exposure to Russia and China. Recently, Mastercard’s CFO told investors that Russia only represented about 4% of net revenues in 2021. Meanwhile, the group has minimal operations in mainland China.

In addition to this, Mastercard is benefiting from the return of travel. Last month, it posted strong Q1 profits on the back of a surge in cross-border spending. And in the long term, it looks set to benefit from the shift from cash to card. This is a trend that has years to play out.

Of course, Mastercard isn’t perfect. If we see a recession and consumers cut back on spending, its revenues could be impacted.

Another risk is the valuation. It currently has a P/E ratio of around 31, which doesn’t leave a huge margin of safety.

Overall though, I see a lot of appeal in the stock today.

A top British stock to buy

Another stock I’d buy right now is Smith & Nephew (LSE: SN). It’s a healthcare company that specialises in joint replacement systems.

To my mind, Smith & Nephew is a relatively safe play in the current environment. One reason I say this is that healthcare spending usually holds up in a recession. If we do see an economic downturn, its sales are unlikely to plummet. It’s worth noting that after the pandemic, there’s a huge backlog of elective surgeries globally, so this should offset any recession-related weakness.

Another reason is that Russia only represents about 1% of group sales. So there’s minimal exposure here.

On the downside, revenue from China represented about 7% of total group revenue in 2021. So, the Covid-19 restrictions could have an impact on growth in the near term.

Supply chain challenges are another risk to consider. This has been an issue for the company during the pandemic.

All things considered however, I see the risk/reward here as attractive. With the stock trading at a reasonable P/E ratio of 18, I see it as a buy for me.

Here, I’m going to highlight three world-class companies I’d invest in today. I think these stocks could be great investments for me in the years ahead.

A British champion

Let’s start with FTSE 100 firm Diageo (LSE: DGE). It owns some of the biggest alcoholic beverage brands in the world, including Johnnie Walker and Tanqueray.

I’m bullish on DGE for a number of reasons. One is that the company looks well-placed to benefit from rising levels of wealth in the emerging markets in the years ahead. Diageo believes that by 2030, millions more emerging market consumers will be able to afford its brands.

Another is that the company is currently buying back a ton of its own shares. This should increase earnings per share which, in turn, should boost the share price over the long run.

ESG awareness is one risk to consider here. Analysts at Jefferies believe that alcohol following in tobacco’s footsteps might be the “single biggest risk” to the share prices of alcoholic beverage companies.

Overall though, I see a lot of investment appeal in Diageo. The forward-looking P/E ratio here is currently 24, which seems reasonable, to my mind.

A major financial player

The next stock I want to highlight is Mastercard (NYSE: MA), which is listed in the US. It operates one of the world’s largest payments networks, helping consumers, merchants, and financial institutions move money safely and efficiently.

Mastercard has attractive growth prospects in both the short term and the long term, to my mind. In the short term, the company should get a boost from the return of travel, as it generates a lot of revenue from cross-border transactions.

Meanwhile, in the long run, it looks set to benefit from the shift away from cash. Over the next decade, trillions of transactions are set to move from cash to card.

Disruption in the payments industry is the biggest risk here, in my view. This is certainly something to monitor. With the stock trading on a P/E of around 35 however, I’m convinced the overall risk/reward proposition is attractive.

A tech powerhouse

Finally, there’s Nvidia (NASDAQ: NVDA). It’s the world’s most valuable semiconductor company.

The semiconductor market is experiencing huge growth as the world becomes more digital, and this is reflected in Nvidia’s recent results. In the final quarter of 2021, revenue was up 53% year on year to $7.6bn. That’s amazing growth for a company of Nvidia’s size ($600bn).

Looking ahead, I think this tech giant is likely to get much bigger. Nvidia is active in a number of markets, including the video gaming, data centre, artificial intelligence, autonomous vehicle, and metaverse markets. All of these industries look set for strong growth in the next decade.

It’s worth pointing out that Nvidia is a higher-risk stock. It’s expensive (forward-looking P/E of about 43) and it has historically been volatile.

As a long-term investor with a high-risk tolerance I’m comfortable with the volatility here though. I think this is a stock to hold for the long run.

But there are two in Buffett’s portfolio, in particular, that strike me as ‘no-brainers’. I’m talking about payments companies Mastercard and Visa. Here’s why I’d follow Buffett into these stocks today.

Mastercard and Visa are both global electronic payment-processing companies that help consumers, merchants, financial institutions, and government entities move money safely and efficiently. You can think of them as the ‘plumbing’ of the world’s financial system. These companies don’t issue credit or debit cards directly. Instead, they provide networks that allow consumers and businesses to make transactions, and process all the transactions.

Huge growth potential

With the world moving away from cash and shifting to electronic payments, both Mastercard and Visa appear to have a huge amount of potential.

Both companies have registered strong revenue growth over the last decade as more payments have been made by card. However, the growth story here appears to have plenty of room to run. According to Allied Markets Research, the global credit card payments market is set to grow by 9% per year between 2021 and 2028. This means that trillions of transactions are set to shift from cash to card in the years ahead.

The ease and convenience of paying for goods and services electronically is expected to be one key growth driver. Adoption in the emerging markets, and the growth of the online shopping industry are also expected to drive growth.

Why I’d buy now

With so much long-term growth potential, one would expect these Buffett stocks to be popular. However, this isn’t the case. Recently, both stocks have been a little out of favour due to the fact that travel spending has been lower during the pandemic.

So, I think now is a great time for me to be buying because both stocks have reasonable valuations, in my view. At present, Mastercard trades at 38 times this year’s earnings while Visa trades at 33 times.

I don’t expect these stocks to trade at these levels for long. That’s because both companies are starting to see a rebound in travel spending. And this is boosting revenues significantly. Last week, for example, Mastercard posted quarterly revenue growth of 27% while Visa posted top-line growth of 24%.

Attractive risk/reward profiles

Of course, there are risks to consider here. One is further Covid-19 variants. If new variants emerge and the travel industry is hit again, these two companies will see their revenues dip.

Another is new payments technologies such as blockchain and crypto. In theory, crypto could make Mastercard and Visa obsolete.

Overall, however, I think these two Buffett stocks offer very attractive risk/reward propositions right now. In the near term, they look set to benefit from the return of travel. Meanwhile, in the long run, they look set to benefit from the shift to electronic payments.

Recently, I was looking through his portfolio for investment ideas. With that in mind, here’s a look at three Buffett stocks I’d be happy to buy for my Stocks and Shares ISA today.

Apple

Let’s start with Apple (NASDAQ: AAPL). This is Buffett’s largest holding.

Apple’s results for the year ended 30 September 2021, posted last week, showed that the company continues to grow at a healthy rate. For the year, total net sales came in at $365.8m, up from $274.5m a year earlier. To my mind, that’s a very impressive level of growth given the company’s size ($2.5trn).

Looking ahead, I see potential for further growth here. In the near term, many consumers are likely to upgrade their iPhones to 5G handsets. Meanwhile, in the long run, the company should benefit from its move into high-growth industries such as healthcare and payments.

There are risks here, of course. One is the fact that regulators are looking closely at App Store profits. Future regulatory action could slow growth.

All things considered, however, I think the stock has a lot of appeal right now. The forward-looking P/E ratio is about 26, which is a bargain, to my mind.

Mastercard

Another Buffett stock I like the look of right now is Mastercard (NYSE: MA). It’s one of the world’s largest payments companies.

Mastercard was significantly impacted by the coronavirus due to the fact a large chunk of its revenue comes from ‘cross-border’ transactions (that is, travel spending). With no one travelling last year, revenues took a big hit.

However, with travel now picking up, revenues are rising. In the third quarter of 2021, for example, net revenue came in at $5bn, up 32% year-on-year. Looking ahead, I think revenues are likely to keep rising. That’s because the world is rapidly moving away from cash and shifting towards electronic payments.

A risk it faces is competition. The financial technology industry is highly competitive and Mastercard faces competition from a wide range of companies including Visa, PayPal, and Affirm.

I’m backing the company to win in the long run, however. And with the stock trading at around 30 times next year’s earnings, I’m a buyer.

Amazon

Finally, I’d also buy Amazon (NASDAQ: AMZN) for my Stocks and Shares ISA.

Amazon shares have pulled back a little since the company posted its Q3 results last week. This is due to the fact that earnings were down ($6.12 per share versus $12.37 in Q3 2020) due to higher costs.

I’m not particularly concerned by this earnings weakness, however. Total net sales were up 15% to $110.8bn for the period which is pretty impressive for a company worth $1.7trn. Meanwhile, revenue in the company’s cloud computing division (which I see as the real growth driver here) was up 39% to $16.1bn. These figures lead me to believe that the long-term growth story is still intact.

It’s worth noting that Amazon has a high valuation. Currently, the stock has a forward-looking P/E ratio of about 53. This adds risk to the investment case.

I’m comfortable with this valuation, however. This company is an absolute powerhouse and I expect it to get a lot bigger in the years ahead.

A UK leader in international game development

Keywords Studios (LSE:KWS) is a video game services company. It provides AAA studios like Activision Blizzard and CD Projekt Red with additional talent in programming, art, player testing, and quality assurance, among other services, on a project-by-project basis.

Last year, the gaming industry thrived as lockdown restrictions saw many individuals turn to video games to pass the time. However, on the actual development side of things, there was a substantial amount of disruption. And as a consequence, many projects ended up being delayed, resulting in revenue growth for Keywords slowing down.

Despite this, the group did manage to achieve a respectable 14.7% increase in revenue for 2020. However, what now has me excited is the latest earnings report showing signs that these disruptions are no longer impeding progress. Gross income for the first six months of 2021 came in 37% higher while underlying profits jumped an enormous 80%.

This surging growth is what landed Keywords Studios on my best shares to buy list. However, there may be some trouble ahead. CEO Andrew Day recently retired, and a replacement has yet to be chosen. Changes in leadership can cause uncertainty. And if the new CEO doesn’t live up to expectations, then the stock may take a tumble.

A US leader in payment processing

Chances are, you’ve heard of a little company called Mastercard (NYSE:MA). The firm is one of the largest digital payment processors worldwide and has long had a fierce duopoly with Visa. 2020 was not a particularly good year. With non-essential stores being forced to close their doors, the volume of transactions flowing through its payment network fell considerably. And consequently, revenue actually dropped by 9%.

Now that these restrictions are over, transaction volumes are back on the rise again. But that’s not why the company is on my best shares to buy list. Recently, it formed a partnership with Verizon to take advantage of the latter’s 5G mobile networks. The objective is to use this technology to facilitate payments using smartphones and completely eliminate the need for a point-of-sale device. Needless to say, this technological disruption could be quite a lucrative opportunity. At least, I think so.

Unfortunately, the firm seems to be having a bit of trouble in India. Regulators aren’t too pleased that Mastercard didn’t keep Indian customer transaction data within the country. And consequently, it has been banned from issuing new cards. This is a severe issue in my mind, as India is one of the firm’s primary growth markets. Management has already begun negotiating to lift the ban. But as long as it remains in place, Visa continues to expand its market share relatively uncontested.

The best shares to buy

Despite the risks that these firms face, their growth prospects look promising in my eyes. So, I’m definitely considering adding more shares to my portfolio this month.

Here, I’m going to highlight three stocks I own and plan to hold for the next decade. Whatever the next 10 years brings, I’m confident these three companies will prosper.

A leader in AI

One of my top picks for the next decade is Alphabet (NASDAQ: GOOG). It owns Google, YouTube, DeepMind Technologies (its artificial intelligence (AI) subsidiary), and Waymo (its autonomous driving subsidiary).

One reason I see Alphabet as a top buy for the next 10 years is that the company is a major player in the artificial intelligence space. AI looks set to have a huge impact on the world in the next decade and is likely to disrupt many industries including healthcare, financial services, and retail. Alphabet – which has access to an enormous amount of data – is likely to be at the forefront of this disruption.

Another reason I like Alphabet for the long term is that the company has dominant positions in a number of growth industries. It should benefit from the growth of digital advertising, cloud computing, and autonomous vehicles.

Alphabet shares aren’t without risk, of course. One potential risk is regulatory action. Because Alphabet is so dominant, regulators want to break up the company.

I’m comfortable with the risks, however. I see this stock as a great long-term buy.

Moving into crypto 

Another stock I like for the next decade is Mastercard (NYSE: MA). It operates one of the world’s largest electronic payment networks.

The reason I’m bullish on Mastercard is that today, the bulk of retail transactions globally are still made in cash. This is set to change. Over the next decade, we are set to see a massive shift from cash to credit cards and electronic payments. Mastercard should benefit.

Recently, Mastercard has been acquiring small FinTech companies to future-proof itself. It has also been moving into the crypto space. These moves lead me to believe that the group is well positioned for long-term growth.

One risk to consider here is that Mastercard faces intense competition from the likes of Visa and PayPal. Its valuation is also quite high.

Overall, however, I think the long-term risk/reward proposition here is very attractive.

Resilient to change 

Finally, my third stock for the next decade is Diageo (LSE: DGE). It’s a leading alcoholic beverages company that owns a portfolio of premium brands.

What appeals to me about Diageo is that it’s fairly resilient to change. People have been drinking its brands, such as Johnnie Walker, Tanqueray, and Guinness, for decades. I’m pretty sure that in 10 years’ time, they’ll still be doing so.

Another thing I like about DGE from a long-term buy-and-hold perspective is that the company is set to benefit from the rise in wealth across emerging markets and the aspirational nature of consumers in these regions. Diageo believes that in the years ahead, hundreds of millions of new consumers will be able to afford its products.

One risk here is that attitudes towards alcohol could change. We’re seeing a little bit of this today, with younger consumers embracing healthier lifestyles.

Overall though, there’s a lot to like about Diageo from a long-term investing perspective, in my view.

The best approach, in my view, is to keep things simple and start by investing in some rock-solid companies that can be ‘core’ portfolio holdings. With that in mind, here’s a look at three stocks I’d buy if I was starting an investment portfolio today.

Apple

One stock that strikes me as a great investment for beginners is Apple (NASDAQ: AAPL). This is Warren’s Buffett’s largest stock holding.

There are a few reasons I see Apple as a good beginner’s stock. For starters, the company is easy to understand. Apple makes money from selling iPhones, iPads, computers, and other hardware. It also makes money from services such as iCloud, Apple Pay and Apple Music.

Apple has a great growth track record and looks set to continue growing in the years ahead. This year, analysts expect the company’s revenue to rise nearly 30%.

Finally, the stock’s valuation is attractive. Apple trades on a forward-looking price-to-earnings ratio of 28, which seems reasonable to me.

One thing the beginner version of me would have to be aware of is that because the stock is US-listed, UK investors face foreign exchange (FX) risk. If a UK investor like me buys Apple shares and the pound strengthens, the investment is going to be worth less.

Unilever

Another stock that I believe is ideal for beginners is Unilever (LSE: ULVR). It’s a leading consumer goods company that owns a wide range of well-known brands such as Dove, Domestos, and Cornetto.

One reason I see ULVR as a good beginner’s stock is that it’s quite ‘defensive’ (i.e. lower risk) in nature. People tend to buy Unilever’s products no matter what is happening in the economy. As a result, it is not as volatile as some other stocks.

Another thing to like about Unilever is that it’s a reliable dividend payer with an attractive yield (currently around 3.4%). So, there are two potential sources of return here.

One risk to consider is that consumers’ tastes and preferences are always evolving. So, there’s no guarantee that Unilever’s brands will be as popular in the future as they have been in the past.

All things considered, I think the stock has an attractive risk/reward profile that would be good for the younger me.

Mastercard

Finally, I think Mastercard (NYSE: MA) is another top stock for beginners. It operates one of the largest payment systems in the world.

One thing I like about Mastercard is that, like Apple and Unilever, it’s an easy stock to understand. Everytime someone uses a Mastercard credit or debit card, it generates revenue.

Another thing I like about Mastercard is the long-term growth potential. Over the next decade, trillions of transactions are set to shift from cash to cards and electronic payments. Mastercard looks set to benefit.

One risk I’d consider here is that the valuation is quite high. Mastercard has a forward-looking P/E ratio of about 40. This doesn’t leave much ‘margin of safety.’ If future growth is disappointing, the stock could take a hit. It’s also listed in the US meaning there’s FX risk for UK investors. But there’s a lot to like about Mastercard, in my view. I see it as a great beginner’s stock.

I’m still seeing buying opportunities however. I think plenty of stocks have the potential to climb higher. With that in mind, here are three I’d buy now.

Warren Buffett’s top stock

One stock that strikes me as a buy right now is Apple (NASDAQ: AAPL), which is Warren Buffett’s top holding. While the market has climbed this year, Apple’s share price has fallen. I think this weakness has created a buying opportunity. Currently, Apple’s P/E ratio is under 25. That seems very reasonable to me.

I expect Apple to have a strong second half of the year. New iPhones are expected later in the year, which should boost sales. Meanwhile, with many people now working from home on a regular basis, demand for iPads and Macs should remain robust. Last quarter, these two products saw year-on-year growth of 79% and 70% respectively.

But there are risks to the investment case. One is growing regulatory scrutiny. In April, the European Commission said that Apple has abused its dominant position in music distribution.

Overall however, I think the risk/reward proposition here is attractive. It’s worth noting that Wedbush analyst Dan Ives has a price target of $185 – 46% above the current share price.

A reopening play

Another Buffett-owned stock I’d buy right now is Mastercard (NYSE: MA). It’s one of the largest payments companies in the world.

Mastercard is a classic reopening stock. As the world reopens in the months ahead, transactions are going to increase significantly. Mastercard – which profits every time someone uses one of its cards – should benefit. It should also benefit from the return of travel, as cross-border transactions make a large contribution to total revenues.

But Mastercard isn’t just a reopening play. In the long run, it should benefit from the shift from cash to electronic payments. It should also be a beneficiary of the growth of e-commerce.

This stock does have a relatively high valuation. Currently, it’s trading at 35 times next year’s earnings. This valuation adds risk. If growth slows, or the company experiences setbacks, the shares could fall.

I believe MA deserves a premium valuation however. The company is very profitable and it has significant growth potential.

A top UK growth stock 

Finally, turning to the UK market, I’d buy shares in JD Sports Fashion (LSE: JD). It’s a leading retailer of athletic footwear and athleisure clothing that operates globally.

After Covid-19 lockdowns, there are a lot of cashed-up consumers around the world. This is particularly true in the US, where many people have received stimulus cheques. I expect a lot of this cash to flow into discretionary goods, such as trainers and clothing. JD should benefit. This year, analysts expect sales growth of 17%.

This isn’t the only reason I’m bullish on JD Sports Fashion shares. In my view, the company is well-placed to benefit from a number of powerful clothing trends, including the ‘casualisation’ of fashion, and the increasing demand for loungewear.

One risk here is the threat from larger retailers such as Amazon. Another risk is that brands such as Nike and Adidas are increasingly focusing on selling directly to consumers.

I’m comfortable with these risks though. I see plenty of upside from here in the long run.

Here, I’m going to highlight three shares I’d buy right now. I think all three have considerable growth potential in the current environment.

A top UK tech stock

One UK stock I think looks attractive at the beginning of May is Gamma Communications (LSE: GAMA). It’s a leading provider of unified communication solutions.

The reason I’m bullish on Gamma is that I expect the ‘hybrid’ working model – where people work from home a few days per week – to become far more common. Gamma should benefit from this trend. Its communication solutions, which enable employees to work remotely, are well-suited to organisations that have a flexible working setup.

Recent results for 2020, were very impressive. For the year, revenue was up 20%. Meanwhile, adjusted earnings per share were up 26%. Looking ahead, the company said it’s “positive about the outlook for the group in 2021 and beyond.”

There are risks to the investment case, of course. One is the threat of competition – this is a competitive industry. Overall however, I think this growth stock has a lot of appeal. The stock’s P/E ratio of 31 seems fair to me, given the growth potential.

A game-changing acquisition

Another stock I’d buy right now is Boohoo (LSE: BOO). The leading online fashion retailer now owns a whole portfolio of big brands. These include PrettyLittleThing, Debenhams, NastyGal, and Coast.

Boohoo has generated unbelievable growth over the last five years (revenue growth of nearly 800%) and I think the company’s recent acquisition of Debenhams is going to boost growth further. Debenhams is a well-known brand in the UK and its website gets approximately 300m hits per year. On the Debenhams website there’s now lots of Boohoo products (and other Boohoo brands) for sale.

This stock can be volatile at times. So it’s not suited to risk averse investors. I’m comfortable with the volatility though. With the stock trading on a forward-looking P/E of about 31, I see it as a ‘buy’.

A Warren Buffett-owned stock

Finally, I continue to like Mastercard (NYSE: MA), which is listed in the US. I named this stock as a top ‘reopening’ play back in March and, since then, it has performed well. I think this Warren Buffett-owned stock has the potential to keep rising though.

I like Mastercard for a number of reasons. Firstly, I think it should benefit as the global economy continues to reopen and travel picks up. Last week, the company said it’s started the year with “good momentum,” delivering positive net revenue growth in Q1. It also said it’s encouraged by the return of US spending levels to pre-pandemic trends.

Secondly, the long-term growth potential here is significant. Over the next decade, we’re going to see trillions of transactions shift from cash to credit cards and electronic payments. Mastercard looks well-placed to benefit from this trend.

This stock is not cheap. Currently, the forward-looking P/E ratio is about 48. This adds risk to the investment case. I’m comfortable with this valuation however, as the company is very profitable and has a lot of growth potential.