Warren Buffett is a legendary investor who has made billions through his value investing strategy. He is known for buying undervalued stocks and holding them for the long term. While his investment philosophy is widely followed, his actual stock picks are closely watched by investors.
One of the stocks Buffett has been buying in recent years is Occidental Petroleum, a popular buy for Berkshire Hathaway. However, the author of this article argues that Berkshire Hathaway itself is the stock that Buffett is most likely to keep buying.
Since mid-July 2018, Berkshire’s board of directors has allowed share repurchases as long as the company has at least $30 billion in combined cash, cash equivalents, and U.S. Treasuries on its balance sheet and Warren Buffett and Charlie Munger agree that shares are trading below their intrinsic value. Between mid-July 2018 and Dec. 31, 2022, Buffett and Munger repurchased more than $66 billion worth of their company’s stock.
Berkshire Hathaway’s strong balance sheet and steady cash flows make it an attractive investment for Buffett. In addition, the company’s diverse portfolio of businesses, including insurance, energy, railroads, and consumer goods, also provides a hedge against market volatility.
Despite the company’s size, Buffett has found attractive opportunities to invest in. In 2022, Berkshire Hathaway made an $8.6 billion investment in Verizon and bought shares in Kroger, Marsh & McLennan, and General Motors.
Buffett’s investment strategy is based on finding undervalued stocks and holding them for the long term. This approach has served him well over the years, and Berkshire Hathaway’s track record of outperforming the market is a testament to his success.
While Occidental Petroleum has been a popular buy for Berkshire Hathaway, the author of this article believes that the company’s stock is the one that is all but guaranteed to be on Buffett’s buy list every single quarter until a new bull market emerges, fInvesting in Berkshire Hathaway could be a smart move for investors looking to follow in Buffett’s footsteps.
Despite his focus on Berkshire Hathaway, Buffett has also recently made some exciting moves in the stock market. One of the stocks he has been buying is Verizon Communications, which he previously owned in 2014. The telecommunications company has a strong dividend yield of 4.5%, making it an attractive investment for income-seeking investors like Buffett. Buffett has also taken a liking to General Motors, which has been transforming to become a more electric vehicle-focused company. As one of the largest automakers in the world, General Motors has the potential to benefit from the growing demand for electric vehicles, which is expected to increase in the coming years.
Buffett’s investment strategy is based on the principle of value investing, which involves identifying undervalued stocks with the potential for long-term growth. He believes in buying companies with solid fundamentals and competitive advantage and holding them for the long term. This approach has helped him build a fortune and become one of the most successful investors ever.
In conclusion, while Berkshire Hathaway is likely to remain at the forefront of Buffett’s investment strategy, his recent purchases of Verizon and General Motors show that he is still looking for attractive investment opportunities in the stock market. Investors should take note of his moves and consider following his lead, especially given his track record of success.