americanwealthinvesting.com Open in urlscan Pro
3.213.75.220  Public Scan

Form analysis
1 forms found in the DOM

GET https://thedarwinhub.com/track/lg/

<form action="https://thedarwinhub.com/track/lg/" method="GET" id="submission_form">
  <div class="form-group text-center" style="text-align: center;">
    <label>Enter Your Email Address</label>
    <input type="email" name="email" class="form-control text-center" id="submission_form_email" placeholder="email@example.com" style="text-align: center;">
  </div>
  <input type="hidden" name="mbid" value="1432">
</form>

Text Content

Skip to content


AMERICAN WEALTH INVESTING



Menu
 * Home
 * Latest News
 * Gold
 * Trade Ideas
 * About Us
 * Contact Us

Latest News 
December 6, 2024


GOT $3,000? HERE ARE 3 BEST WARREN BUFFETT STOCKS TO BUY

Posted By: admin
view original post



Warren Buffett’s portfolio at Berkshire Hathaway has been an excellent source of
ideas for generations of investors. Even though the Oracle of Omaha is pulling
back to cash heavily this year, there are still some fantastic stocks being held
at Berkshire that appear undervalued and bear watching.

Here are three of the best Buffett stocks to look into if you have a few
thousand dollars to put to work in today’s market.


KEY POINTS

 * A 60% market share, 5.5x cash flow, and 30% annual EPS growth make SiriusXM a
   standout Buffett pick for long-term value.
 * Reliable cash flows, a 1.7% yield, and Buffett’s continued buying underline
   OXY’s appeal as a low-cost oil giant.
 * Near Buffett’s cost basis, Citigroup trades at 0.7x book value, offers a 3.2%
   yield, and benefits from aggressive share buybacks.


SIRIUSXM

In a year that has seen Buffett sell far more than he’s bought, internet radio
company SiriusXM (NASDAQ:SIRI) stands out as one of his few new positions.

Buffett started by buying tracking stocks that were set to be merged into a
combined SiriusXM stock. After the merger, though, he bought up additional
shares that ultimately put him in control of about a third of the company.

While Buffett found something of a one-time opportunity in the merger, there
still could be decent value in SiriusXM. At 5.5x cash flow and 0.8 to book
value, the company still looks cheap enough to be of interest to value
investors.

While analysts are somewhat divided on the stock’s future, the median target
price for SIRI shares over the next 12 months implies an upside of about 5%. The
real value of the stock, however, is in its long-term earnings growth potential.

Like most Buffett stocks, SiriusXM enjoys a solid moat within its industry. The
company commands about 60% of the internet radio broadcasting market and is
essentially a default brand within the market.

This, in combination with the company’s ongoing partnerships with various
automakers to include its services when consumers purchase cars, could allow
SiriusXM to continue growing for a long time to come.

Over the next 3-5 years alone, analysts predict that earnings per share could
rise at an annualized rate of over 30%. As a result, there’s a very good chance
that Buffett saw SiriusXM as an undervalued stock with significant future growth
potential and an attractive competitive advantage.


OCCIDENTAL PETROLEUM

Occidental Petroleum (NYSE:OXY) is only the sixth-largest holding in the
Berkshire Hathaway portfolio, accounting for a bit under 5% of the total.

The oil company has become one of Buffett’s favorite buys in recent years.
Berkshire has been steadily building its position in OXY over the last several
years, including a buying spree in June that saw the company add over 7 million
shares in just a few trading days.

Even today, Occidental’s valuation looks quite attractive. The stock trades at
about 15x forward earnings and 4.2x cash flow, both of which are quite low for a
company with an established position in the Permian Basin oil fields.

Occidental also produces highly reliable cash flows that, in the words of Indian
investment legend Mohnish Pabrai, allow Buffett to “clip coupons.” By this,
Pabrai meant that Buffett can predict with a very high degree of accuracy the
future cash flows of the business.

So far, Buffett has shown a significant appetite to keep holding OXY as the
price has fluctuated, meaning that it’s likely still a good value. Berkshire has
continued buying everywhere from $44 to $64, a range in which the stock still
resides.

Even more telling is the fact that Buffett seems to want to keep this buying
habit up well into the future. Berkshire has regulatory approval to buy as much
as 50% of the company. Although Buffett claims he doesn’t have any plans of
buying quite that much, it’s clear that he wants to keep the option to buy OXY
on the table for the foreseeable future.

OXY is also reasonably attractive as an income source, as the stock yields about
1.7% and pays $0.88 per share annually. While this isn’t a massive yield, it
does handily beat the S&P 500 average yield of 1.2%.

Between the reliability of its cash flows, its position in a well-proven oil
production region and a reasonably high dividend, OXY has many of the makings of
what Buffett’s longtime partner, Charlie Munger, might call a wonderful business
at a fair price.


CITIGROUP

Last but not least is Citigroup (NYSE:C), a relatively recent addition to the
Berkshire portfolio.

Buffett bought the vast majority of his $3.9 billion stake in Citigroup in 2022,
adding slightly to it in 2023. Though Buffett hasn’t kept buying Citigroup
shares in 2024, it also isn’t among the list of stocks he decided to sell as the
market crept steadily higher this year.

By several metrics, Citigroup still looks quite cheap at today’s prices. The
stock is priced at about 8x cash flow and 12x forward earnings. These metrics
would look good on their own, but they are augmented by the fact that C shares
trade at 0.7x book value and 0.8x expected earnings growth.

By most standards, shares of the financial services company look quite cheap,
though it’s worth noting that its debt-to-equity ratio of 1.6x is a bit on the
high side.

Citigroup stands out from many Buffett stocks in the sense that investors can
still access something close to the Oracle of Omaha’s own cost basis.

Many longtime Buffett holdings were fantastic values when they were added to the
Berkshire portfolio but have since risen enough that investors aren’t getting
quite the deal that Buffett did. In Citigroup’s case, though, Buffett has a cost
basis of about $61.80 and the stock is trading just 16% higher.

Citigroup pays a dividend that is even higher than OXY’s at 3.2% but this
generous payout is only one of the ways that Citigroup likes to pass cash back
through to its shareholders. The other is a slow buy steady buyback program that
has been pulling shares off the market since 2014.

Over time, this buyback effort has had a significant impact, reducing the number
of outstanding shares from 3.04 billion at the end of 2013 to 1.94 billion as of
the end of Q3 2024.






POST NAVIGATION

Where Will Super Micro Computer Stock Be in 2 Years?
Artificial Intelligence (AI) Companies Are Going Nuclear: Here Are 3 Energy
Stocks You Should Know

ENTER YOUR INFORMATION BELOW TO RECEIVE FREE TRADING IDEAS, LATEST NEWS, AND
ARTICLES.

Enter Your Email Address
Get Your Free Trade Idea!

Your information is secure and your privacy is protected. By opting in you agree
to receive emails from us and our affiliates. Opt-out any time, we hate spam!

Sponsored content

americanwealthinvesting.com is not an investment advisor and is not registered
with the U.S. Securities and Exchange Commission or the Financial Industry
Regulatory Authority. Further, owners, employees, agents or representatives of
americanwealthinvesting.com are not acting as investment advisors and might not
be registered with the U.S. Securities and Exchange Commission or the Financial
Industry Regulatory.

The sender of this email makes no representations or warranties concerning the
products, practices or procedures of any company or entity mentioned or
recommended in this email, and makes no representations or warranties concerning
said company or entity’s compliance with applicable laws and regulations,
including, but not limited to, regulations promulgated by the SEC or the CFTC.
The sender of this email may receive a portion of the proceeds from the sale of
any products or services offered by a company or entity mentioned or recommended
in this email. The recipient of this email assumes responsibility for conducting
its own due diligence on the aforementioned company or entity and assumes full
responsibility, and releases the sender from liability, for any purchase or
order made from any company or entity mentioned or recommended in this email.

The content on any of americanwealthinvesting.com websites, products or
communication is for educational purposes only. Nothing in its products,
services, or communications shall be construed as a solicitation and/or
recommendation to buy or sell a security. Trading stocks, options and other
securities involves risk. The risk of loss in trading securities can be
substantial. The risk involved with trading stocks, options and other securities
is not suitable for all investors. Prior to buying or selling an option, an
investor must evaluate his/her own personal financial situation and consider all
relevant risk factors. See: Characteristics and Risks of Standardized Options.

The information presented in this site is not intended to be used as the sole
basis of any investment decisions, nor should it be construed as advice designed
to meet the investment needs of any particular investor. Nothing in our research
constitutes legal, accounting or tax advice or individually tailored investment
advice. Our research is prepared for general circulation and has been prepared
without regard to the individual financial circumstances and objectives of
persons who receive or obtain access to it. Our research is based on sources
that we believe to be reliable. However, we do not make any representation or
warranty, expressed or implied, as to the accuracy of our research, the
completeness, or correctness or make any guarantee or other promise as to any
results that may be obtained from using our research. To the maximum extent
permitted by law, neither we, any of our affiliates, nor any other person, shall
have any liability whatsoever to any person for any loss or expense, whether
direct, indirect, consequential, incidental or otherwise, arising from or
relating in any way to any use of or reliance on our research or the information
contained therein. Some discussions contain forward looking statements which are
based on current expectations and differences can be expected. All of our
research, including the estimates, opinions and information contained therein,
reflects our judgment as of the publication or other dissemination date of the
research and is subject to change without notice. Further, we expressly disclaim
any responsibility to update such research. Investing involves substantial risk.
Past performance is not a guarantee of future results, and a loss of original
capital may occur. No one receiving or accessing our research should make any
investment decision without first consulting his or her own personal financial
advisor and conducting his or her own research and due diligence, including
carefully reviewing any applicable prospectuses, press releases, reports and
other public filings of the issuer of any securities being considered. None of
the information presented should be construed as an offer to sell or buy any
particular security. As always, use your best judgment when investing.

Disclaimer: Past performance is no guarantee of future performance. This product
is for educational purposes only. Practical application of the products herein
are at your own risk and americanwealthinvesting.com, its partners,
representatives and employees assume no responsibility or liability for any use
or mis-use of the product. Please contact your financial advisor for specific
financial advice tailored to your personal circumstances. Any trades shown are
hypothetical example and do not represent actual trades. Actual results may
differ. Nothing here in constitutes a recommendation respecting the particular
security illustrated.

Copyright © 2024 - American Wealth Investing
Terms of Use | Privacy | Do Not Sell My Info - CA Resident Only