In this article, we will take a look at the 10 Best Value Stocks to Buy in 2026 According to Warren Buffett.
When Warren Buffett stepped down as CEO of Berkshire Hathaway at the end of 2025, the company was holding a massive cash position. Berkshire reported more than $370 billion in cash equivalents at year-end, with much of it invested in Treasury bills.
Buffett’s challenge with cash management may not directly apply to most everyday investors. Still, his broader approach to handling cash closely matches what many financial advisors recommend to their clients. In his 2024 shareholder letter, Buffett said Berkshire Hathaway shareholders should remain confident that the company would continue investing most of its capital in equities, mainly in American businesses. He noted that many of those companies also operate extensively overseas.
Buffett also stressed that Berkshire would never prefer holding cash-equivalent assets over owning strong businesses, whether through full ownership or smaller equity stakes. Over the years, Buffett has repeatedly argued that inflation can erode the value of cash and bonds over time. In contrast, strong businesses are often in a better position to adjust during periods of monetary instability, as long as demand for their products and services remains steady.
Historical market performance has largely supported that view. Between 1975 and 2026, the S&P 500 delivered returns well above inflation over the long run. Buffett has consistently encouraged investors to put money regularly into low-cost, broadly diversified S&P 500 index funds instead of trying to predict short-term market swings. At the same time, he has acknowledged that no one can reliably forecast near-term market performance. The text also noted that financial advisors generally recommend maintaining an emergency cash reserve that covers three to six months of expenses. That cushion can help people handle unexpected financial situations without disrupting long-term investments.
Given this, we will take a look at the best value stocks according to Warren Buffett.
Our Methodology:
For this article, we scanned Berkshire Hathaway’s 13F portfolio, as of Q4 2025, and identified stocks with forward P/E ratios below 20. We picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Nucor Corporation (NYSE:NUE)
Berkshire Hathaway’s Stake Value: $1,045,167,939
Forward P/E: 18.08
On May 1, Seaport Research raised its price recommendation on Nucor Corporation (NYSE:NUE) to $245 from $185. It reiterated a Buy rating on the stock. The firm said it remains encouraged by Nucor’s long-term growth potential across market cycles, the analyst told investors.
On April 29, Citi also lifted its price target on Nucor to $260 from $180 while keeping a Buy rating on the shares. The firm updated its model following the company’s earnings report and said it remains bullish on Nucor. Citi noted that the company’s new capacity is accelerating returns.
During Nucor’s Q1 2026 earnings call, Chairman and CEO Leon Topalian said the company generated nearly $1.5 billion in EBITDA and reported earnings of $3.23 per share. He said the results showed a great improvement from the fourth quarter. Topalian also noted that Nucor returned $254 million to shareholders through dividends and share repurchases. At the same time, the company reinvested $661 million back into the business.
He added that steel mill shipments reached 7 million tons during the quarter, the highest quarterly shipment volume in Nucor’s history. According to Topalian, the company’s steel mills backlog ended the first quarter at 4.7 million tons. That figure was up 20% from year-end levels and marked the highest level since the second quarter of 2021.
Nucor Corporation (NYSE:NUE) manufactures steel and steel products and operates facilities across the United States, Canada, and Mexico. The company also produces and procures ferrous and non-ferrous materials mainly for use in its steel manufacturing business. Its operations are divided into steel mills, steel products, and raw materials segments.
9. Aon plc (NYSE:AON)
Berkshire Hathaway’s Stake Value: $1,271,424,876
Forward P/E: 16.53
On May 4, Piper Sandler raised its price recommendation on Aon plc (NYSE:AON) to $388 from $355. It reiterated an Overweight rating on the shares. The firm said quarterly revenue came in better than expected, while organic growth was mostly in line with consensus estimates, though slightly below its own expectations. Piper also noted that adjusted operating margin exceeded expectations, and the company reaffirmed its 2026 guidance. The firm said Aon delivered a solid quarter, with results holding up relatively well.
During Aon’s Q1 2026 earnings call, Executive Vice President and CFO Edmund Reese said the quarter reflected the strength and resilience of the company’s business model. He added that the results supported Aon’s long-term goal of delivering mid-single-digit or higher organic growth. Reese also discussed the company’s capital allocation strategy during the quarter. He said Aon took advantage of market conditions to repurchase $500 million worth of shares.
In addition, the company invested $349 million in high-growth tuck-in acquisitions within the middle-market segment. He also reaffirmed Aon’s full-year 2026 outlook, saying the company still expects to achieve mid-single-digit or higher organic revenue growth, along with 70 to 80 basis points of margin expansion for the year.
Aon plc (NYSE:AON) is a global professional services company. Its operations are divided into two segments: Risk Capital and Human Capital. The Risk Capital segment supports clients through its Commercial Risk and Reinsurance solution lines.