In this article, we discuss the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
With a sheer focus on identifying undervalued companies with strong fundamentals, Warren Buffett, known as the world’s most successful investor, has accumulated a net worth of $142.7 billion through value investing. He set his road to wealth at a young age, with a strategy marked by early investments, reinvestment of profits, and a long-term outlook. After acquiring Berkshire Hathaway in 1965, Buffett turned the struggling textile company into a $1 trillion conglomerate. The company owns businesses like Dairy Queen and GEICO, along with a vast portfolio of publicly traded stocks. With investment principles such as “never lose money” and “buy businesses, not stocks”, Buffett has not only grown his personal fortune but also shaped his approach to identifying cheap value stocks.
Key drivers of his success have been Buffett’s focus on companies with steady revenue, strong profits, and active dividend schemes. Such stocks enabled the compounding of cash flow, fueling his company’s growth further. The success of Buffett’s strategic focus on sustainable growth and compounding returns is evident from the staggering returns seen in his company’s stock, translating a mere $500 investment in 1965 into a multi-million-dollar fortune.
With this backdrop, let’s jump to our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
Our Methodology
To curate our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett, we scanned Berkshire Hathaway’s investment portfolio to extract stocks trading with a forward price-to-earnings multiple of 20x, as of the time of writing. We ranked the shortlisted stocks in ascending order based on Berkshire Hathaway’s stake in them. We also considered hedge fund sentiment surrounding these stocks as of Q1 2025, using Insider Monkey’s hedge fund database that tracks over 1,000 hedge funds.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Charter Communications, Inc. (NASDAQ:CHTR)
Forward Price-to-Earnings: 7.65
Berkshire Hathaway Stake Value: $731,258,969
Number of Hedge Fund Holders: 59
With a low price-to-earnings multiple and a significant presence in Warren Buffett’s investment portfolio, Charter Communications, Inc. (NASDAQ:CHTR) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
Charter Communications, Inc. (NASDAQ:CHTR) released its Q2 2025 earnings on July 25, 2025. The company’s EPS of $9.18 missed the expected EPS of $9.58. However, CHTR reported strong growth in its Mobile segment with the addition of 500,000 lines during the quarter and over 2.1 million over the past year. Accordingly, revenue increased by 0.6% YoY, while EBITDA rose 0.5%.
Meanwhile, Charter Communications, Inc. (NASDAQ:CHTR) reported challenges in its Broadband segment, which incurred subscriber losses due to higher non-pay churn among Affordable Connectivity Program customers. The company’s Video segment reported an improvement in the rate of customer losses, which stood at 80,000, compared to 408,000 in Q2 2024. New pricing and packaging options, along with a new programmer app inclusion packaging, resulted in lower churn rates during the quarter. The Small Business segment struggled, reporting a revenue decline of 0.6%.
In response to weaker-than-expected Q2 earnings, UBS, on July 28, reduced its price target on Charter Communications, Inc. (NASDAQ:CHTR) from $425 to $355. The investment firm adjusted its full-year growth expectations, forecasting a slight decline in the company’s revenue and a modest EBITDA growth. At the same time, Charter Communications, Inc. (NASDAQ:CHTR) is expected to experience a cash flow boost from the recent tax legislation.
With its Spectrum brand, Charter Communications, Inc. (NASDAQ:CHTR) offers mobile, internet, video, and voice services. It is included in our list of cheap value stocks to buy.
11. Ally Financial Inc. (NYSE:ALLY)
Forward Price-to-Earnings: 11.43
Berkshire Hathaway Stake Value: $1,057,630,000
Number of Hedge Fund Holders: 47
Ally Financial Inc. (NYSE:ALLY), with its low price-to-earnings multiple and significant presence in Warren Buffett’s investment portfolio, secures a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
Maintaining a ‘Buy’ rating, Truist Securities, on July 25, 2025, increased its price target on Ally Financial Inc. (NYSE:ALLY) from $44 to $45. The investment firm’s price revision reflects the company’s strong second-quarter results.
Looking ahead, the analyst has raised its 2025 EPS estimate from $2.10 to $2.35. Alongside Truist, 10 other analysts raised their earnings estimate for Ally Financial Inc. (NYSE:ALLY). However, for 2026, Truist Securities reduced its EPS estimate from $5.65 to $5.50 due to expectations for lower net interest income from commercial floorplan assets.
Ally Financial Inc. (NYSE:ALLY), a digital financial services provider, offers banking products, including auto finance, mortgage finance, and online savings accounts. It is included in our list of cheap value stocks to buy.
10. Capital One Financial Corporation (NYSE:COF)
Forward Price-to-Earnings: 14.03
Berkshire Hathaway Stake Value: $1,281,995,000
Number of Hedge Fund Holders: 93
With a low price-to-earnings multiple and a significant presence in Warren Buffett’s investment portfolio, Capital One Financial Corporation (NYSE:COF) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
Capital One Financial Corporation (NYSE:COF) released its Q2 2025 results on July 22, 2025. While the company posted a net loss of $4.3 billion, its adjusted earnings amounted to $2.8 billion, reflecting strong operational performance. Meanwhile, the net loss was attributed to the impact of the Discover acquisition. The company’s revenue increased due to the partial-quarter contribution from Discover. On the other hand, pre-provision earnings increased by 34%. COF’s management expects strong long-term potential of the acquisition.
Meanwhile, two days later, Citigroup raised its price target from $250 to $275, reinforcing the management’s view of the company’s long-term prospects. Previously, on July 11, 2025, JPMorgan had also increased its target on Capital One Financial Corporation (NYSE:COF) from $210 to $245. The analyst attributed the price revision to a reduced risk of ‘left-tailed scenarios’ and improved long-term growth prospects.
Capital One Financial Corporation (NYSE:COF), a diversified bank serving consumers and small businesses, offers credit cards, auto loans, banking, and savings products. It is included in our list of cheap value stocks to buy.
