Markets

Insider Trading

Hedge Funds

Retirement

Opinion

13 Cheap Value Stocks To Buy According To Warren Buffett

In this piece, we will take a look at the 13 cheap value stocks to buy according to Warren Buffett. If you want to skip our introduction to the most successful investor of our age and recent stock market indicators, then take a look at the 5 Cheap Value Stocks To Buy According To Warren Buffett.

Warren Buffett is one of the richest people in the world, and the only finance professional who is part of the coveted centi-billionaire club. Billionaires with a net worth greater than $100 billion are typically industry tycoons who have amassed their wealth by building big businesses that target fashion, technology, electric vehicles, social media, retail, or other lucrative industries.

On the flip side, the finance and investing world is typically dominated by either big banks such as JPMorgan Chase & Co. (NYSE:JPM) and The Goldman Sachs Group, Inc. (NYSE:GS), or hedge funds such as Ken Fisher’s Fisher Investments or Ken Griffin’s Citadel Group. Since big banks were formed years ago, their founders are now dead and therefore cannot benefit from a centi-billionaire status through their shareholdings. Similarly, while big hedge fund bosses see their firms rake in billions of dollars each year, their profits cannot scale to the level of say Apple, Inc. (NASDAQ:AAPL), and the structure of most hedge funds, even those that are publicly traded, prevents behemoth valuations to make their owners ultra, ultra rich. If you’re interested in knowing how much money hedge funds make, you can check out 20 Highest Paid Hedge Fund Managers of All Time.

Warren Buffet, therefore, is an outlier. This is because his firm, Berkshire Hathaway, is not structured like a hedge fund. Instead, Berkshire is an investment holding company that dabbles in both public and private businesses. Its investment strategy, which sees Berkshire either outright buy most businesses or selectively take large stakes in mostly dividend paying firms, allows its revenue to match big tech giants more instead of hedge funds. This is because by buying businesses, Berkshire is entitled to a slice of their profits, and no matter how many big bets Ken Griffin makes on the stock market, revenue from a well oiled large business like the ones Mr. Buffett invests in is likely to surpass a hedge funds income from fund fee and returns.

Digging deeper, Berkshire’s income statement for the third quarter of this year shows that during the quarter, the firm raked in a cool $93.2 billion in revenue. Within these sales figures, a mere $4 billion came from interest, dividends, and other financial activities. Instead, the majority of Berkshire Hathaway’s third quarter revenue came from its insurance business and its freight, utility, and energy operations.

Yet, despite the fact that Mr. Buffett’s firm earns most of its money through business activities rather than making trades like hedge funds, he is still thought to be the greatest investor of our time. Considering this, one might wonder, what makes Warren Buffett the Oracle of Omaha? The answer is quite simple really. Mr. Buffet has somehow nearly perfected the art of picking out a select few companies that are able to post remarkable share price growth and pay dividends out of the thousands that trade on the stock market. To see how the Oracle thinks differently, consider the shares of The Coca-Cola Company (NYSE:KO). Warren Buffett bought the shares in 1998, and what else was happening back then? It was the dot com era when most people were buying attractive technology stocks. But the Oracle was buying the shares of a sugary beverage firm, and while the bubble popped, Mr. Buffett became one of the richest people in the world.

At the heart of his investing approach is what is dubbed Value Investing. Simply put, this involves an investor determining the fair value of a stock and then comparing it to the market price to see if it’s higher. If it is, then a buying decision is made based on the potential of the share price falling. Since the fair value of these stocks is higher than the market value, they often have low P/E ratios as well.

Today, we’ll take a look at some cheap value stocks to buy according to Warren Buffett. Some top picks are Liberty Latin America Ltd. (NASDAQ:LILA), Sirius XM Holdings Inc. (NASDAQ:SIRI), and StoneCo Ltd. (NASDAQ:STNE).

16 Billionaires Who Live Like Regular People

Our Methodology

To compile our list of the cheap value stocks to buy according to Warren Buffett, we first ranked all of his firm’s third quarter stock holdings by their price to trailing earnings ratio. Then, the top 30 stocks were ranked by their share price to pick out Warren Buffett’s best cheap value stock buys.

 Cheap Value Stocks To Buy According To Warren Buffett

13. Occidental Petroleum Corporation (NYSE:OXY)

Berkshire Hathaway’s Q3 2023 Investment Value: $14.5 billion

Latest P/E Ratio: 13.12

Latest Share Price: $60.16

Occidental Petroleum Corporation (NYSE:OXY) is an American oil and gas exploration and production firm headquartered in Houston, Texas. The firm’s third quarter of 2023 earnings report saw it beat analyst EPS estimates of $1 by posting $1.18 for the metric on the back of higher output.

As of Q3 2023 end, 75 out of the 910 hedge funds profiled by Insider Monkey had bought and owned Occidental Petroleum Corporation (NYSE:OXY)’s shares. The firm’s biggest shareholder in our database is Warren Buffett’s Berkshire Hathaway as it owns $14.5 billion worth of shares.

Along with Sirius XM Holdings Inc. (NASDAQ:SIRI), Liberty Latin America Ltd. (NASDAQ:LILA), and StoneCo Ltd. (NASDAQ:STNE), Occidental Petroleum Corporation (NYSE:OXY) is a top cheap stock that Warren Buffett is piling into.

12. The Coca-Cola Company (NYSE:KO)

Berkshire Hathaway’s Q3 2023 Investment Value: $22.3 billion

Latest P/E Ratio: 23.65

Latest Share Price: $58.57

The Coca-Cola Company (NYSE:KO) is a carbonated beverage company that is one of the largest of its kind in the world. It’s also one of Warren Buffett’s oldest stock picks, as he made his firm major purchase in 1998.

During September 2023, 57 out of the 910 hedge funds surveyed by Insider Monkey had invested in the company. Warren Buffett’s Berkshire Hathaway is its largest shareholder through its $22.3 billion investment.

11. Citigroup Inc. (NYSE:C)

Berkshire Hathaway’s Q3 2023 Investment Value: $2.27 billion

Latest P/E Ratio: 7.15

Latest Share Price: $45.23

Citigroup Inc. (NYSE:C) is an American bank headquartered in New York City. Media reports suggest that the bank is interested in expanding its presence in the private credit market, to follow other giants such as Barclays and Wells Fargo.

After sifting through 910 hedge fund holdings for their shareholdings during this year’s third quarter, Insider Monkey discovered that 79 were Citigroup Inc. (NYSE:C)’s shareholders. Out of these, the biggest investor was Berkshire Hathaway since it owned $2.2 billion worth of shares.

10. The Kroger Co. (NYSE:KR)

Berkshire Hathaway’s Q3 2023 Investment Value: $2.23 billion

Latest P/E Ratio: 19.56

Latest Share Price: $44.18

The Kroger Co. (NYSE:KR) is an American grocery retailer headquartered in Cincinnati, Ohio. The firm has beaten analyst EPS estimates in all four of its latest quarters and the shares are rated Buy on average with an average share price target of $50.16.

Insider Monkey dug through 910 hedge fund portfolios for 2023’s September quarter to find out that 41 had bought the retailer’s shares. The Kroger Co. (NYSE:KR)’s largest hedge fund stakeholder is Warren Buffett’s Berkshire Hathaway due to its $2.2 billion stake.

9. Jefferies Financial Group Inc. (NYSE:JEF)

Berkshire Hathaway’s Q3 2023 Investment Value: $15.8 million

Latest P/E Ratio: 24.93

Latest Share Price: $35.04

Jefferies Financial Group Inc. (NYSE:JEF) is an investment banking and asset management company headquartered in New York City. Like Citigroup, it is also targeting the private credit industry and raised $2.1 billion for this in November 2023.

During September 2023, 34 out of the 910 hedge funds polled by Insider Monkey had bought and owned Jefferies Financial Group Inc. (NYSE:JEF)’s shares. Out of these, the biggest investor was Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC as it owned 5.4 million shares that are worth $198 million.

8. The Kraft Heinz Company (NASDAQ:KHC)

Berkshire Hathaway’s Q3 2023 Investment Value: $10.9 billion

Latest P/E Ratio: 14.33

Latest Share Price: $34.94

The Kraft Heinz Company (NASDAQ:KHC) is a well known food brand that was set up in 1869. The firm’s investors were in for some great news in November 2023 after Bernstein upgraded its share price target to $40 and also upgraded the rating to Outperform from Perform.

For their shareholdings during this year’s third quarter, 40 out of the 910 hedge funds surveyed by Insider Monkey had held a stake in the firm. The Kraft Heinz Company (NASDAQ:KHC)’s largest hedge fund shareholder is Warren Buffett’s Berkshire Hathaway due to its $10.9 billion investment.

7. Bank of America Corporation (NYSE:BAC)

Berkshire Hathaway’s Q3 2023 Investment Value: $28.2 billion

Latest P/E Ratio: 8.3

Latest Share Price: $29.73

Bank of America Corporation (NYSE:BAC) is one of the biggest banks in America which is headquartered in Charlotte, North Carolina. The firm was out with some good news for its investors like Warren Buffett in November when it increased its dividend to 24 cents.

For their September quarter of 2023 investments, 88 out of the 910 hedge funds tracked by Insider Monkey were Bank of America Corporation (NYSE:BAC)’s investors. Berkshire Hathaway owned the biggest stake among these which was worth $28.2 billion.

6. HP Inc. (NYSE:HPQ)

Berkshire Hathaway’s Q3 2023 Investment Value: $2.6 billion

Latest P/E Ratio: 12.3

Latest Share Price: $28.64

HP Inc. (NYSE:HPQ) is a personal computing products and services provider headquartered in Palo Alto, California. The firm’s third quarter of 2023 revenue dropped by 6.5% to $13.2 billion as the slowdown in the personal computing market continued.

44 out of the 910 hedge funds part of Insider Monkey’s Q3 2023 database had bought and owned the firm’s shares. HP Inc. (NYSE:HPQ)’s largest hedge fund investor is Warren Buffett’s Berkshire Hathaway courtesy of its $2.6 billion stake.

Liberty Latin America Ltd. (NASDAQ:LILA), HP Inc. (NYSE:HPQ), Sirius XM Holdings Inc. (NASDAQ:SIRI), and StoneCo Ltd. (NASDAQ:STNE) are some cheap value stocks in Warren Buffett’s portfolio.

Click here to continue reading and check out 5 Cheap Value Stocks To Buy According To Warren Buffett.

Suggested articles:

Disclosure: None. 13 Cheap Value Stocks To Buy According To Warren Buffett is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.

Trust me — you’ll want to read this report before putting another dollar into any tech stock.

For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99 a month.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!