5 Best Value Stocks to Buy According to Warren Buffett

4. The Kraft Heinz Company (NASDAQ:KHC)

Hedge funds have soured on The Kraft Heinz Company (NASDAQ:KHC) over the past five years, with about 35% of the stock’s former shareholders having moved on to other investment opportunities. Buffett is not one of them, having held on to every single one of the 325,634,818 KHC shares he acquired in 2015 as part of the private equity-backed mega merger between Kraft and Heinz facilitated by Berkshire and 3G Capital.

That’s not to say Buffett is thrilled with the investment, which would be a tough sell given that KHC shares have cratered by 55% since the merger. He’s admitted that they overpaid for Kraft and also that he would’ve sold some of his shares by this point if his holding had been smaller. Nonetheless, Buffett believes the company is a “great business” and the price looks reasonable at just 0.85x book value.