5 Best Value Stocks to Buy According to Warren Buffett

1. Bank of America Corporation (NYSE:BAC)

Topping the list is another one of Buffett’s favorite bank stocks, Bank of America Corporation (NYSE:BAC), which Berkshire owned 1.01 billion shares of on September 30. And while Buffett has sold off some of his stakes in other banks this year, he added over 85 million BAC shares to Berkshire’s 13F portfolio in Q3.

Buffett, who has been fairly conservative himself this year with his capital allocation, maintaining a large cash position throughout the year, likely appreciates BAC’s own conservatism. The bank is well above its CET1 ratio (a measure of its capital position in relation to the riskiness of its assets), far more so than the other major investment banks. Bank of America shares are quite a bit cheaper than they were last year, trading at just above 1x book value and 2.95x sales, and Buffett got them at an even cheaper rate in Q3, so it’s not surprising to see him pour some of his massive cash pile into further building his stake in BAC, his top value stock pick.

If you’re looking to add some consistent performers to your portfolio that some investors refuse to touch (their loss), don’t miss the Top 10 Sin Stocks to Buy Now.

Disclosure: None.