5 Cheap Value Stocks to Buy According to Warren Buffett

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In this article, we discuss the 5 cheap value stocks to buy according to Warren Buffett. If you want to read Berkshire Hathaway’s hedge fund performance and Warren Buffett’s investment philosophy, go directly to 12 Cheap Value Stocks to Buy According to Warren Buffett.

5. Occidental Petroleum Corporation (NYSE:OXY)

Value of Berkshire Hathaway’s 13F Position: $11.9 billion

Number of Hedge Fund Holders: 74

Occidental Petroleum Corporation (NYSE:OXY) is one of the oil and gas stocks that lost their value in the last month due to falling crude oil prices. The company stock went down by over 13% in the last 30 days as of December 21. Nevertheless, the US Energy Information Administration predicts that oil prices are going to receive a significant boost in price per barrel due to a higher demand than supply, which bears good news for Occidental Petroleum Corporation (NYSE:OXY) stock. The company stock is trading at a PE ratio of 6.9x as of December 21.

According to our database, the hedge funds having a stake in Occidental Petroleum Corporation (NYSE:OXY) increased from 66 in Q2 to 74 in Q3 2022. Berkshire Hathaway increased its holdings in the company by 23% in the quarter to 194.35 million shares, worth $11.9 billion in the September quarter, making it the leading shareholder of the company.

On December 7, Barclays analyst Jeanine Wai reiterated an Outperform rating on Occidental Petroleum Corporation (NYSE:OXY) and lowered the price target to $74 from $85 after the company’s Q3 results.

Here is what Smead Capital Management has to say about Occidental Petroleum Corporation (NYSE:OXY) in its Q3 2022 investor letter:

“Our top-performing stocks in the quarter includes Occidental Petroleum (NYSE:OXY). Oil and gas have been the best game in the stock market town this year and it was a pleasant surprise to see home builders pick up even with dour news on interest rates and the economy. For the first three quarters of the year, we should change the name of our fund to the Jed Clampett Fund. Occidental Petroleum (NYSE:OXY), was one of the standouts. Up through the bear market came a “bubblin’ crude!”

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