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5 Cheapest Stocks in Warren Buffett’s Portfolio for 2024

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In this piece, we will take a look at the 5 cheapest stocks in Warren Buffett’s portfolio for 2024. If you want to see more stocks in this selection, you can look at the 12 Cheapest Stocks in Warren Buffett’s Portfolio for 2024.

5. Ally Financial Inc. (NYSE:ALLY)

Berkshire Hathaway’s Latest Investment: $773.72 Million
Number of Hedge Fund Holders: 43
P/E Ratio: 9.52

Ally Financial Inc. (NYSE:ALLY) is one of the cheapest stocks in Warren Buffett’s portfolio for 2024 in the financial services sector. Ally Financial Inc. (NYSE:ALLY) provides various digital products and services to people seeking insurance, mortgages, car loans, and other products.

Ally Financial Inc. (NYSE:ALLY) is one of the best-performing stocks in Buffett’s portfolio, going by the 45% year-to-date gain, better than the 21% gain for the S&P 500. In addition, Ally Financial Inc. (NYSE:ALLY) offers a 3.42% yield. Berkshire held stakes worth $773.72 million as of the end of Q3 2023.

As of the conclusion of Q3 2023, 43 hedge funds listed in Insider Monkey’s database disclosed holding stakes in Ally Financial Inc. (NYSE:ALLY), a slight decrease from the 46 funds reported in the preceding quarter. The aggregated worth of these stakes exceeded $1.64 billion. Notably, Warren Buffett’s Berkshire Hathaway emerged as the leading stakeholder during Q3, possessing 29 million shares in the company.

Here is what Silver Beech Capital said about Ally Financial Inc. (NYSE:ALLY) in its Q1 2023 investor letter

“Ally Financial Inc. (NYSE:ALLY) is the largest all-digital bank in the United States, the 22nd largest bank by total assets ($192 billion), the nation’s leading prime auto lender (with 6.5 million consumer customers), and leading auto floorplan lender (with over 23,000 dealer relationships). Most of Ally’s assets are auto loans and finance receivables, but Ally also offers consumer protection insurance through its dealer channels and operates small corporate and mortgage lending businesses. Notably, Ally also offers some of the industry’s most competitive deposit products: Ally was awarded “Best Checking Account”, “Best Saving Account”, and overall “Best Online Bank” by third party reviews and was the first large bank to eliminate overdraft fees. We believe Ally’s intrinsic value is more than 40% greater than its March 31 share price…”(Click here to read the full text).

Follow Ally Financial Inc. (NYSE:ALLY)

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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.

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