In this article, we will take a look at the 5 stocks that Warren Buffett and Jim Cramer love. To see more such companies, go directly to Warren Buffett and Jim Cramer Love These Stocks.
5. Chevron Corporation (NYSE:CVX)
Warren Buffett’s Stake Value: $18,590,066,491
During the start of 2023, Cramer rightfully pointed out that oil stocks this year won’t perform as good as they did last year. However, he said that Chevron Corporation (NYSE:CVX) was a smart stock pick to invest in the oil industry. He said that if oil stays above $60 per barrel, it would make sense to invest in the industry albeit selectively since Cramer said the Fed’s persistent rate hikes could slow the economy down, affecting oil stocks.
Warren Buffett’s Berkshire owns a gigantic $18.6 billion stake in Chevron Corporation (NYSE:CVX) as of the end of the third quarter of 2023.
Chevron Corporation (NYSE:CVX) in October posted third quarter results. Adjusted EPS in the quarter came in at of $3.05 missing estimates by $0.64. Revenue fell 18.8% year over year to $54.08 billion, beating estimates by $1.08 billion.
Carillon Eagle Growth & Income Fund made the following comment about Chevron Corporation (NYSE:CVX) in its Q2 2023 investor letter:
“Chevron Corporation (NYSE:CVX) stock also traded lower as global oil prices declined in response to fears of an economic slowdown. Energy stocks were the second-worst-performing sector in the quarter.”
4. The Coca-Cola Company (NYSE:KO)
Warren Buffett’s Stake Value: $22,392,000,000
Jim Cramer has called The Coca-Cola Company (NYSE:KO) one of his favorite stocks to own during a recession. He thinks that The Coca-Cola Company (NYSE:KO) is a “textbook” example of stocks to buy during troubled times. Jefferies recently started covering The Coca-Cola Company (NYSE:KO) stock with a Hold rating. Jefferies’ analyst Kaumil Gajrawala set a $64 price target on The Coca-Cola Company (NYSE:KO). While the analyst believes The Coca-Cola Company (NYSE:KO) has strong growth potential in developing markets, he’s worried about a potential tax settlement in the short term.
“Coke may be on the hook for $14bn in taxes (more than a year’s earnings) and a 3.5pp increase to its effective tax rate. This equates to ~10% of market cap and $5.60 a share,” Gajrawala wrote in a note.
Warren Buffett is a big fan of Coca Cola stock and also the Coke drink. His hedge fund Berkshire reported owning a stake worth over $22 billion in the company as of the end of the September quarter.
Rowan Street Capital made the following comment about The Coca-Cola Company (NYSE:KO) in its Q4 2022 investor letter:
“Let’s take The Coca-Cola Company (NYSE:KO) for example. Its dividend yield is 2.8%, earnings are estimated to grow at only 3.6% rate per year over next 4 years, and its earnings multiple is currently at 24x (based on next years forecasted earnings). KO has an anemic growth, so we can argue that paying 24x earnings is not very attractive. Let’s assume that the multiple will stay constant over the next 3-5 years, thus our expected annual returns will be 2.8%+3.6% = 6.4% (that is below the current reported inflation rate and only slightly above the risk-free rate of 4%).”
3. American Express Company (NYSE:AXP)
Warren Buffett’s Stake Value: $22,618,800,333
Earlier this year, Jim Cramer, while answering a question about American Express Company (NYSE:AXP), said that companies like American Express profit due to people going out at night. He also said that the booming travel demand around the world is also benefitting American Express Company (NYSE:AXP).
Warren Buffett has been a long-term shareholder of American Express Company (NYSE:AXP). As of the end of the third quarter of 2023, Berkshire owns a $23 billion stake in American Express Company (NYSE:AXP).
In October, American Express Company (NYSE:AXP) posted third quarter results. GAAP EPS in the period came in at $3.30, beating estimates by $0.36. Revenue in the period jumped about 13.4% year over year to $15.38 billion, beating estimates by $20 million.
American Express Company (NYSE:AXP) talked in detail about the factors driving its business and full-year 2023 outlook in Q3 earnings call. American Express Company (NYSE:AXP) said:
“For the full year, we expect revenue growth of around 15%, consistent with the revenue guidance range we provided at the beginning of the year. As I discussed before, we now expect variable Card Member engagement expenses to be around 42% of total revenues on a full year basis, modestly below our original expectation. On marketing, we still expect to spend around $5.5 billion for the full year. And lastly, we now expect our operating expenses to be around $14.5 billion this year, modestly above our original expectation as we invest in areas critical to our success. Taking everything together, our earnings per share guidance remains between $11.00 and $11.40. Looking forward, we remain committed to focusing on achieving our aspirations of sustainably delivering revenue growth in excess of 10% and meeting EPS growth in a steady-state macro environment.”
Read the full earnings call transcript here.
ClearBridge Large Cap Value Strategy made the following comment about American Express Company (NYSE:AXP) in its Q3 2023 investor letter:
“Other detractors included American Express Company (NYSE:AXP), which fell on concerns over slower consumer spending and rising charge-offs, as well as wireless tower REIT American Tower, which was pressured by the increase in rates along with the broader real estate sector.”
2. Bank of America Corporation (NYSE:BAC)
Warren Buffett’s Stake Value: $28,279,487,924
Jim Cramer back in August this year gave bullish views on Bank of America Corporation (NYSE:BAC). He said that Bank of America Corporation (NYSE:BAC)’s interest margins and profits are helped by the Fed’s rate hikes. In context of the regional banking crisis, Cramer said that he’s worried about small regional banks but is not worried about major banks like Bank of America Corporation (NYSE:BAC). Jim Cramer also praised Bank of America Corporation (NYSE:BAC)’s huge investments in technology and said the bank was now bearing fruit of its platform investments.
Warren Buffett also likes Bank of America Corporation (NYSE:BAC). As of the end of the third quarter of 2023, Berkshire Hathaway reported owning a $28.3 billion stake in Bank of America Corporation (NYSE:BAC).
Diamond Hill Select Strategy made the following comment about Bank of America Corporation (NYSE:BAC) in its Q2 2023 investor letter:
“Other bottom contributors included SunOpta, Bank of America Corporation (NYSE:BAC) and Texas Instruments. Bank of America (which we added to the portfolio in Q2) is among the US’s largest banks. Shares were pressured during the quarter against a still-challenging backdrop for banks, particularly as investors fret about rising deposit costs and the values of some longer-duration assets in a rising-rates environment.”
1. Apple Inc. (NASDAQ:AAPL)
Warren Buffett’s Stake Value: $156,753,093,002
Apple Inc. (NASDAQ:AAPL) ranks 1st in our list of the stocks loved by both Jim Cramer and Warren Buffett. A few weeks ago Jim Cramer talked in detail on the reasons why he’s so bullish on Apple Inc. (NASDAQ:AAPL) stock. Cramer said that he likes to hold Apple Inc. (NASDAQ:AAPL) stock and not trade it. Cramer criticized analysts and journalists who remain skeptical on Apple Inc. (NASDAQ:AAPL) stock. He praised Apple Inc. (NASDAQ:AAPL)’s growing services revenue and said he’s looking at Apple’s strengths in emerging markets where users are paying Apple not only for the iPhone but also for the extra services.
Warren Buffett is a long-term fan of Apple Inc. (NASDAQ:AAPL). His hedge fund reported owning a $157 billion stake in Apple Inc. (NASDAQ:AAPL) as of the end of the September quarter.
RiverPark Advisors made the following comment about Apple Inc. (NASDAQ:AAPL) in its Q3 2023 investor letter:
“Apple Inc. (NASDAQ:AAPL): Apple shares were a top detractor in the quarter following reports of the Chinese government banning iPhone use by government employees. Additionally, while the iPhone 15 rollout went generally as expected, the market was underwhelmed by the upgrades in the new phone. Despite these overhangs, early reports from the supply chain seem to indicate demand for the new phone is in line with or better than investor expectations. In August, the company reported a broadly in-line fiscal 3Q23 with $82 billion of revenue and $24 billion of free cash flow. High margin Services Revenue continues to grow faster than the overall business leading to gross and operating margin expansion.
With an installed base of 2 billion active devices and significant growth of the company’s recurring revenue Services segment (now 18% of revenue), we believe that Apple remains one of the most innovative, best positioned and most profitable companies in the mobile technology industry.”
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