4 Warren Buffett Stocks to Buy

These undervalued stocks are among the holdings in Berkshire Hathaway today

Susan Dziubinski 7 September, 2021 | 9:34AM
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Buffett and Munger

Berkshire Hathaway (BRK.B) (BRK.A) has recently released the latest list of its portfolio holdings. Morningstar's resident Berkshire specialist Gregg Warren noted that it was a net seller of equities during the quarter. We think most of Berkshire's holdings are fairly to overvalued today - including the names the firm added to last quarter. But there are four names that weren't trimmed during the quarter that we still think are undervalued today. Here are our analysts' latest stock analyst notes about each.

Amazon (4 Stars, Wide Moat)

"Wide-moat Amazon reported second-quarter results that were within its guidance range but were slightly short of investor expectations for both revenue and operating profit. Guidance for the third quarter is also light compared with FactSet consensus. In short, consumers' online shopping levels are returning to more normal levels as they shift some spending to other entertainment sources and offline shopping. Meanwhile, the company continues to add capacity at a breakneck pace in order to meet customer demand and one-day delivery, even as it roughly doubled its footprint during the past 18 months. We see no cracks in the long-term story as Amazon remains well-positioned to prosper from the secular shift toward e-commerce and the public cloud over the next decade. We note revenue weakness was limited to Amazon's own online store segment, with other segments performing well and overall profitability impressive despite lower revenue. Our model changes are fairly modest, thus we are maintaining our US$4,200 per share fair value estimate and see shares as undervalued.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Amazon.com Inc3,437.36 USD0.00Rating
Berkshire Hathaway Inc Class A420,566.00 USD0.00Rating
Berkshire Hathaway Inc Class B279.09 USD0.00Rating
Teva Pharmaceutical Industries Ltd ADR8.16 USD0.00Rating
The Kraft Heinz Co33.25 USD0.00Rating
Wells Fargo & Co48.91 USD0.00Rating

About Author

Susan Dziubinski  Susan Dziubinski is senior product manager with Morningstar.com.