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4 Cheap Stocks From Berkshire's Latest Buys

4 Cheap Stocks From Berkshire's Latest Buys

This week, we got a glimpse into what stocks Warren Buffett's Berkshire Hathaway was buying and selling in the third quarter.

There were some surprises, mainly that the firm only added $100 million to its Apple stake and instead deployed almost $14 billion to buy shares of several financial services firms while also taking a new $2 billion stake in Oracle.

Of the stocks added to in the quarter, Morningstar's equity analysts think that four are undervalued, trading in 4-star territory today.

Those are wide-moat Bank of New York Mellon, no-moat General Motors, narrow-moat Goldman Sachs, and narrow-moat Travelers Companies.

On the sales side, Berkshire exited out of stakes in Walmart and Sanofi while also shedding some shares of Phillips 66, Wells Fargo, Charter Communications, and several airlines.

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About the Author

Greggory Warren

Strategist
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Greggory Warren, CFA, is a strategist for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers the traditional U.S.-and Canadian-based asset managers, as well as Berkshire Hathaway.

Before assuming his current role in 2017, Warren covered the financial-services sector as a senior analyst since late 2008. Prior to that time, he covered non-alcoholic beverage manufacturers and distributors, packaged food firms, food service distributors, and tobacco companies. Before joining Morningstar in 2005, Warren worked as a buy-side equity analyst for more than seven years, covering consumer staples and consumer cyclicals.

Warren holds a bachelor's degree in accounting and English from Augustana College. He also holds the Chartered Financial Analyst® designation and is a member of the CFA Society of Chicago. During 2014-19, Warren was selected to participate on the analyst panel at Berkshire Hathaway’s annual meeting, asking questions directly of Warren Buffett and Charlie Munger. The analyst panel was disbanded ahead of Berkshire’s 2020 annual meeting. Warren also ranked second in the investment services industry in The Wall Street Journal’s annual “Best on the Street” analysts survey in 2013, the last year the survey was conducted.

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