3 bargains in Berkshire's portfolio

This trio of stocks in Berkshire Hathaway are undervalued according to our metrics

Susan Dziubinski 17 December, 2019 | 1:35AM

Warren Buffett holding cards

Last month, Berkshire Hathaway (BRK.A) (BRK.B) filed its third-quarter holdings (13-F). As Morningstar's sector strategist (and resident Berkshire specialist) Gregg Warren noted, Occidental Petroleum (OXY) dominated the equity purchase activity during the quarter, and Berkshire's pickup of luxury retailer Restoration Hardware (RH) made headlines.

However, neither of these stocks is trading in buying range today by our measures: Occidental is trading at 3-star levels, suggesting shares are fairly valued when adjusted for their uncertainty risk; RH is a 2-star stock, which means it's overvalued today. In fact, most of the companies Berkshire owns are fairly to slightly overvalued. It's no wonder: If Warren Buffett and his managers like these stocks, other investors inevitably will, too.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Berkshire Hathaway Inc Class A315,206.00 USD-0.05
Berkshire Hathaway Inc Class B210.18 USD0.06
DaVita Inc89.61 USD-0.10
General Motors Co35.77 USD0.48
Occidental Petroleum Corp9.66 USD-4.07
RH363.00 USD-0.83
The Kraft Heinz Co31.44 USD-1.72

About Author

Susan Dziubinski

Susan Dziubinski  Susan Dziubinski is director of content for Morningstar.com.

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies