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
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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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Berkshire Hathaway Inc Class A418,101.00 USD-0.07Rating
Berkshire Hathaway Inc Class B277.87 USD-0.09Rating
DaVita Inc121.00 USD-0.90Rating
General Motors Co52.23 USD0.60Rating
Occidental Petroleum Corp28.10 USD0.50Rating
RH686.68 USD0.07Rating
The Kraft Heinz Co36.39 USD0.22Rating

About Author

Susan Dziubinski

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

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