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Berkshire Hathaway Stock Portfolio: 10 Cheapest Stocks

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·6 min read
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In this article, we discuss the best cheap stocks to buy in Warren Buffett's 13F portfolio. You can skip our detailed analysis of the billionaire's hedge fund, and go directly to read Berkshire Hathaway Stock Portfolio: 5 Cheapest Stocks.

Warren Buffett is currently serving as the chairman and CEO of his hedge fund, Berkshire Hathaway. His fund holds stakes in some of the biggest companies, including Apple Inc. (NASDAQ:AAPL), The Coca-Cola Company (NYSE:KO), Bank of America Corporation (NYSE:BAC), General Motors Company (NYSE:GM), Visa Inc. (NYSE:V), and Mastercard Incorporated (NYSE:MA). In the past 14 months, the hedge fund gained over $1.7 billion on its $2.1 billion stake in Bank of America Corp.

Buffett's value-based investment strategy helped him generate positive returns over the years. For example, from 1965 to 2020, Berkshire Hathaway’s annual average return stood at 20%, compared with a 10.2% average return of the S&P 500 during the same time period.

As of Q2, Berkshire Hathaway invests in technology, finance, consumer goods, and healthcare among other sectors. The hedge fund’s 13F portfolio as of the second quarter is concentrated around 44 companies, with the first five holdings making up 76% of the portfolio.

In this article, we will focus on the cheap stocks in Buffett’s portfolio as of Q2.

Why pay attention to hedge fund sentiment while choosing stocks?

Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by wide margins. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Our Methodology:

Let's analyze our list of the best cheap stocks to buy. For this list, we considered Berkshire Hathaway's 13F portfolio for Q2. The stocks are ranked according to their position in the hedge fund's portfolio.

Berkshire Hathaway stock portfolio: 10 Cheapest Stocks

10. Liberty Latin America Ltd. (NASDAQ:LILA)

Berkshire Hathaway’s Stake Value: $36,463,000

Percent of Berkshire Hathaway’s 13F Portfolio: 0.01%

Number of Hedge Fund Holders: 27

Share Price as of October 20: $12.76

Liberty Latin America Ltd. (NASDAQ:LILA) stands tenth on our list of the best cheap stocks to buy according to Warren Buffett. This August, the company completed its acquisition of the Costa Rica operations of the Spanish telecommunications company, Telefonica.

Liberty Latin America Ltd. (NASDAQ:LILA) is an American telecommunications company that also offers entertainment services to its consumers. As of Q2, Berkshire Hathaway holds over 2.6 million shares of Liberty Latin America Ltd. (NASDAQ:LILA), valued at $36.4 million. The company represents 0.01% of the hedge fund’s 13F portfolio.

In Q2, 27 hedge funds tracked by Insider Monkey reported having stakes in Liberty Latin America Ltd. (NASDAQ:LILA), compared with 29 in the previous quarter. The total value of these stakes is $556.8 million.

9. Organon & Co. (NYSE:OGN)

Berkshire Hathaway’s Stake Value: $46,918,000

Percent of Berkshire Hathaway’s 13F Portfolio: 0.01%

Number of Hedge Fund Holders: 44

Share Price as of October 20: $36.15

Jason Gerberry of BofA noted the position of Organon & Co. (NYSE:OGN), the American pharmaceutical company, in the women’s health business and expects the company to grow in the coming quarters. In September, the firm initiated its coverage on the stock with a Buy rating and a $43 price target. Founded in 2020, Organon & Co. (NYSE:OGN) remains one of the best cheap stocks to buy according to Warren Buffett.

Kahn Brothers is the leading shareholder of Organon & Co. (NYSE:OGN) in Q2, with shares worth $2.1 billion. In addition to this, 44 hedge funds tracked by Insider Monkey reported having positions in the company in Q2, valued at $427.8 million.

In Q2, Berkshire Hathaway started building its position in Organon & Co. (NYSE:OGN) with over 1.5 million shares, valued at $46.9 million. The company represents 0.01% of the hedge fund’s 13F portfolio.

8. Liberty Global plc (NASDAQ:LBTYA)

Berkshire Hathaway’s Stake Value: $50,741,000

Percent of Berkshire Hathaway’s 13F Portfolio: 0.01%

Number of Hedge Fund Holders: 30

Share Price as of October 20: $28.44

In Q2 2021, Warren Buffett’s Berkshire Hathaway holds over 1.8 million shares in Liberty Global plc (NASDAQ:LBTYA), worth $50.7 million. The company accounts for 0.01% of the hedge fund’s 13F portfolio.

This September, Jefferies upgraded Liberty Global plc (NASDAQ:LBTYA) to Buy rating with a $36.40 price target. The firm’s analyst showed confidence in the company’s generation of free cash flow, which he expects to double over in the next three years.

Baupost Group is the leading shareholder of Liberty Global plc (NASDAQ:LBTYA) in Q2, with shares worth $1.4 billion. Overall, 30 hedge funds tracked by Insider Monkey reported having stakes in the company in Q2, compared with 35 in the previous quarter. The total value of these stakes is $806.4 million.

Like Apple Inc. (NASDAQ:AAPL), The Coca-Cola Company (NYSE:KO), Bank of America Corporation (NYSE:BAC), General Motors Company (NYSE:GM), Visa Inc. (NYSE:V), and Mastercard Incorporated (NYSE:MA), investors are also paying attention to Liberty Global plc (NASDAQ:LBTYA) in 2021.

7. Sirius XM Holdings Inc. (NASDAQ:SIRI)

Berkshire Hathaway’s Stake Value: $285,529,000

Percent of Berkshire Hathaway’s 13F Portfolio: 0.09%

Number of Hedge Fund Holders: 26

Share Price as of October 20: $6.20

Sirius XM Holdings Inc. (NASDAQ:SIRI) presented a positive hedge fund sentiment in Q2, as 26 hedge funds tracked by Insider Monkey reported having stakes in the company, up from 24 in the previous quarter. These stakes are valued at $577.5 million. An American broadcasting company, Sirius XM Holdings Inc. (NASDAQ:SIRI) remains one of the best cheap stocks to buy according to Warren Buffett.

In Q2, Berkshire Hathaway holds over 43.6 million shares in Sirius XM Holdings Inc. (NASDAQ:SIRI), valued at over $285.5 million. The company represents 0.09% of the hedge fund’s 13F portfolio.

This July, Citigroup lifted its price target on Sirius XM Holdings Inc. (NASDAQ:SIRI) to $7.65, with a Buy rating on the shares.

6. Teva Pharmaceutical Industries Limited (NYSE:TEVA)

Berkshire Hathaway’s Stake Value: $423,615,000

Percent of Berkshire Hathaway’s 13F Portfolio: 0.14%

Number of Hedge Fund Holders: 22

Share Price as of October 20: $10.13

Teva Pharmaceutical Industries Limited (NYSE:TEVA) is an Israeli multinational pharmaceutical company.

In Q2 2021, Teva Pharmaceutical Industries Limited (NYSE:TEVA) posted an EPS of $0.59, in line with the estimates. The company’s revenue for the quarter stood at $3.9 billion, up 0.8% from the prior-year quarter.

In Q2, Berkshire Hathaway holds over 42.7 million shares in Teva Pharmaceutical Industries Limited (NYSE:TEVA), valued at $423.6 million. The company represents 0.14% of the hedge fund’s 13F portfolio.

Of the 873 elite funds tracked by Insider Monkey, 22 hedge funds have stakes in Teva Pharmaceutical Industries Limited (NYSE:TEVA) in Q2, down from 24 in the previous quarter. The total worth of these stakes is $947.1 million.

Click to continue reading and see Berkshire Hathaway stock portfolio: 5 Cheapest Stocks.

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Disclosure. None. Berkshire Hathaway Stock Portfolio: 10 Cheapest Stocks is originally published on Insider Monkey.