Warren Buffett doesn't consider stock prices when buying. Please note that the famed investor evaluates stock prices when buying for Berkshire Hathaway. A stock with a high share price can be undervalued, and vice versa. Many investors care about share prices since they have little money to buy equities. Can Buffett's stocks yield exceptional picks? Absolutely. The greatest $100 Buffett investments to purchase now.
1. Any of Buffett's five Japanese stocks In his recent letter to Berkshire Hathaway shareholders, Buffett said he would own five Japanese equities "indefinitely." They are Mitsubishi (OTC: MSBHF), Mitsui (MITSF), Marubeni (MARUF), Itochu (ITOCF) (ITOCY), and Sumitomo.
U.S. buyers can acquire these stocks on OTC marketplaces for $17–$86. More important than their low share prices, most of these stocks have good price-to-earnings ratios. The cheapest stock is Sumitomo, selling below nine times earnings. Mitsubishi is the priciest with a P/E of 16.3.
These five stocks appeal to Buffett for the same reasons. These conglomerates conduct diverse companies in different industries. Each corporation pays dividends and buys back shares at favorable prices.
2. Buffett's top two bank stocks I included both of Buffett's biggest bank stocks because I couldn't choose. Citigroup (NYSE: C) shares cost just under $64, while Bank of America (NYSE: BAC) shares cost $38. I enjoy both—and Buffett, more importantly.
Bank of America is Berkshire Hathaway's second-largest holding at 10.5%. Shares at 11.7 times forward earnings are competitively priced. BofA pays above 2.5% dividends. Berkshire's 13th largest holding is Citigroup. A forward earnings multiple below 10.5 makes its shares cheaper than Bank of America. Citigroup's dividend yield exceeds 3.3%.
Both firms are well-run. Both invest considerably in tech. Bank of America won the Best Consumer Digital Bank in the U.S., World's Best Digital Bank, and World's Most Innovative Bank in 2023 for its tech efforts. a
3. Occidental Petroleum Buffett only acquired three stocks in Q4 2023. Oil stocks Chevron and Occidental Petroleum (NYSE: OXY). Chevron is too expensive to list because its share price is above $100. However, Occidental shares cost roughly $66. Buffett plans to hold it forever, like the five Japanese stocks.
Over $16.2 billion, Berkshire controls 28% of Occidental. The oil and gas business ranks sixth among Berkshire's major holdings. Buffett may keep buying Oxy shares at a furious pace. Berkshire received regulatory approval to buy up to 50% of Occidental in 2022.
Buffett told last year that Occidental CEO Vicki Hollub is "extremely competent" and "understands oil." Hollub's carbon capture investment leadership also impresses him. Hollub forecasts a late 2025 global oil scarcity. Occidental stock should rise if she's right. The stock may not stay below $100 for long.
View for more updates