The renowned investor Warren Buffett recently engaged in seven new stock acquisitions during the second quarter of 2024, offering a variety of opportunities for value-focused investors. In Q2, he took new stakes in only two companies: the aerospace and electronics firm Heico and the beauty retailer Ulta Beauty.
Additionally, Buffett procured 7.26 million more shares of Occidental Petroleum, elevating it to the position of Berkshire’s sixth-largest investment. He also expanded Berkshire’s investment in the major insurer Chubb by adding 1.11 million shares, following last year’s establishment of a stake in Chubb, which now stands as Berkshire’s ninth-largest holding.
Furthermore, Buffett purchased shares of both Class A and Class C of Liberty SiriusXM Group, signifying Liberty Media’s involvement with Sirius XM Holdings.
Buffett’s attractive stock selections
Moreover, he acquired 96.2 million shares of Sirius XM, increasing Berkshire’s ownership in the satellite radio and podcasting enterprise by more than 262%.
Value investors might find notable interest in the various stocks Buffett acquired in Q2. Sirius XM is currently trading at just under 12 times its forward earnings, Chubb’s forward earnings ratio stands at 11.9, and Occidental Petroleum is even more appealing at just 11 times forward earnings. Among Buffett’s Q2 acquisitions, the highlighted contenders for value investors would likely have been Liberty SiriusXM Group Class A and Class C shares, trading at slightly over 6.5 times forward earnings.
However, following a merger between Sirius XM Holdings and Liberty SiriusXM Group, along with a 1-for-10 stock split, these stocks are no longer available for investment. With Liberty SiriusXM Group shares now off the table, Occidental emerges as the prime option for value investors. In addition to its attractive valuation, Occidental’s commitment to direct air capture technology could potentially bring substantial long-term advantages.
In summary, Buffett’s latest stock selections offer various promising choices for value investors, with Occidental Petroleum emerging as the most attractive based on current valuation metrics and future prospects.
