Warren Buffett bought his first shares of stock at age 11 back in 1941. Over the next 81 years, the “Oracle of Omaha” used his value investing prowess to amass a fortune worth about $114 billion, even after donating more than $50 billion to charity.
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Buffett’s discipline and common-sense value investing have consistently made Berkshire Hathaway Inc. (ticker: BRK.A, BRK.B) a strong performer throughout the decades. The good news for the average investor is there’s no penalty for simply copying Buffett’s investment strategy.
Here are eight of the best Warren Buffett-owned stocks to buy in 2023, according to Morningstar:
| Stock | Implied upside over July 14 closing price |
| Bank of America Corp. (BAC) | 20.2% |
| Kraft Heinz Co. (KHC) | 47.8% |
| Citigroup Inc. (C) | 59.6% |
| Kroger Co. (KR) | 16.3% |
| General Motors Co. (GM) | 95% |
| Paramount Global (PARA) | 119.3% |
| Charter Communications Inc. (CHTR) | 54.5% |
| Snowflake Inc. (SNOW) | 27.8% |
Bank of America Corp. (BAC)
Bank of America is one of the largest U.S. commercial and investment banks and wealth management services providers. Buffett has long been a fan of bank stocks, and Bank of America is currently Berkshire’s largest bank stock holding and second-largest public stock holding of any kind. Analyst Eric Compton says Bank of America has one of the best networks of retail bank branches and is also a top-tier investment bank. Berkshire holds 1.03 billion shares of Bank of America worth about $30.3 billion. Morningstar has a “buy” rating and $35 fair value estimate for BAC stock, which closed at $29.11 on July 14.
Kraft Heinz Co. (KHC)
Kraft Heinz is one of the world’s largest consumer packaged food and beverage companies. Berkshire first acquired an 8.6% stake in Kraft Foods in 2008. Berkshire and partner 3G Capital announced a $23 billion buyout of Heinz in February 2013 and helped merge Kraft and Heinz to form the world’s fifth-largest food company at the time. Analyst Erin Lash says the company’s focus on marketing, innovation and product management is a winning recipe. Berkshire holds 325.6 million shares of Kraft Heinz worth about $12.6 billion. Morningstar has a “buy” rating and $53 fair value estimate for KHC stock, which closed at $35.85 on July 14.
Citigroup Inc. (C)
Citigroup is a diversified financial company that provides a wide range of banking and other services to global customers. Compton says Citi’s commercial banking operations, its Institutional Clients Group, is its most unique business unit. ICG gives Citigroup a unique international presence that Compton says makes the company the bank of choice for businesses with cross-border banking needs. ICG is also a complicated, high-cost business, but Citigroup has been divesting assets to simplify operations. Berkshire holds 55.2 million shares of Citigroup worth about $2.6 billion. Morningstar has a “buy” rating and $73 fair value estimate for C stock, which closed at $45.75 on July 14.
Kroger Co. (KR)
Kroger is one of the largest U.S. grocery retailers. Analyst Dan Wasiolek says Kroger’s private label products and impressive promotional capabilities are driving foot traffic and protecting the company’s margins. While the grocery industry remains highly competitive, Wasiolek says Kroger is leveraging its scale to identify efficiencies that allow it to maintain competitive prices. He says Kroger may be losing market share among lower-income customers but gaining it among higher-income shoppers. Berkshire holds 50 million shares of Kroger worth about $2.5 billion. Morningstar has a “buy” rating and $54 fair value estimate for KR stock, which closed at $46.44 on July 14.
[SEE: 9 Highest Dividend-Paying Stocks in the S&P 500]
General Motors Co. (GM)
General Motors is one of the largest legacy U.S. car and truck producers. GM recently reported second-quarter sales were up 18.8% year over year, while inventory levels were up 3.8% on a quarterly basis. Analyst David Whiston says Buick sales growth of 47.8% was particularly impressive, while Cadillac had its best second quarter since 2019. Whiston says GM has exceptional earnings potential and growth opportunities in autonomous vehicle technology, connectivity and data gathering. Berkshire holds 40 million GM shares worth about $1.5 billion. Morningstar has a “buy” rating and $78 fair value estimate for GM stock, which closed at $40 on July 14.
Paramount Global (PARA)
Paramount Global is a global entertainment company formed from the 2019 merger of Viacom and CBS. The company owns Paramount Pictures TV and movie studios, TV networks such as CBS and Comedy Central, and streaming platforms Paramount+ and Pluto TV. Paramount shares are down 47% since the beginning of 2022, but analyst Neil Macker says the company has valuable assets, including its production studios. Buffett seems to agree. Berkshire holds 93.7 million shares of Paramount Global worth about $2.1 billion. Morningstar has a “buy” rating and $35 fair value estimate for PARA stock, which closed at $15.96 on July 14.
Charter Communications Inc. (CHTR)
Charter Communications is one of the largest U.S. cable TV and internet providers. Charter reported a record 686,000 net new wireless customers in the first quarter, but analyst Michael Hodel says it’s uncertain just how many new Spectrum One customers will maintain their wireless service once the promotional period for new subscribers expires. Hodel says broadband will remain Charter’s core business and will be the company’s major long-term profit driver. Berkshire holds 3.8 million shares of Charter worth about $1.4 billion. Morningstar has a “buy” rating and $580 fair value estimate for CHTR stock, which closed at $375.47 on July 14.
Snowflake Inc. (SNOW)
Snowflake provides data storage, computing and analytics services via its cloud-based enterprise data platform. Buffett has historically shied away from high-profile initial public offerings, but he made an exception by investing in Snowflake’s 2020 IPO. So far, the Snowflake bet has been a profitable one, and analyst Julie Bhusal Sharma says accelerating data collection and demand for data storage and analytics make Snowflake a “best of breed” big data investment. Berkshire still holds 6.1 million Snowflake shares worth about $950 million. Morningstar has a “buy” rating and $231 fair value estimate for SNOW stock, which closed at $180.79 on July 14.
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8 Best Warren Buffett Stocks to Buy in 2023 originally appeared on usnews.com
Update 07/17/23: This story was previously published at an earlier date and has been updated with new information.
