Warren Buffett bought his first shares of stock at age 11 back in 1941. In the following 83 years, the “Oracle of Omaha” used his value investing prowess to amass a fortune worth about $121 billion, even after donating more than $55 billion to charity.
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Buffett’s discipline and common-sense value investing has 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 2024, according to CFRA Research:
| Stock | Implied upside over Jan. 8 close |
| Apple Inc. (AAPL) | 13.2% |
| American Express Co. (AXP) | 8.3% |
| Coca-Cola Co. (KO) | 13.1% |
| Chevron Corp. (CVX) | 8.4% |
| Occidental Petroleum Corp. (OXY) | 23.6% |
| Kraft Heinz Co. (KHC) | 4.6% |
| Moody’s Corp. (MCO) | 6.5% |
| Visa Inc. (V) | 10.5% |
Apple Inc. (AAPL)
Apple produces the iPhone, iPad, Apple Watch, Mac computers and other devices. In addition, its services segment includes its App Store, Apple Music, iCloud and licensing businesses. Not only is Apple Berkshire’s largest public stock holding, it’s not even close. Apple represents about 47% of Buffett’s total portfolio, and his $168 billion Apple stake is nearly five times larger than his second-largest investment. Analyst Angelo Zino says Apple has a strong management team, generates impressive free cash flow and has an aggressive capital allocation strategy. CFRA has a “buy” rating and $210 price target for AAPL stock, which closed at $185.56 on Jan. 8.
American Express Co. (AXP)
American Express is a financial services company that specializes in credit cards, digital payments and travel services. Analyst Alexander Yokum says American Express’ credit profile has improved, and its net charge-offs are now below pre-pandemic levels. In addition, Yokum says American Express’ expense pressures have eased and long-term growth drivers remain intact, creating a bullish earnings growth profile. He says American Express products have begun to resonate with millennial and Gen Z customers. Berkshire holds 151.6 million shares of American Express worth about $28.4 billion. CFRA has a “strong buy” rating and $205 price target for AXP stock, which closed at $189.21 on Jan. 8.
Coca-Cola Co. (KO)
Coca-Cola is a leading non-alcoholic beverage company and is one of Buffett’s oldest investments, which he first bought back in 1988. Coca-Cola shares have stagnated in the past two years, but analyst Garrett Nelson says the weakness is a buying opportunity given the company’s strong brands, impressive capital return program and solid growth outlook. In addition, Nelson says improving emerging market sales and new product launches will support top-line momentum. Berkshire holds 400 million shares of Coca-Cola worth about $24 billion. CFRA has a “strong buy” rating and $68 price target for KO stock, which closed at $60.11 on Jan. 8.
Chevron Corp. (CVX)
Chevron is a global oil major that operates exploration and production, refining and marketing, and petrochemical businesses. Analyst Stewart Glickman says Chevron’s $58 billion acquisition of Hess Corp. (HES) will add long-cycle oil exposure to its portfolio, while Chevron’s $7.6 billion acquisition of PDC Energy will enhance its short-cycle exposure. In 2024, Glickman anticipates key developments for Chevron in Australian liquefied natural gas (LNG), the Permian Basin, the DJ Basin, the deep-water Gulf of Mexico and Kazakhstan. Berkshire holds 110.2 million shares of Chevron worth about $16.2 billion. CFRA has a “buy” rating and $162 price target for CVX stock, which closed at $149.50 on Jan. 8.
[READ: 8 Best Warren Buffett Quotes of All Time]
Occidental Petroleum Corp. (OXY)
Occidental Petroleum is one of the largest U.S. oil and gas companies, and Buffett has held a stake in Occidental since Berkshire helped fund Occidental’s $38 billion acquisition of Anadarko Petroleum back in 2019. Glickman says the recovery in global energy prices in recent years has allowed Occidental to shore up its balance sheet and reduce risk for investors. In addition, he is bullish on the company’s majority ownership stake of Western Midstream Partners LP (WES). Berkshire holds 243.7 million OXY shares worth about $14 billion. CFRA has a “buy” rating and $72 price target for OXY stock, which closed at $58.27 on Jan. 8.
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 one of the world’s largest food companies. Despite its recent underperformance, analyst Arun Sundaram says Kraft Heinz is taking the appropriate steps to right the ship. Berkshire holds 325.6 million shares of Kraft Heinz worth about $12.5 billion. CFRA has a “buy” rating and $40 price target for KHC stock, which closed at $38.25 on Jan. 8.
Moody’s Corp. (MCO)
Moody’s provides credit ratings, analytics, financial data and other research services for the financial industry. Yokum anticipates a multiyear rebound in debt issuance, which will serve as a Moody’s earnings tailwind that he says Wall Street does not fully appreciate. In addition to predicting a corporate debt issuance boom, Yokum says Moody’s analytics segment should benefit from banking industry demand for data insights and risk assessment services. He projects 11% revenue growth in 2024. Berkshire holds 24.6 million shares of Moody’s worth about $9.2 billion. CFRA has a “buy” rating and $400 price target for MCO stock, which closed at $375.70 on Jan. 8.
Visa Inc. (V)
Payments leader Visa is another stock that both Buffett and Wall Street analysts love. Buffett took a huge stake in Visa back in 2011 and has maintained a position ever since. Yokum says Visa’s business model is balanced across different payment categories, insulating it from macroeconomic cyclicality and allowing the company to generate sustainable revenue and earnings growth over time. In the long term, he says Visa’s scale and competitive positioning should help it boost operating leverage. Berkshire holds 8.2 million shares of Visa worth $2.2 billion. CFRA has a “buy” rating and $290 price target for V stock, which closed at $262.54 on Jan. 8.
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8 Best Warren Buffett Stocks to Buy in 2024 originally appeared on usnews.com
Update 01/09/24: This story was previously published at an earlier date and has been updated with new information.
