Warren Buffett bought his first shares of stock at age 11 back in 1941. Over the next 83 years, the “Oracle of Omaha” has used his value investing prowess to amass a fortune worth about $138 billion, even after donating more than $56 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:
| Stock | Implied Upside from July 15 close |
| Apple Inc. (AAPL) | 2.4% |
| American Express Co. (AXP) | 18.9% |
| Coca-Cola Co. (KO) | 7.2% |
| Chevron Corp. (CVX) | 22.1% |
| Occidental Petroleum Corp. (OXY) | 21.0% |
| Moody’s Corp. (MCO) | 3.0% |
| Kraft Heinz Co. (KHC) | 27.0% |
| Chubb Ltd. (CB) | 16.1% |
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 44.3% of Buffett’s total portfolio, and his $185 billion Apple stake is more than four times larger than his second-largest investment. Analyst Angelo Zino says Apple has an improving margin profile, expanding addressable market, massive global ecosystem and numerous AI technology opportunities. CFRA has a “buy” rating and $240 price target for AAPL stock, which closed at $234.40 on July 15.
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 has top-tier credit quality and a world class management team with a strong track record of impressive execution. Yokum says the digital payments industry as a whole has an attractive growth profile, and he projects between 7% and 8% compound annual revenue growth in coming years. He says American Express should outgrow its major competitors thanks in part to its popularity among younger customers. CFRA has a “strong buy” rating and $290 price target for AXP stock, which closed at $244 on July 15.
Coca-Cola Co. (KO)
Coca-Cola is a leading non-alcoholic beverage company and is one of Buffett’s longest-standing investments. In fact, he first bought Coca-Cola shares all the way back in 1988. Coca-Cola shares have stagnated in the past 10 years, but analyst Garrett Nelson says the stock’s underperformance is a buying opportunity given Cola-Cola’s impressive total return potential and valuable global brands. Nelson says the resolution of an ongoing Internal Revenue Service tax case could cost Coca-Cola as much as $12 billion, but he says it would also remove a major overhang. CFRA has a “buy” rating and $68 price target for KO stock, which closed at $63.41 on July 15.
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Chevron Corp. (CVX)
Chevron is a global oil major that operates exploration and production, refining, 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 if Chevron wins its arbitration process. Glickman says Chevron has several key catalysts ahead by 2025, including projects in the Permian Basin, the Gulf of Mexico, the DJ Basin and Kazakhstan. Chevron also has more exposure to domestic natural gas than Exxon Mobil Corp. (XOM) and is benefiting from a rebound in gas prices. CFRA has a “buy” rating and $193 price target for CVX stock, which closed at $158.04 on July 15.
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 bankroll Occidental’s $38 billion acquisition of Anadarko Petroleum back in 2019. Glickman says Occidental’s risky takeover of Anadarko has paid off thanks to a rebound in energy prices, which has allowed Occidental to repair its balance sheet. Occidental is doubling down with a $12 billion buyout of CrownRock, but divestment of its stake in Western Midstream Partners LP (WES) could help Occidental reduce debt levels. CFRA has a “buy” rating and $75 price target for OXY stock, which closed at $62 on July 15.
Moody’s Corp. (MCO)
Moody’s provides credit ratings, analytics, financial data and other research services for the financial industry. Yokum says elevated interest rates around the world drove Moody’s transaction-related revenue down to just 31% of total revenue in 2023. However, he anticipates a surge in maturing corporate rated debt will need to be replaced through 2025, which could drive a rebound in transaction-related revenue. Meanwhile, Yokum says Moody’s recurring revenue maintained steady growth throughout the COVID-19 pandemic and post-pandemic economic recovery. He projects 14% revenue growth in 2024. CFRA has a “buy” rating and $460 price target for MCO stock, which closed at $446.70 on July 15.
Kraft Heinz Co. (KHC)
Kraft Heinz is one of the world’s largest consumer packaged food and beverage companies. Berkshire first acquired an 8% 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 is taking the right steps to set the company up for a return to growth in 2024 and beyond, including investments in emerging markets. CFRA has a “buy” rating and $41 price target for KHC stock, which closed at $32.29 on July 15.
Chubb Ltd. (CB)
Chubb is the world’s largest publicly traded property and casualty insurance company. Buffett took a massive new stake in Chubb in the first quarter of 2024, adding to his sizable exposure to the insurance industry. Analyst Catherine Seifert says Chubb is attractively valued, and its pricing leverage could serve as a bullish catalyst. Despite higher catastrophe claims, Seifert says moderating claim costs are encouraging. She says the combination of a strong pricing environment, growing demand and Chubb’s track record as a top-tier underwriter positions the stock to outperform. CFRA has a “buy” rating and $302 price target for CB stock, which closed at $260.20 on July 15.
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8 Best Warren Buffett Stocks to Buy in 2024 originally appeared on usnews.com
Update 07/16/24: This story was previously published at an earlier date and has been updated with new information.
