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 $141 billion, even after donating more than $60 billion to charity. Buffett’s discipline and common-sense value investing has consistently made Berkshire Hathaway Inc. (ticker: BRK.B, BRK.A) a strong performer throughout the decades.
[Sign up for stock news with our Invested newsletter.]
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:
— Apple Inc. (AAPL)
— American Express Co. (AXP)
— Moody’s Corp. (MCO)
— Kraft Heinz Co. (KHC)
— Chubb Ltd. (CB)
— Citigroup Inc. (C)
— Visa Inc. (V)
— Mastercard Inc. (MA)
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 nearly 30% of Buffett’s total portfolio, and his $89 billion Apple stake is more than twice the size of his second-largest investment. Analyst Angelo Zino is bullish on Apple’s on-device artificial intelligence opportunities, global ecosystem and massive addressable market. CFRA has a “buy” rating and $260 price target for AAPL stock, which closed at $222.50 on Sept. 13.
American Express Co. (AXP)
American Express is a financial services company that specializes in credit cards, digital payments and travel services. It is also one of Buffett’s longest-standing investments. In fact, he first bought American Express shares all the way back in 1991. Analyst Alexander Yokum projects at least 7% compound annual revenue growth in the payments industry in coming years, and he says American Express has a track record of impressive execution. The company is particularly well positioned because of its popularity among younger customers that tend to have higher spending growth. CFRA has a “buy” rating and $295 price target for AXP stock, which closed at $259 on Sept. 13.
Moody’s Corp. (MCO)
Moody’s provides credit ratings, analytics, financial data and other research services for the financial industry. Yokum says the credit-rating industry is a large and fast-growing industry dominated by Moody’s and just two other players that account for a combined 80% market share. He says debt issuance has rebounded in 2024 and projects 2025 will be a record year for debt issuance. Yokum says falling interest rates will be good news for Moody’s because corporations have delayed debt issuance in recent years because rates are too high. CFRA has a “buy” rating and $560 price target for MCO stock, which closed at $476.96 on Sept. 13.
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 Heinz is making the right moves to restructure its business and return to impressive growth numbers in 2024 and beyond. CFRA has a “buy” rating and $41 price target for KHC stock, which closed at $35.59 on Sept. 13.
[7 Best Monthly Dividend ETFs to Buy Now]
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 has an opportunity to leverage pricing strength and should benefit from a moderation in overall claim costs. Seifert says Chubb is a top-tier underwriter that can take advantage of a favorable pricing environment and elevated coverage demand. She also says Buffett’s investment is a valuable vote of confidence. CFRA has a “buy” rating and $302 price target for CB stock, which closed at $288.87 on Sept. 13.
Citigroup Inc. (C)
Citigroup is a diversified financial company that provides a wide range of banking and other services to global customers. In recent years, Buffett has been dialing back exposure to bank stocks. He has reduced or eliminated stakes in Bank of America Corp. (BAC), Goldman Sachs Group Inc. (GS), Wells Fargo & Co. (WFC), JPMorgan Chase & Co. (JPM) and other banks. However, he hasn’t been selling off his $3.2 billion stake in Citigroup. Analyst Kenneth Leon says Citigroup has attractive growth opportunities in institutional markets and is successfully improving its transparency and consistency. CFRA has a “buy” rating and $73 price target for C stock, which closed at $57.67 on Sept. 13.
Visa Inc. (V)
Visa is a global credit card leader and owner of the world’s largest electronic payment network. Yokum says Visa has benefited from rising worldwide acceptance of its cards, and the company is one of the most innovative in the entire financial sector. In addition, Visa has a massive $20 trillion global addressable market, and Yokum says it will capitalize on the ongoing shift to a cashless economy. While U.S. payment volume growth will likely remain low, Yokum says international payments and cross-border volumes will support overall growth. CFRA has a “buy” rating and $310 price target for V stock, which closed at $287.35 on Sept. 13.
Mastercard Inc. (MA)
Mastercard is one of the world’s largest credit card and payments providers. When Buffett is bullish on a particular investment theme, he has a history of diversifying his exposure by betting on several different market leaders in that industry. Clearly, Buffett is bullish on credit card companies given Berkshire’s large exposure to Mastercard, Visa, American Express and others. Yokum says Mastercard’s management team is highly innovative and the company has a history of impressive execution. He says the company has opportunities to significantly expand operating margin. CFRA has a “buy” rating and $560 price target for MA stock, which closed at $493.36 on Sept. 13.
More from U.S. News
7 High-Return, Low-Risk Investments for Retirees
7 Best Investments During a Recession
9 ETFs to Buy When Interest Rates Fall
8 Best Warren Buffett Stocks to Buy in 2024 originally appeared on usnews.com
Update 09/16/24: This story was previously published at an earlier date and has been updated with new information.
