From Morningstar: 2024-11-18 08:17:46

Warren Buffett’s Berkshire Hathaway released its 13F for the third quarter of 2024, showing significant stock sales, including Bank of America and Apple. Berkshire closed the quarter with a record $325.2 billion in cash. Buffett’s team initiated positions in Domino’s Pizza and Pool, while adding to its Heico stake. Berkshire also bought more Sirius XM shares. Berkshire scaled back its Apple position and completely sold out of Floor & Decor.

Speculation surrounds Berkshire’s stock sales and cash buildup. Berkshire did not repurchase its own shares, possibly preparing for a market correction or acquisition. Buffett may be focusing on his legacy and shareholder engagement. Three undervalued stocks in Berkshire’s portfolio include Ally Financial, Kraft Heinz, and Verisign. Berkshire owns significant stakes in these companies, which are trading below fair value estimates.

Ally Financial, a credit services company, faces headwinds but is expected to outperform thanks to improved funding and business focus. Kraft Heinz, a packaged foods manufacturer, is investing in long-term growth, offering value for investors. Verisign, a software-infrastructure company, maintains a wide moat position and shows solid profitability. These stocks are considered undervalued and present buying opportunities.



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