When it comes to Wall Street legends, Warren Buffett is the GOAT . As the mastermind behind Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), heโs racked up a staggering 5,600,000% cumulative return since the โ60s! But waitโwhatโs this? While heโs throwing out warnings about a pricey stock market, heโs still swooping in on some serious stocks. Letโs break it down!
Cash Pile & Caution: Whatโs Cooking?
Over the last seven quarters, our man Warren and his investment squad, Todd Combs and Ted Weschler, have sold $132 billion more in stocks than theyโve bought. As of June 30, Berkshireโs cash stash hit a record $276.9 billion! Sounds like a cautionary tale, right? But guess what? There are still a few gems that caught Buffettโs eye.
Sirius XM Holdings: The Satellite Superstar
First up, letโs vibe with Sirius XM Holdings (NASDAQ: SIRI). Between Oct. 9 and Oct. 11, Buffett snatched up 3.56 million shares, boosting his stake to a whopping 108.7 million shares! As the only licensed satellite-radio operator, Sirius XM is living the monopoly life.
Why does Buffett dig it? Because 77% of its revenue comes from subscriptions, meaning more cash flow with less drama. Plus, the stock is valued at less than 8 times forward earnings!
Occidental Petroleum: The Oil Titan
Next, we have Occidental Petroleum (NYSE: OXY), where Buffettโs invested over $13 billion. Heโs betting big that oil prices will stay high, and honestly, heโs not wrong. With a slick debt reduction strategy and macro factors favoring oil prices, itโs a solid pick. Plus, Buffett holds warrants for 83.8 million shares! Talk about confidence!
Chubb: The Boring But Brilliant Insurer
Buffettโs third favorite? Chubb (NYSE: CB). This property and casualty insurer is where the real magic happens! Between July 2023 and June 2024, Buffett bought more than 27 million shares, totaling about $8.2 billion. Insurance may be boring, but Chubb knows how to ride the premium wave.
With rising Treasury yields, Chubbโs getting a nice interest income boost, making it a win-win for our investing wizard!
Berkshire Hathaway: The Crown Jewel
And of course, we canโt forget about Buffettโs own company! Heโs been on a buying spree, investing $78 billion into Berkshire stock over the past 24 quarters. With new buyback rules, heโs all about that value-boosting life!
Invest smart, stay cool, and happy trading!