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Susan Dziubinski: I’m Susan Dziubinski with Morningstar. Berkshire Hathaway BRK.A BRK.B won’t be releasing its fourth-quarter 13F for a few weeks. But we do know from other regulatory filings that Warren Buffett and his team were buyers of at least three stocks during the market pullback in mid-December.
Warren Buffett Bought These 3 Stocks. Only 2 of Them Are Buys Today
Occidental Petroleum OXYSirius XM SIRIVeriSign VRSN
Buffett and his team added to Berkshire’s stake in Occidental Petroleum OXY in December. Oxy is one of the world’s largest independent oil and gas producers, and Berkshire owns about 28% of the company’s shares. The stock finished 2024 down 16% as supply concerns pressured oil prices. And oversupply risks persist today. But in a recent analyst note, Morningstar said it was encouraged by Oxy’s strengthening balance sheet. The stock looks undervalued according to Morningstar: We think Oxy stock is worth $62.
Read Morningstar’s full report on Occidental Petroleum.
Berkshire also added to its existing position in Sirius XM SIRI last month; Berkshire owns more than a third of the company. A few months ago, Morningstar downgraded its economic moat rating on Sirius XM to none from narrow. The downgrade reflects our opinion that Sirius XM is facing greater competition from music streaming services, which allow users to mimic Sirius XM’s in-vehicle experience without the need for satellite technology or customized radios. But even so, shares of Sirius XM look undervalued to Morningstar today. We think shares are worth $30 apiece.
Read Morningstar’s full report on Sirius XM.
And finally, Berkshire added to its stake in VeriSign VRSN in December; Berkshire has a 13% stake in the company. VeriSign is very much a classic Buffett play in that it maintains a monopoly position: It’s the sole authorized registry for several generic top-level domains, including the widely used .com and .net domains that are essential to the basic functioning of the internet. Morningstar thinks the company has carved out a wide economic moat. Though we like the company, we think investors should wait for a margin of safety before buying: We assign shares a fair value estimate of $195.
Read Morningstar’s full report on VeriSign.
For more stock ideas, be sure to subscribe to Morningstar’s channel and visit Morningstar.com.
Morningstar director Josh Aguilar and senior analysts Matthew Dolgin and Dan Romanoff provided the research behind this segment.
Watch 2 Cheap Stocks for Contrarians to Buy in 2025 for more from Susan Dziubinski.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
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