Investing like Warren Buffett requires patience and a keen eye for undervalued gems. With his impressive track record, it’s no wonder investors seek to mimic his portfolio. Berkshire Hathaway, Buffett’s holding company, boasts an impressive collection of over 40 stocks, with some having been part of his portfolio for decades. Two of these stocks, in particular, are flashing “buy” signals.
One such stock is BYD, a Chinese electric-vehicle (EV) giant that has defied the industry’s slowdown. While its peers struggle, BYD has recorded four consecutive months of record deliveries, with sales surging 32% year-over-year in September. As the largest new energy vehicle (NEV) player in China, commanding a 37% market share, BYD’s scale and foothold in the world’s largest passenger EV market are unmatched. Moreover, its vertical integration as the world’s second-largest EV battery producer has helped it avoid battery cost hurdles. Berkshire Hathaway has held a stake in BYD since 2008, and despite trimming its position, the stock has generated substantial returns.
The other screaming buy is Occidental Petroleum, an energy stock that has taken a hit due to falling crude oil prices. However, its recent acquisition of CrownRock has expanded its footprint in the Permian and Midland Basins, making it immediately accretive to its free cash flow. Occidental plans to divest assets worth $4 billion to $6.5 billion within 18 months, using the proceeds to cut debt and increase dividends. With a significant stake in Occidental, Berkshire Hathaway has demonstrated its confidence in the company’s potential. As the oil stock hovers near its 52-week lows, now may be the perfect time to buy.
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