Warren Buffett and analysts are of the opinion that you should own these 9 stocks. Which ones are they? | K&L Rock 1
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Warren Buffett and analysts are of the opinion that you should own these 9 stocks. Which ones are they?

Published by: 20.08.2021 13:37:07

When analysts and Buffett agree on owning a share of the S&P 500 index, it means you should pay attention. After all, Warren Buffet is famous for betting against Wall Street.


Buffett's Berkshire Hathaway (BRKB) owns stakes in nine stocks - General Motors (GM), Amazon.com (AMZN) and Chevron (CVX) - that analysts think will see as much as 20% upside over the next 12 months.

But analysts and Buffett can still agree on the potential of several S&P 500 stocks that Warren Buffett himself owns. 


Amazon.com: Buffett's Billion Dollar Deal


Amazon.com has a remarkable space in Buffett's portfolio. It is the most valuable stake in Berkshire Hathaway's portfolio, which analysts still think is more than 25%, something Berkshire has no plans to shrink.

Berkshire owned more than $1.7 billion worth of Amazon stock at the end of the second quarter. And Amazon is still holding up, even though the stock has barely moved this year. But analysts think Amazon stock should be worth 28.8% more in 12 months than it is now. It closed Tuesday at 3,241.96 and the analysts' target is 4,171.Do you think it's worth buying Amazon.com stock? Drop us a line. 


But it's important to note that Buffett isn't all that inclined to buy Amazon stock. Amazon represents just 0.6% of the U.S. stock list. Compare that to the whopping 43.5% he holds in Berkshire Apple (AAPL). Berkshire owns roughly 5.4% of Apple's stock, worth $133.3 billion. It's interesting that Berkshire is betting so much on Apple, even though analysts are predicting only 8.7% growth over the next 12 months. 

General Motors - Warren Buffet's stock title most favored by analysts

Analysts think the automaker's stock will be worth 71.87 in 12 months. If that's true, it would represent a more than 40% rise from Tuesday's closing value of 󈬢.47.”

It's true that Buffett lightened up on GM a bit during the second quarter by selling 7 million shares. But that's only about 10%. And after this year's 21.2% increase in GM's value, Buffett's position in GM is still worth more than $3 billion. That's still 4% of GM and makes up roughly 1% of the value of Berkshire's U.S. portfolio.

Similar to GM, analysts also like another title in Berkshire  - energy firm Chevron. Analysts estimate a 22% increase over the next 12 months. 

Notwithstanding this, Buffett sold off a significant portion of Chevron in the second quarter. Berkshire sold roughly half a million shares during the period. But let's not lose sight of the fact that this is a volume reduction of only 2.3% for a stock that has risen 19% this year. Berkshire still owns more than 23 million shares worth $2.3 billion. They own roughly 1.2% of the company. Do you think it's worth buying Chevron stock? Contact us.


Wall Street and Buffett can't find common ground


But fear not, Buffett is still a guy who doesn't agree with analysts on most estimates at all.

Analysts remain skeptical of Berkshire's second-largest holding, Bank of America (BAC). Analysts see only a lackluster 5% increase over the next 12 months. Even so, Bank of America still has a huge stake for Berkshire. Buffett owns more than a billion shares worth $41.5 billion. BofA represents nearly 14% of Berkshire Hathaway's U.S.-listed portfolio, second only to Apple's huge position.

Buffett and analysts are most divided on grocery chain Kroger (KR).

Buffett is filling its portfolio Kroger at an accelerated pace. In the second quarter, Berkshire increased its stake by more than 20%, or 10.7 million shares. Berkshire Hathaway now owns more than 8% of the company. Analysts, however, think Buffett is completely out of touch. They think Kroger at 45.44 per share is overvalued by more than 15%.

Warren Buffett's stock that analysts recognize

The U.S.-listed Berkshire Hathaway holding company is up 20% or more against analysts' 12-month price targets.

Source: Investors Business Daily


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