Warren Buffett has been a favorite celebrity among stock investors for decades. The longtime value investor has been uncanny with his ability to make smart investment picks, and that’s been a big part of what’s made the Omaha native one of the richest people in the world.
Even Buffett hasn’t been immune from the coronavirus market downturn, as many of his holdings have lost a great deal of value. Yet as any good value investor knows, looking for great companies when their share prices have gotten beaten down can lead to finding some of your most successful stock picks ever. Here, we’ll look at the many Buffett stocks that find themselves at bargain prices now — and then pick a favorite from the cream of the crop.
Image source: The Motley Fool.
Big losses for Buffett’s favorites
You don’t have to look too far down the list of Buffett stocks to see the opportunities to pick up shares on the cheap. Just take a look at how these top 10 holdings of Buffett-run Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) have done over the past two months:
Tech giant Apple (NASDAQ: AAPL) makes up 30% of the publicly traded stocks in the Berkshire portfolio, and it’s down 22% since the beginning of February. Coca-Cola (NYSE: KO) is another longtime position for Buffett. It’s down 28% over the same time span. Buffett’s been a big buyer of banks and other financial institutions recently, and many of those stocks appear in the Buffett top 10. Bank of America (NYSE: BAC), S. Bancorp (NYSE: USB), and American Express (NYSE: AXP) have all fallen about 40%, while JPMorgan Chase (NYSE: JPM) has held up better with a 36% decline. Wells Fargo (NYSE: WFC) is off 43%, while bond rating agency Moody’s (NYSE: MCO) weighs in