10 Cheap Value Stocks to Invest in According to Warren Buffett

1. Bank Of America Corporation (NYSE:BAC)

Forward Price to Earnings Ratio: 12.20

Berkshire Hathaway Stake Value: $31.65 Billion

Number of Hedge Fund Holders: 98

Bank Of America Corporation (NYSE:BAC) is a financial services giant that provides banking, financial products and services to individual customers and institutional investors. It is a highly regarded investment play in the financial service sector owing to its monster scale and brand reach through branches and corporate offices. The stock was up by about 37% in 2024 as investors reacted to strong corporate results that allowed it to return significant value to shareholders.

One aspect of Bank Of America Corporation (NYSE:BAC) that may be taken for granted is its steady profit growth. Its net profit margin has averaged 25% over the last ten years. The company’s profitability enables it to pay dividends on a consistent basis. Consequently, it is a cheap value stock to invest in, according to Warren Buffett, as it trades at a price-to-earnings ratio of 12.48 while rewarding investors with a 2.25% dividend yield.

While we acknowledge the potential of BAC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BAC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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