5 Cheapest Stocks in Warren Buffett’s Portfolio for 2024

In this piece, we will take a look at the 5 cheapest stocks in Warren Buffett’s portfolio for 2024. If you want to see more stocks in this selection, you can look at the 12 Cheapest Stocks in Warren Buffett’s Portfolio for 2024.

5. Ally Financial Inc. (NYSE:ALLY)

Berkshire Hathaway’s Latest Investment: $773.72 Million
Number of Hedge Fund Holders: 43
P/E Ratio: 9.52

Ally Financial Inc. (NYSE:ALLY) is one of the cheapest stocks in Warren Buffett’s portfolio for 2024 in the financial services sector. Ally Financial Inc. (NYSE:ALLY) provides various digital products and services to people seeking insurance, mortgages, car loans, and other products.

Ally Financial Inc. (NYSE:ALLY) is one of the best-performing stocks in Buffett’s portfolio, going by the 45% year-to-date gain, better than the 21% gain for the S&P 500. In addition, Ally Financial Inc. (NYSE:ALLY) offers a 3.42% yield. Berkshire held stakes worth $773.72 million as of the end of Q3 2023.

As of the conclusion of Q3 2023, 43 hedge funds listed in Insider Monkey’s database disclosed holding stakes in Ally Financial Inc. (NYSE:ALLY), a slight decrease from the 46 funds reported in the preceding quarter. The aggregated worth of these stakes exceeded $1.64 billion. Notably, Warren Buffett’s Berkshire Hathaway emerged as the leading stakeholder during Q3, possessing 29 million shares in the company.

Here is what Silver Beech Capital said about Ally Financial Inc. (NYSE:ALLY) in its Q1 2023 investor letter: 

“Ally Financial Inc. (NYSE:ALLY) is the largest all-digital bank in the United States, the 22nd largest bank by total assets ($192 billion), the nation’s leading prime auto lender (with 6.5 million consumer customers), and leading auto floorplan lender (with over 23,000 dealer relationships). Most of Ally’s assets are auto loans and finance receivables, but Ally also offers consumer protection insurance through its dealer channels and operates small corporate and mortgage lending businesses. Notably, Ally also offers some of the industry’s most competitive deposit products: Ally was awarded “Best Checking Account”, “Best Saving Account”, and overall “Best Online Bank” by third party reviews and was the first large bank to eliminate overdraft fees. We believe Ally’s intrinsic value is more than 40% greater than its March 31 share price…”(Click here to read the full text).

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