In this article, we discuss 5 value stocks in Warren Buffett’s latest portfolio. If you want to read our detailed analysis of these stocks, go directly to 10 Value Stocks in Warren Buffett’s Latest Portfolio.
5. The Bank of New York Mellon Corporation (NYSE:BK)
Number of Hedge Fund Holders: 49
PE Ratio: 11.95
The Bank of New York Mellon Corporation (NYSE:BK) provides financial products and services. Hedge funds have been loading up on the stock. At the end of the fourth quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $5.1 billion in The Bank of New York Mellon Corporation (NYSE:BK), compared to 46 in the previous quarter worth $4.6 billion.
Latest filings show that Berkshire Hathaway owned over 72 million shares of The Bank of New York Mellon Corporation (NYSE:BK) at the end of December 2021 worth $4.2 billion, representing 1.26% of the portfolio. The fund registered no new activity around the company during the quarter.
In its Q3 2020 investor letter, First Eagle Investment Management, an asset management firm, highlighted a few stocks and The Bank of New York Mellon Corporation (NYSE:BK) was one of them. Here is what the fund said:
“The world’s largest custody bank, Bank of New York Mellon has been challenged by the persistently low-rate environment. While custody tends to be a wide-moat business, revenue generation is highly sensitive to net interest margins. Low rates have also hurt Bank of New York’s other primary line of business—investment management—as it has been forced to waive fees on its money market funds to preserve their net asset value.”
4. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 94
PE Ratio: 11.49
Wells Fargo & Company (NYSE:WFC) is a diversified financial services firm. Securities filings reveal that Berkshire Hathaway owned over 675,054 shares of the company at the end of December 2021 worth $32 million, representing a small portion of the portfolio.
Wells Fargo & Company (NYSE:WFC) is one of the favorite finance stocks on Wall Street. At the end of the fourth quarter of 2021, 94 hedge funds in the database of Insider Monkey held stakes worth $6.11 billion in Wells Fargo & Company (NYSE:WFC), compared to 88 the preceding quarter worth $6.18 billion.
In its Q4 2020 investor letter, Davis Funds, an asset management firm, highlighted a few stocks and Wells Fargo & Company (NYSE:WFC) was one of them. Here is what the fund said:
“Detractors to performance relative to the index include financial services holdings such as Wells Fargo. While banks in general have suffered due to the recession and experienced credit losses, Wells Fargo also suffered from operational missteps. It is our expectation, however, that our bank holdings in general will benefit from stronger economic growth as the pandemic recedes; and we believe Wells Fargo in particular, will, over time, lower their costs and successfully grow their businesses.”
3. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 84
PE Ratio: 11.28
Bank of America Corporation (NYSE:BAC) provides banking and financial products. Securities filings reveal that Berkshire Hathaway owned more than 1 billion shares in Bank of America Corporation (NYSE:BAC) at the end of December 2021 worth $44.9 billion, representing 13.57% of the portfolio.
Hedge funds have been piling into Bank of America Corporation (NYSE:BAC) stock as interest rates rise. At the end of the fourth quarter of 2021, 84 hedge funds in the database of Insider Monkey held stakes worth $47 billion in Bank of America Corporation (NYSE:BAC), compared to 72 in the previous quarter worth $46 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Bank of America Corporation (NYSE:BAC) was one of them. Here is what the fund said:
“Higher long-term interest rates supported financials such as Bank of America, which has shown both defensive and offensive characteristics in the past year. We believe it continues to be the least risky large bank from a credit standpoint, with conservative underwriting and controlled risk taking, a leading consumer deposit franchise, scale and technology. It is also a leader in its commitments to sustainability, or as it terms it, responsible growth. Disclosure and reporting at all levels form a large part of this commitment, including gender diversity and equality, environmental commitments and support of communities in which it operates. In the first quarter Bank of America announced it is setting a goal of net-zero greenhouse gas (GHG) emissions in its supply chain and operations, and notably also in its financing activities, before 2050.”
2. U.S. Bancorp (NYSE:USB)
Number of Hedge Fund Holders: 46
PE Ratio: 10.31
U.S. Bancorp (NYSE:USB) is a financial services holding firm. The hedge fund sentiment around the stock is overwhelmingly positive. At the end of the fourth quarter of 2021, 46 hedge funds in the database of Insider Monkey held stakes worth $7.9 billion in U.S. Bancorp (NYSE:USB), up from 42 the preceding quarter worth $8.3 billion.
According to the latest data, Berkshire Hathaway owned more than 126 million shares of U.S. Bancorp (NYSE:USB) at the end of December 2021 worth $7.1 billion, representing 2.14% of the portfolio. The fund registered no new activity around the stock during the fourth quarter.
In its Q4 2020 investor letter, Mairs & Power, an asset management firm, highlighted a few stocks and U.S. Bancorp (NYSE:USB) was one of them. Here is what the fund said:
“On the negative side, one of the Fund’s biggest detractor in 2020 was U.S. Bancorp (USB). Like all banks, U.S. Bank was hurt by the difficult interest rate environment and credit cycle concerns. We believe banks are strong enough to survive the current sector doldrums, and they remain some of the market’s most attractive opportunities.”
1. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 63
PE Ratio: 10.00
Verizon Communications Inc. (NYSE:VZ) provides technology and communications services. At the end of December 2021, Berkshire Hathaway owned over 158 million shares in Verizon Communications Inc. (NYSE:VZ) worth $8.2 billion, representing 2.49% of the portfolio.
Elite hedge funds hold large stakes in Verizon Communications Inc. (NYSE:VZ). At the end of the fourth quarter of 2021, 63 hedge funds in the database of Insider Monkey held stakes worth $10.8 billion in Verizon Communications Inc. (NYSE:VZ), compared to 57 in the previous quarter worth $10.3 billion.
In its Q1 2021 investor letter, Miller/Howard Investments, an asset management firm, highlighted a few stocks and Verizon Communications Inc. (NYSE:VZ) was one of them. Here is what the fund said:
“We sold Verizon (VZ) based on concerns over how much they might spend in ongoing spectrum auctions. Management may legitimately view spending billions of dollars to expand their spectrum holdings as necessary, but we believe the payoff will be slow and will make it challenging to grow the dividend at a good pace.”
You can also take a peek at 13 Best Hemp Stocks to Buy Now and Billionaire Dan Loeb’s Top 10 Stock Picks.
