In this article, we discuss the 3 stocks that Warren Buffett was right about. If you want to read about some more stocks that Warren Buffett was right about, go directly to Warren Buffett Was Right About These 5 Stocks.
3. Paramount Global (NASDAQ:PARA)
Number of Hedge Fund Holders: 40
Percentage Increase in Share Price (YTD): 0.67%
Paramount Global (NASDAQ:PARA) is a media and entertainment firm. Latest 13F data shows that Berkshire opened a new position in the stock in the first quarter of 2022, comprising over 68 million shares worth $2.6 billion, representing 0.71% of the portfolio. On May 3, the firm posted earnings for the first quarter of 2022, reporting earnings per share of $0.60, beating market estimates by $0.08. The revenue over the period was $7.33 billion, down close to 1% compared to the revenue over the same period last year.
On May 23, Citi analyst Jason Bazinet maintained a Buy rating on Paramount Global (NASDAQ:PARA) stock and lowered the price target to $44 from $47, noting that the stock was valued on a “sum of the parts” basis.
At the end of the first quarter of 2022, 40 hedge funds in the database of Insider Monkey held stakes worth $3.4 billion in Paramount Global (NASDAQ:PARA), compared to 64 in the previous quarter worth $1 billion.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Ariel Investments is a leading shareholder in Paramount Global (NASDAQ:PARA), with 5.6 million shares worth more than $213 million.
2. HP Inc. (NYSE:HPQ)
Number of Hedge Fund Holders: 35
Percentage Increase in Share Price (YTD): 6.37%
HP Inc. (NYSE:HPQ) is a personal computing firm. At the end of the first quarter of 2022, Berkshire Hathaway owned over 104 million shares of the firm worth $3.7 billion, representing 1.04% of the portfolio. This is a new position of the fund since Berkshire has not previously held the stock. The firm posted earnings for the second quarter on May 31, reporting earnings per share of $1.08, beating market estimates by $0.03. The revenue for the period was $16.5 billion, up close to 4% compared to the revenue over the same period last year.
On May 25, JPMorgan analyst Samik Chatterjee maintained a Neutral rating on HP Inc. (NYSE:HPQ) stock and lowered the price target to $39 from $41, noting that the valuations in the IT sector were yet to bottom in a challenging environment.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm AQR Capital Management is a leading shareholder in HP Inc. (NYSE:HPQ), with 3 million shares worth more than $114 million.
At the end of the first quarter of 2022, 35 hedge funds in the database of Insider Monkey held stakes worth $4.1 billion in HP Inc. (NYSE:HPQ), compared to 39 the preceding quarter worth $963 million.
1. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 67
Percentage Increase in Share Price (YTD): 126.24%
Occidental Petroleum Corporation (NYSE:OXY) is an integrated oil and gas firm. Buffett opened a new position in the stock in early 2022 comprising over 136 million shares worth $7.7 billion, representing 2.12% of the portfolio. Vicki Hollub, the CEO of the firm, recently said during the earnings call that oil firms looking to increase production were struggling to balance increases without undercutting shareholder returns. He added that increasing production now would lead to “value destruction” for the sector.
On May 31, Mizuho analyst Vincent Lovaglio maintained a Buy rating on Occidental Petroleum Corporation (NYSE:OXY) stock and raised the price target to $89 from $85, noting that higher energy prices were benefiting exploration and production firms.
At the end of the first quarter of 2022, 67 hedge funds in the database of Insider Monkey held stakes worth $12.6 billion in Occidental Petroleum Corporation (NYSE:OXY), compared to 58 the preceding quarter worth $3.8 billion. Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Occidental Petroleum Corporation (NYSE:OXY), with 26 million shares worth more than $1.5 billion.
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