SPECIAL REPORT The Top 7 Stocks for 2024

A Buffett Shopping List: 7 ‘Oracle of Omaha’ Stocks to Consider.

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  • Procter & Gamble (PG): A safe bet with everyday brands, consistent profitability, and a high net margin.
  • Coca-Cola (KO): Aligns with Warren Buffett’s principle of investing in what you know, and offers stability in consumer behavior shifts.
  • Occidental Petroleum (OXY): A potential controversial pick in the energy sector, but its geopolitical relevance makes it a Buffett choice.
  • Read more about these top seven Warren Buffett stocks to buy and hold today!
Warren Buffett stocks - A Buffett Shopping List: 7 ‘Oracle of Omaha’ Stocks to Consider.

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With the market presenting some mixed signals, now may be the time to consider the best Warren Buffett stocks for the circumstances. Put another way, certain ideas from the holdings of the Oracle of Omaha’s Berkshire Hathaway (NYSE:BRK-B) conglomerate stand out.

To be sure, you don’t want to bank your entire life savings on the perceived guidance of any one expert. I’m sure even the Oracle will admit that some of his ideas just didn’t pan out. That said, what I appreciate about Warren Buffett stocks is their proven track record. Here’s someone who

didn’t just ride out bull markets (anyone can do that). He also navigated bearish cycles.

And that point deserves serious consideration. Sure, the benchmark S&P 500 index is up around 11% so far this year. However, since hitting a closing peak on July 31, the index slipped nearly 8%. Also, while the third-quarter GDP came in hot, questions exist about whether such a mercurial trend is sustainable.

Under these ambiguous circumstances, the below best Warren Buffett stocks should be on your watch list.

Warren Buffett Stocks: Procter & Gamble (PG)

Procter & Gamble Union Distribution Center. P&G is an American Multinational Consumer Goods Company
Source: Jonathan Weiss / Shutterstock.com

Probably the safest idea on this list of Warren Buffett stocks, Procter & Gamble (NYSE:PG) offers a boring platform to sleep on. As a consumer goods giant, P&G will almost surely not make you rich unless you’re taking heavily leveraged bets via the options market. However, because the products represent everyday brands that households use, it’s unlikely to crater.

And it’s a similar theme in the financials. P&G doesn’t offer anything remarkable. For example, it posts a three-year revenue growth rate of 6.9%, which is slightly better than average for the sector. Also, it’s not particularly cheap. Right now, shares trade at a forward earnings multiple of 23.5x, which stands significantly higher than average.

However, the positive is that the company is consistently profitable (as you’d imagine). And its net margin is on fire (in a good way), clocking in at 18.3% and beating out over 93% of its rivals.

Analysts agree that PG is one of the best Warren Buffett stocks, rating it a moderate buy with a $163.44 price target.

Coca-Cola (KO)

KO stock PEP stock: a can of Coca-cola and a can of Pepsi on either side of a glass of brown soda and sitting on top of a pile of ice
Source: monticello / Shutterstock

One of the pieces of wisdom that the Oracle bestowed upon retail investors is to invest in what you know. True to form, Coca-Cola (NYSE:KO) ranks among the best Warren Buffett stocks to buy. Curiously, the legendary investor has a sweet tooth, making others marvel at his longevity. Therefore, it’s no surprise that KO is one of the top holdings of Berkshire, representing 6.7% of the portfolio.

Fundamentally, the benefit to owning shares in your portfolio centers on the trade-down effect. I’ve been saying this for a while but I genuinely believe that consumer behaviors will pivot down. For example, the vaunted revenge travel sentiment may be fading. Basically, this framework implies that economic pressures are taking its toll on everyday folks.

Translation? Fewer trips to pricey coffeeshops and more acquisition of caffeinated beverages at the grocery store. That should benefit high-visibility brands like Coca-Cola.

Analysts agree, pegging KO a moderate buy with a $63.67 price target.

Warren Buffett Stocks: Occidental Petroleum (OXY)

A magnifying glass zooms in on the Occidental Petroleum website.
Source: Pavel Kapysh / Shutterstock.com

Another top idea among Warren Buffett stocks to buy, Occidental Petroleum (NYSE:OXY) might be controversial because of its core business. As a hydrocarbon exploration (upstream) specialist, Occidental operates projects in the U.S. and the Middle East. Also, it features a petrochemical manufacturing unit. Subsequently, some investors may question the viability of Occidental given the push for renewable energy.

Increasingly, I’m beginning to be cautious about the go-green directive. For instance, electric vehicles are piling up at dealerships, indicating broader integration challenges. Also, with natural population growth – immigration combined with natural births – we’ll need all the energy we can get. Even if we are capable of transitioning exclusively to renewables, I don’t think it’s smart from a diversification perspective.

To be sure, OXY has its challenges, particularly the revenue decline since Q2 2022. However, geopolitical forces may also pivot this trajectory northward. It’s risky, yes, but the Oracle likes it.

Analysts view OXY as a moderate buy, anticipating shares hitting $70.71.

Kroger (KR)

Kroger (KR) Supermarket. The Kroger Co. is One of the World's Largest Grocery Retailers.
Source: Eric Glenn / Shutterstock.com

If any idea among the best Warren Buffett stocks represents a no-brainer, Kroger (NYSE:KR) might be it. Now, I’m leery of Murphy’s law rearing its ugly head. Maybe after this write-up, KR suffers a 50% haircut. Anything and everything is possible in the market so I’m not discounting such a severe tail risk materializing. However, I believe it’s highly unlikely.

Fundamentally, I’m going to bring up the trade-down effect again. With consumers facing a severe reality check, they’ll have to cut back on their extravagant spending and trade down. For example, I recently sat down with CGTN America anchor Frances Kuo regarding the state of pet economics. In the broadcast, I cited data indicating that pet-loving Americans have begun to sacrifice veterinary care.

Moving forward, more people will likely ditch eating out for cooking. To sweeten the pot, KR stock trades at an ultra-low forward earnings multiple of 10.16x.

Analysts agree with the Oracle, rating KR a moderate buy with a $52.75 price target.

Warren Buffett Stocks: American Express (AXP)

the American Express logo etched into wood
Source: First Class Photography / Shutterstock.com

Talk about a hard segue, American Express (NYSE:AXP) represents a “yes-brainer” if that makes sense. Essentially, I’m conveying that the financial services firm carries significant risks. While it does offer substantial upside per analyst projections, investors will need to think carefully. It’s a minefield, symbolizing a wager that Amex’s higher-income clients can overcome broader economic worries.

On paper, the aforementioned narrative makes sense. Amex doesn’t just let anyone use its cards, particularly its higher-profile metallic cards. However, the company recently increased provisions for delinquent customers, sending shares down. If you have high conviction, the red ink may represent a discounted opportunity.

At the same time, this move sends a wrong message for many investors. It indicates a level of mild desperation or at least acquiescence to shoddy behaviors. Therefore, it seems on the outside that management anticipates rough times ahead, even for higher-income cardholders.

While it’s not the most encouraging backdrop, analysts peg AXP a moderate buy. Also, the price target stands at $176, implying over 20% growth.

Snowflake (SNOW)

The Snowflake logo on a company office in Silicon Valley, California. (SNOW IPO)
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Moving decisively into the more “potshot” component of the best Warren Buffett stocks, Snowflake (NYSE:SNOW) represents a departure from some of the boring but reliable holdings of Berkshire. Founded in 2012, Snowflake offers cloud-based data storage and analytics services or “Data as a Service.” Per its public profile, the company allows corporate users to store and analyze data using cloud-based hardware and software.

Of course, the main concern centers on the choppy nature of tech right now. To be fair, SNOW is in positive territory for the year but barely, gaining 6.5% since the January opener. However, in the trailing half-year period, SNOW sits just under parity, reflecting sector-wide ambiguities. Still, an argument can be made that shares trade substantially below their intrinsic value.

That’s also the assessment that investment data aggregator Gurufocus runs with regarding its proprietary calculations for intrinsic value. However, retail investors should be aware that against traditional valuation metrics, SNOW runs well hotter than average. Still, the Oracle probably likes Snowflake because of its robust balance sheet.

Analysts agree, rating SNOW a strong buy with $192.60 target, implying almost 34% upside.

General Motors (GM)

Image of General Motors (GM) logo on corporate building with clear sky in the background.
Source: Katherine Welles / Shutterstock.com

While General Motors (NYSE:GM) might rank among the best Warren Buffett stocks to buy, it also requires high conviction. As you’ve likely heard, the United Auto Workers (UAW) strike imposed a significant impact on the domestic auto industry. Basically, the labor dispute represented a headache that management didn’t need. Notably, GM is down over 17% since the January opener.

Nevertheless, the automaker may turn a corner soon. First, the company reached a tentative agreement with the UAW. Second, it posted contextually impressive Q3 earnings results given the headwinds from the strike. Combined with other compelling fundamental factors, I believe General Motors is possibly the most credible EV manufacturer.

Unlike pure-play EV rivals, GM always has the ability to shift production back to its combustion-powered offerings if the market demands it. Further, because GM is a trusted brand (overall, I know it has some past controversies), it’s easier for the automaker to convert customers to electric-powered mobility.

Analysts seem interested, pegging GM a moderate buy with a $44.82 target, projecting 60% growth.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.


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