The 3 Best Warren Buffett Stocks to Buy in April 2024


  • Scouring the Berkshire Hathaway (BRK-A)(BRK-B) annual letter helps reveal the best Warren Buffett stocks to buy in April.
  • Occidental Petroleum (OXY): The oil stock is flourishing under the steady hand of its CEO and Buffett has no intention of interfering.
  • American Express (AXP): The credit card company is a stock you can easily buy and forget about while it generates generous returns.
  • Japanese Banks: U.S. bankers could learn a thing or two from emulating management at Itochu (ITOCF)(ITOCY), Marubeni (MARUF),  Mitsubishi (MSBHF), Mitsui (MITSF), and Sumitomo (SSUMF)(SSUMY).
best Warren Buffett stocks to buy - The 3 Best Warren Buffett Stocks to Buy in April 2024

Source: Kent Sievers /

When Warren Buffett buys a stock he tends to move decisively. It doesn’t mean all of the companies will be massive purchases like Apple (NASDAQ:AAPL) turned into, hogging up 45% of Berkshire Hathaway‘s (NYSE:BRK-A)(NYSE:BRK-B) portfolio. Instead, he will take meaningful positions, whether it’s dollars spent or as a sizeable percentage of the company’s.

Buffett doesn’t hesitate to spend billions of dollars on a company he favors, though. While you likely can’t do that in your own portfolio, following his lead on his purchases still makes sense.

In the six decades Buffett has helmed Berkshire Hathaway, he has generated returns of 4.38 million percent for investors compared to 32,000% for the S&P 500. Those are investments worth emulating! So if you want to ride his coattails, these are the three best Warren Buffett stocks to buy in April

Occidental Petroleum (OXY)

Occidental Petroleum (OXY) Company logo seen displayed on smart phone
Source: IgorGolovniov /

Buffett only bought three stocks in the fourth quarter. One of them was oil company Occidental Petroleum (NYSE:OXY). In his annual letter to shareholders, the Oracle of Omaha extolled the praises of CEO Vicki Hollub. He wrote that under her capable leadership, “Occidental is doing the right things for both its country and its owners.”

Now investors actually have a choice of oil companies to buy as one of the other three stocks he bought was Chevron (NYSE:CVX). I own the integrated oil and gas giant in my own portfolio but I find Occidental a compelling purchase at these prices. The Permian basin specialist trades at a discount to its larger peer on both a price-to-earnings and price-to-free cash (FCF) basis. That means investors are getting a bargain on the profits Occidental makes as well as on the excess cash it generates.

It’s also notable that at the end of 2023, Berkshire Hathaway owned 27.8% of the oil stock. It has SEC permission to buy as much as half of Occidental. And while increasing his stake is possible, Buffett was clear he had no intention of buying the whole thing.

“Though we very much like our ownership, as well as the option [to materially increase its stake], Berkshire has no interest in purchasing or managing Occidental,” he wrote.

American Express (AXP)

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

Although American Express (NYSE:AXP) wasn’t one of the stocks Buffett bought last quarter, the credit card giant still holds a considerable portion of his heart. Enough to call out the stock in the shareholder letter. 

He pointed out that as good as the company is, in the past it has gone off the rails. It tried to enter verticals not related to its wheelhouse and failed spectacularly. It was also mismanaged. Buffett underscored, though, that is “definitely” not the case now.

Yet owning a stock even if you don’t buy more shares is a declaration of support for the business. And the company rewarded him (and other investors) for his devotion by increasing its earnings and dividends. AmEx is likely to increase its payout this year by 16%.

For the past decade, the credit card leader has raised the dividend by a compounded annual growth rate (CAGR) of over 11%. Equally important, FCF has grown at an 8.5% CAGR. With an FCF payout ratio of just 10%, there is plenty of room for additional dividends and growth along the lines of what Buffett is expecting for the coming year.

Japanese Banks

an aerial view of Tokyo, Japan
Source: Shutterstock

Here you’re getting a five-for-one deal. Buffett owns five Japanese banking giants, each of which was worthy of being mentioned in the annual letter. They are are Itochu (OTCMKTS:ITOCF) (OTCMKTS:ITOCY), Marubeni (OTCMKTS:MARUF),  Mitsubishi (OTCMKTS:MSBHF), Mitsui (OTCMKTS:MITSF), and Sumitomo (OTCMKTS:SSUMF) (OTCMKTS:SSUMY).

These are also investments Buffett is all too willing to be a passive, long-term owner of. While he increased his stake in them last year after visiting with the management of each, Buffett said he promised them he would not increase his ownership interest beyond 9.9% of outstanding shares. Berkshire Hathaway now controls about 9% of the shares of each, so don’t expect to see him buying much more.

That doesn’t mean you shouldn’t buy them. Buffett highlighted how management not only was not as aggressive as their United States counterparts in lining their own pockets but they were all far more shareholder-friendly than U.S. bank managers.

Only about 5% of the banks’ earnings are allocated to dividends. They prefer to allocate more towards building their businesses and repurchasing shares. That’s value creation Buffett admires and you should, too.

On the date of publication, Rich Duprey held a LONG position in CVX stock. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.

Article printed from InvestorPlace Media,

©2024 InvestorPlace Media, LLC