Buffett's Picks: Affordable Stocks for Budget Investors

A recent report highlights affordable stock options from Warren Buffett's portfolio for investors with limited cash. With key players like Amazon and Lennar showing potential for growth, understanding their valuations and market positions could guide smart investments.

Date: 22-09-2024

AI Rating: 7

The report discusses several stocks from Warren Buffett's Berkshire Hathaway portfolio.

Amazon (NASDAQ: AMZN)

Amazon has shown substantial growth, especially in its cloud services through Amazon Web Services (AWS), which contributed roughly 16.5% of total net sales and nearly 70% of operating income in Q2 2024. The positive sentiment surrounding its growth prospects in the e-commerce and cloud sectors influences the stock's valuation positively.

Lennar (NYSE: LEN)

With a price-to-earnings ratio of 12.8, Lennar is undervalued compared to the SPDR S&P Homebuilders ETF's multiple of 18.2. The U.S. housing shortage, needing an additional 4.5 million homes, offers substantial growth potential for Lennar, making it an attractive investment.

Occidental Petroleum (NYSE: OXY)

Buffett's affirmation of Occidental as a long-term hold reflects confidence in its management and capabilities, notably in carbon-capture initiatives. This widespread requirement for oil further supports valuation stability.

Stocks: AMZN LEN OXY