Warren Buffett's Q2 2024 Stock Picks: Key Insights for Investors

A recent report highlights Warren Buffett's strategic stock purchases for Q2 2024, showcasing potential value investment opportunities. Companies like Occidental Petroleum and Ulta Beauty stand out as key trades made by Buffett, which may influence investor sentiment and stock prices.

Date: 18-09-2024

AI Rating: 7

The report details Warren Buffett's stock purchases during the second quarter of 2024, which are significant for investors to consider. Buffett initiated new positions in two stocks: Heico (NYSE: HEI) and Ulta Beauty (NASDAQ: ULTA). Heico's high forward price-to-earnings (P/E) ratio of 61.3 makes it less appealing to value investors. In contrast, Ulta's forward earnings multiple of 16.3 presents a better opportunity, particularly when compared to the S&P 500's 21.5 times forward earnings.

Another major purchase was Buffett's additional 7.26 million shares of Occidental Petroleum (NYSE: OXY), which now ranks among Berkshire Hathaway's top holdings. With a trading multiple of 11 times forward earnings, it shows strong value potential, especially with the regulatory approval for Berkshire to acquire a larger stake. The investment in direct air capture technology further enhances Occidental's attractiveness for long-term growth.

Buffett also increased his position in Chubb (NYSE: CB) by 1.11 million shares, making it his ninth-largest holding. Chubb's forward earnings multiple of 11.9 contributes positively to its investment profile.

Among Buffett’s purchases, Sirius XM Holdings (NASDAQ: SIRI) had significant traction with a substantial increase in Berkshire's stake by over 262%. However, with the merger completed with Liberty SiriusXM Group, opportunities may have diminished. The Class A and Class C shares no longer being available means investors will need to reassess.

To summarize, value investors should keep an eye on the following key stocks from Buffett's Q2 purchases: Occidental Petroleum, Ulta Beauty, and Chubb. With their financial metrics and Buffett's backing, these stocks could affect market values positively.

Stocks: HEI ULTA OXY CB SIRI