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Follow Warren Buffett With These Stocks and ETFs

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Billionaire investor Warren Buffett — the Oracle of Omaha — is known for his value investing style. Many want to mirror the legend’s investing strategy and emerge a winner, having navigated the turbulent financial and economic waters.

Want to Follow Buffett’s Q2 Buys?

Buffett took new positions in only two stocks in the second quarter of 2024. He purchased 1.04 million shares of aerospace and electronics company Heico (HEI - Free Report) for Berkshire Hathaway's (BRK.A - Free Report) (BRK.B) portfolio. He also bought over 690,000 shares of cosmetics retailer Ulta Beauty (ULTA - Free Report) , per Motley Fool, as quoted on Yahoo Finance.

Both Heico and Ulta Beauty shares are not undervalued. Ulta trades at a Price/Earnings (P/E) trailing 12 month (TTM) of 15.93X versus the industry average of 10.30X. Heico trades at a P/E (TTM) of 74.59X versus the industry average of 33.23X.

ETF Picks for Heico Stock Heavy Funds

Investors who prefer less company-specific concentration risks and are unsure about investing in those stocks due to overvaluation concerns, may try investing in Heico-heavy exchange-traded funds (ETF) like TCW Compounders ETF GRW and SPDR S&P Aerospace & Defense ETF (XAR). Ulta has 4.66% weight in Neuberger Berman Next Generation Connected Consumer ETF (NBCC - Free Report) .

Other Warren Buffet Stock Buys

Arguably the most expected trade for Buffett during the second quarter was his acquisition of 7.26 million additional shares of oil stock Occidental Petroleum (OXY - Free Report) . The oil stock ranks as Berkshire's sixth-largest holding. Another purchase for Buffett in Q2 was insurance company Chubb (CB - Free Report) . He increased Berkshire's position in Chubb by 4.3% in the quarter. Chubb is Berkshire's ninth-largest holding.

He also bought 2.43 million shares of Liberty SiriusXM Group Class A (LSXMA) and 4.52 million shares of Liberty SiriusXM Group Class C (LSXMK). Both stocks reflected Liberty Media's interest in satellite radio and podcast company Sirius XM Holdings (SIRI - Free Report) . Buffett purchased 96.2 million shares of Sirius XM itself. The move raised Berkshire's stake in that company by more than 262%.

The aforementioned stocks are typical Buffett stocks that boast undervaluation. Chubb trades at a P/E (TTM) of 12.10X versus the industry average of 15.58X. Occidental Petroleum trades at a P/E (TTM) of 14.46X versus the industry average of 13.73X. Sirius trades at a P/E (TTM) of 7.05X versus the industry average of 11.48X.

ETF Picks for Occidental Stock Heavy Funds

Investors may try playing in Occidental-heavy Texas Capital Texas Oil Index ETF (OILT - Free Report) (weight 7.59%) and First Trust Nasdaq Oil & Gas ETF (FTXN - Free Report) (weight 5.72%). There is Siri-heavy ETFs like Procure Space ETF (UFO - Free Report) . Chubb has 12.95% weight in iShares U.S. Insurance ETF (IAK - Free Report) and 7.93% weight in Invesco KBW Property & Casualty Insurance ETF (KBWP - Free Report) .

 


 

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