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The Top 3 Value Stocks to Buy in Berkshire Hathaway's Portfolio
Read MoreHide Full Article
(0:30) - Breaking Down The Berkshire Hathaway Portfolio
(4;00) - Should You Consider Investing Into Any of The Berkshire Hathway's Positions?
(21:15) - Episode Roundup: CVX, NUE, AXP
Podcast@Zacks.com
Welcome to Episode #453 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
One of the big topics of conversation on the podcast over the last ten years has been Berkshire Hathaway’s equity portfolio. Tracey has talked about what has been bought, and sold, each quarter.
But Warren Buffett, the world’s greatest value investor, retired as CEO in Dec 2025. Additionally, one of Buffett’s two lieutenants, Todd Combs, left Berkshire in Dec 2025 as well.
As a result, there’s been a lot of changes to the equity portfolio. It once had over 50 companies but it’s now down to just 27.
Are There Values in Berkshire Hathaway’s Portfolio?
But not all of those companies are “values” right now. Berkshire Hathaway started buying Apple in 2016 when it’s price-to-earnings (P/E) ratio was under 10. A P/E ratio under 10 usually indicates deep value.
But today, Apple’s P/E is at 35 which is considered a high P/E. A value investor would be hard pressed to buy Apple at these current valuations.
Value investors need to look beyond the technology companies in the portfolio. Think old school, including those companies with hard assets.
The Top 3 Value Stocks to Buy in the Berkshire Hathaway Portfolio
Chevron is a global integrated energy company which was founded in 1879. It’s been around a long time. Thanks to rising oil prices and record high crack spreads, earnings are expected to jump 127% this year.
Shares of Chevron are hitting new all-time highs, up 40% year-to-date. But it’s still cheap. Chevron trades with a forward P/E of just 12.6. A P/E under 15 usually indicates value.
Chevron is also shareholder friendly. It has increased its dividend 39 years in a row. That dividend currently yields an attractive 3.4%.
Berkshire Hathaway started buying Chevron shares in 2020, during the COVID pandemic. It has bought, and sold, several times over the last six years but it has maintained a large position in the company.
Should an energy company like Chevron be on your value stock short list?
Nucor Corp. is a leading North American producer of structural steel, steel bars, steel joists, steel deck and cold finished bars. It can trace its lineage back to 1905 but became Nucor in 1972.
In the second quarter of 2026, Nucor saw a second consecutive quarterly record for steel mill shipments. It cited supportive federal trade policies.
Earnings are expected to jump 132% in 2026. Steel is in demand again due to the AI Revolution infrastructure buildout.
Shares of Nucor are up 56.6% year-to-date but have cooled off 7% over the last month. It’s still cheap. Nucor trades with a forward P/E of just 14.5. A P/E ratio under 15 usually indicates value.
Nucor is shareholder friendly. It pays a dividend, currently yielding 0.9%, and also has a share repurchase program.
Berkshire Hathaway first bought shares of Nucor in the first quarter of 2025. It’s a small position in the equity portfolio, however.
Should a steel producer like Nucor be on your value stock short list?
American Express is a global payments and premium lifestyle brand company which was founded in 1850. Buffett has always liked the companies which built moats over many decades in business.
Shares of American Express are down 13.3% year-to-date after hitting new all-time highs at the end of 2025. This sell-off has created a buying opportunity for value investors.
The shares are down but earnings are expected to grow 14.9% in 2026 and 14.5% in 2027. American Express has a forward P/E of 18.2. While that’s not under 15 which would make it a classic value, it is cheap for the industry.
American Express is shareholder friendly. It has raised its dividend 5 consecutive years, including in March 2026 when it raised the quarterly dividend by 16%. It’s now yielding 1.2%.
Berkshire Hathaway first bought American Express in 1991 and accumulated shares until 1995. It’s now the second largest position in the equity portfolio, with only Apple ranking above it.
Should a global payments company like American Express be on your value stock short list?
What Else Should You Know About Finding the Best Stocks in Berkshire Hathaway’s Portfolio?
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The Top 3 Value Stocks to Buy in Berkshire Hathaway's Portfolio
Welcome to Episode #453 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
One of the big topics of conversation on the podcast over the last ten years has been Berkshire Hathaway’s equity portfolio. Tracey has talked about what has been bought, and sold, each quarter.
But Warren Buffett, the world’s greatest value investor, retired as CEO in Dec 2025. Additionally, one of Buffett’s two lieutenants, Todd Combs, left Berkshire in Dec 2025 as well.
As a result, there’s been a lot of changes to the equity portfolio. It once had over 50 companies but it’s now down to just 27.
Are There Values in Berkshire Hathaway’s Portfolio?
But not all of those companies are “values” right now. Berkshire Hathaway started buying Apple in 2016 when it’s price-to-earnings (P/E) ratio was under 10. A P/E ratio under 10 usually indicates deep value.
But today, Apple’s P/E is at 35 which is considered a high P/E. A value investor would be hard pressed to buy Apple at these current valuations.
Value investors need to look beyond the technology companies in the portfolio. Think old school, including those companies with hard assets.
The Top 3 Value Stocks to Buy in the Berkshire Hathaway Portfolio
1. Chevron Corp. (CVX - Free Report)
Chevron is a global integrated energy company which was founded in 1879. It’s been around a long time. Thanks to rising oil prices and record high crack spreads, earnings are expected to jump 127% this year.
Shares of Chevron are hitting new all-time highs, up 40% year-to-date. But it’s still cheap. Chevron trades with a forward P/E of just 12.6. A P/E under 15 usually indicates value.
Chevron is also shareholder friendly. It has increased its dividend 39 years in a row. That dividend currently yields an attractive 3.4%.
Berkshire Hathaway started buying Chevron shares in 2020, during the COVID pandemic. It has bought, and sold, several times over the last six years but it has maintained a large position in the company.
Should an energy company like Chevron be on your value stock short list?
2. Nucor Corp. (NUE - Free Report)
Nucor Corp. is a leading North American producer of structural steel, steel bars, steel joists, steel deck and cold finished bars. It can trace its lineage back to 1905 but became Nucor in 1972.
In the second quarter of 2026, Nucor saw a second consecutive quarterly record for steel mill shipments. It cited supportive federal trade policies.
Earnings are expected to jump 132% in 2026. Steel is in demand again due to the AI Revolution infrastructure buildout.
Shares of Nucor are up 56.6% year-to-date but have cooled off 7% over the last month. It’s still cheap. Nucor trades with a forward P/E of just 14.5. A P/E ratio under 15 usually indicates value.
Nucor is shareholder friendly. It pays a dividend, currently yielding 0.9%, and also has a share repurchase program.
Berkshire Hathaway first bought shares of Nucor in the first quarter of 2025. It’s a small position in the equity portfolio, however.
Should a steel producer like Nucor be on your value stock short list?
3. American Express Co. (AXP - Free Report)
American Express is a global payments and premium lifestyle brand company which was founded in 1850. Buffett has always liked the companies which built moats over many decades in business.
Shares of American Express are down 13.3% year-to-date after hitting new all-time highs at the end of 2025. This sell-off has created a buying opportunity for value investors.
The shares are down but earnings are expected to grow 14.9% in 2026 and 14.5% in 2027. American Express has a forward P/E of 18.2. While that’s not under 15 which would make it a classic value, it is cheap for the industry.
American Express is shareholder friendly. It has raised its dividend 5 consecutive years, including in March 2026 when it raised the quarterly dividend by 16%. It’s now yielding 1.2%.
Berkshire Hathaway first bought American Express in 1991 and accumulated shares until 1995. It’s now the second largest position in the equity portfolio, with only Apple ranking above it.
Should a global payments company like American Express be on your value stock short list?
What Else Should You Know About Finding the Best Stocks in Berkshire Hathaway’s Portfolio?
Tune into this week’s podcast to find out.