Berkshire Hathaway Stocks Trading Below Highs Offer Value Opportunities
Berkshire Hathaway, known for its value-focused investment strategy, continues to hold significant stakes in companies that are currently trading well below their all-time highs. The investment conglomerate, led by Greg Abel, favors businesses with strong economic moats and reliable cash flows. Three such stocks in Berkshire's portfolio, American Express, The New York Times Company, and DaVita, are highlighted as potential buys due to their current undervaluation.
American Express stands out as a top holding for Berkshire, with 151.6 million shares representing 13% of the company's portfolio. The stock is down 18% year-to-date and 21% off its all-time high. American Express focuses on affluent customers through its premium card programs, which offer substantial annual fees and exclusive perks. CEO Stephen Squeri noted strong growth in the platinum portfolio and attraction of younger customers, with second-quarter revenue up 10% to $19.6 billion.
The New York Times Company defies industry trends by thriving in the digital space. With 13.35 million subscribers, mostly digital, the company saw second-quarter revenue rise 11% to $762.5 million. Despite a decline in print advertising, digital ads surged 21%, boosting total ad revenue. The stock is down 8% year-to-date and 20% from its peak, making it an attractive value play.
DaVita, a healthcare company specializing in kidney disease and dialysis services, is Berkshire's lone healthcare holding. The stock has surged 58% year-to-date but remains 27% below its all-time high. Second-quarter revenue increased to $3.55 billion, with net income rising to $343.2 million. DaVita's focus on a critical healthcare need positions it as a resilient investment.