By: Dividend Sensei
Warren Buffett’s company bought $47 billion worth of stocks in 2022, backing up the truck during the 11th worst six-month period in US market history.
Berkshire bought $777 million worth of this fast-growing anti-bubble financial that’s nearly 40% historically undervalued.
This company is expected to experience a modest fundamental decline in the coming recession, but at 5.5X earnings it’s a Buffett-style “fat pitch” that could nearly triple in five years.
This other blue-chip is a world leader in petrochemicals that’s trading at a 27% discount, 5.8X cash-adjusted earnings. It could nearly double in the next 2.5 years and triple in the next five.
Both recent Buffett buys represent two examples of what Joel Greenblatt called “buying above average quality at below-average prices”.
For anyone comfortable with their risk profiles and who wants to ride with the Oracle of Omaha and go bargain hunting, these are two reasonable and prudent deep-value dividend stocks to consider.