Buffett Is Hyping These Stocks. Are They Right For You?

Chairman and CEO of Berkshire Hathaway Warren Buffett is sometimes known as the Oracle of Omaha due to his reputation as one of the greatest investors of all time. His preference is for solid companies with an excellent track record that offer some sort of unique competitive advantage, but are currently undervalued. This means that when a stock dips below Buffett’s original purchase price, it’s worth taking notice. Here are two to consider.

Heinz (NASDAQ: KHC)

Buffett purchased the venerable Heinz company in 2013, later guiding it to a merger with Kraft Foods. At the time, shares traded for about $75 each, but today they’re down to just $32. This is largely due to a shift in consumer sentiment away from big national brands and into smaller local food companies. Still, the Kraft Heinz brand portfolio is too large to ignore, encompassing such longtime favorites as Oscar Mayer, Cool Whip, Jell-O, and more. Its growth trajectory may be relatively slow, at about 4% per year, but it’s relatively stable. Those looking for a safe, long-term investment would do well to consider Heinz.

Snowflake (NYSE: SNOW)

Tech stocks are still new for Buffett, who traditionally stayed away from them. But his most trusted lieutenants have guided Berkshire Hathaway to some tech picks in recent years, including a massive stake in Apple. Snowflake is a cloud computing company that showed real promise at the time of purchase in 2020, with shares trading at about $240 each. Snowflake stocks have cratered since then, and are currently trading at just $130.

Still, the company remains free cash flow positive, it’s adding customers, and those customers are showing a willingness to pay a premium for Snowflake’s services. With all of this in mind, it’s easy to understand why Buffett still believes in this stock. Now may be a good time to buy in at a discount.

Neither Lisa Fritscher nor Stocks.News have positions in this company.