5 No-Brainer Warren Buffett Stocks to Buy Right Now

Core Insights - Warren Buffett's investment strategy and Berkshire Hathaway's stock holdings are of significant interest to investors, with a focus on companies that may present potential investment opportunities [1] Group 1: Ally Financial - Ally Financial is the largest indirect car loan company in the U.S., with a market value of $9.7 billion and approximately 11 million customers [4][5] - The company offers a dividend yield of 3.7% and has a price-to-sales ratio of 1.1, below its five-year average of 1.3 [5] - Ally reported a record 3.8 million consumer auto loan applications and a 9% year-over-year increase in insurance written premiums [5] Group 2: Kroger - Kroger is a major grocery retailer with over 400,000 employees and more than 2,000 locations, serving over 63 million households annually [6][7] - The company has a dividend yield of 1.8% and has averaged annual gains of 13.6% over the past 15 years [8] - Kroger's net profit margin is low, recently below 2%, but compensates with high sales volume; its forward P/E ratio is 15, above the five-year average of 12 [8][9] Group 3: Bank of America - Bank of America is a significant holding for Berkshire, comprising about 11% of its portfolio, with a recent dividend yield of 2.8% [10] - The bank operates in various sectors, including consumer banking and global markets, and has reported 12 consecutive quarters of revenue growth [11] - Its stock has a forward P/E of 10.2, below the five-year average of 11.4, indicating appealing valuation [11] Group 4: Sirius XM Holdings - Sirius XM Holdings is a leading audio entertainment provider with around 160 million monthly listeners [12] - The company is undergoing a turnaround, reflected in its lower stock price, with a forward P/E of 6.6, significantly below its five-year average of 14.6 [12] - It offers a dividend yield of 5.3% and is a substantial holding for Berkshire, which owns over a third of the company [13] Group 5: Chevron - Chevron has a market value of nearly $240 billion and offers a dividend yield of 5%, having increased its payout for 38 consecutive years [14] - The company is financially strong with a robust balance sheet, although low oil prices have recently pressured profits [15] - Its forward P/E is 14.6, slightly above the five-year average of 13.6, suggesting it may be overvalued or fairly valued [15]