Warren Buffett is one of the best ever when it comes to identifying undervalued stocks.Warren Buffett and his company, Berkshire Hathaway, have one of the best, if not the best, track records in the stock market over the past six decades. Between 1965 and 2024, Berkshire's stock generated a compound annual gain just shy of 20% and an overall gain of 5,502,284%. That compares favorably to the broader benchmark S&P 500 index, which has generated compound annual gains of 10.4% and a total return of 39,054% in ...

Market Overview - The stock market is experiencing volatility, with the S&P 500 index falling nearly 20% from February highs but recovering fully by May 22 [1] - Investors are concerned about high tariffs, a proposed major tax bill, and the potential for recession or rising inflation [1] Amgen - Amgen is a pharmaceutical company known for its diverse range of drugs, including Enbrel, Prolia, XGEVA, Otezla, and Repatha [3] - The company is developing a weight-loss drug, MariTide, and has initiated two phase 3 trials [4] - In Q1, Amgen reported adjusted earnings of $4.90 per share, surpassing Wall Street estimates of $4.26, with revenue growth of 9% year over year [6] - Amgen has consistently paid dividends since 2011, increasing them for 14 consecutive years, with a current dividend yield of approximately 3.5% [7] - Management expects free cash flow to rebound to $7.4 billion in 2023, covering the expected $5.2 billion in dividend payments [7] Sirius XM - Sirius XM is a leading digital audio company in the U.S., operating Sirius satellite radio and Pandora, reaching 160 million listeners monthly [8] - The company has faced significant challenges, with stock down about 57% over the last five years due to rising competition and declining subscribers [8] - Management is investing in technology, expanding its podcast network, and streamlining subscription offerings, aiming for a 25% increase in subscribers to 50 million and a 50% increase in free cash flow to $1.8 billion [9] - In Q1, Sirius XM's revenue fell 4.3% year over year, and total U.S. subscribers declined by 2% [10] - The company offers a 4.9% dividend yield, having regularly paid and increased its annual dividend since 2017, with a trailing free cash flow yield close to 10% [11]

Group 1: Berkshire Hathaway's Investment Strategy - Berkshire Hathaway has a massive equities portfolio valued at nearly $277 billion, focusing on companies that buy back stock and pay dividends, providing capital to shareholders without relying heavily on stock price fluctuations [1] - Warren Buffett's investment philosophy includes selecting reliable dividend stocks, which can also benefit retail investors [2] Group 2: Sirius XM - Sirius XM has a dividend yield of 5% and is down about 2% in 2024, outperforming the broader market, with Berkshire Hathaway increasing its stake in anticipation of a turnaround [3][4] - The company aims to add 10 million subscribers to reach approximately 50 million and grow free cash flow by 50% to about $1.8 billion through new pricing options and expanded offerings [4] - Despite a reported loss in 2024 due to a non-cash impairment charge, the dividend payments consumed only about 36% of earnings in 2023, with a free cash flow yield of close to 13% [5] Group 3: Coca-Cola - Coca-Cola has a dividend yield of 2.8% and constitutes about 10.5% of Berkshire's total holdings, being a long-term favorite of Buffett [6] - The company has shown strong performance, with a nearly 17% increase in stock value this year and positive earnings surprises in recent quarters [7] - Coca-Cola has raised its annual dividend for 63 consecutive years and has returned over $93 billion to shareholders since 2010, with a projected free cash flow of about $9.5 billion in 2025 [8]