It’s almost 2025, and “the Oracle of Omaha” doesn’t seem to be finding much he feels is worth buying. When Warren Buffett’s Berkshire Hathaway reported its earnings last week, the company’s filing revealed that Buffett had been busy selling shares. Specifically, he trimmed his famous Apple position by 20%, and sold other stocks as well, while not buying any new ones.
It doesn’t look like Buffett sees much as being worth buying at the moment, but there is still plenty in his portfolio that he apparently sees as worth holding. In this article, I will share three Warren Buffett stocks that are probably worth owning in November – including one Canadian name the Oracle has owned on again and off again over the years.
Image source: The Motley Fool
Occidental Petroleum
Occidental Petroleum (NYSE: OXY) is a U.S. oil company that Warren Buffett accumulated a position in at levels close to $59. With the stock now at $51.21, you can get in cheaper than Buffett did!
Occidental Petroleum is known for owning a lot of quality assets in the Permian Basin, an oil-rich region in the United States. The company generally runs its oil rigs and lets the profit flow to shareholders, but does not invest too much in exploration. The lack of exploration expenses generally leaves OXY very profitable, which Buffett has said is one of the reasons he likes the stock.
Chubb
Chubb Ltd (NYSE: CB) is a U.S.-based insurance company that Warren Buffett bought shares in last year. It was the famous “mystery stock” that investors knew about in principle for some time but didn’t know the name of, and whose identity they speculated on in many articles and think pieces.
One reason Buffett likes Chubb is because it is a growth stock trading at a reasonable price. Over the last 12 months, the company grew its revenue by 13% and its earnings by 44%. Its growth over the last five years has been similarly strong. Still, the company trades at a mere 12.7 times earnings and 7.6 times cash flow. With its disciplined underwriting practices, it should be able to keep the good times rolling well into the future.
Suncor
Last but not least we have Suncor Energy Inc (TSX: SU), a Canadian integrated oil company that Buffett does not own now, but has owned on again and off again over the years – most recently in 2021.
Suncor is quite possibly Canada’s strongest oil company. It extracts and sells crude, operates gas stations, and also is involved in natural gas and other petroleum-related industries. Basically, it’s a fully integrated oil company that captures profits at many different points along the oil and gas supply chain.
Currently, oil prices are healthy enough for Suncor to be very profitable. The proof is in the pudding: in the last 12 months, the company had a 14.9% net income margin, a 15% free cash flow margin, and a 17% return on equity (ROE). Furthermore, its most recent quarter beat analyst estimates, with $9.5 billion in revenue (beat by $550 million) and $0.92 in earnings per share (beat by $0.12). All-in-all, Suncor is doing well, and if oil prices hold up well like Buffett predicts they will, it should continue doing well.
