Surprising Moves! The 5 Stocks Warren Buffett Is Buying Now

13 F filings have come out and here are the five stocks that our friend super investor Warren Buffett is buying stock number one accidental petroleum guys Warren Buffett has been buying this like crazy he owns like 30% through birkshire hathway of this company now guys here's the interesting part you look at the five-year un ocidental you're at 37% growth that's not a ton over the last five years the market is absolutely crushed dead but Warren Buffett loves this company even though look at this return on invested Capital very low very very low so right now waren Buffett right here 25 million shares current value of$ 14.6 billion Guys these are all these purchases along the way what's interesting is they show 19 million shares sold back in early 2020 at roughly $20 a share but then they started buying more as time went on now guys you hear me in my videos I always say don't buy a stock because somebody the internet does or somebody respect does I look at ocidental I've never bought a share of them even though Warren Buffett's buying a ton and here's why I'm baffled as to why he has it I look at this low return on invested Capital he's so big I about talking about Returns on invested capital I look at this saying now they pay two and a half% dividend they are selling for a cheap multiple of free cash flow because the one thing I do like is their five-year average free cash flow is way better than their fiveyear net income but I look at other things I look at it's eight pillars not to say eight pillars determines I'm going to buy or sell a stock but what here is something fun to like I do like the fact that the 5year PE is significally higher than the price free cash flow but debt low return on invested Capital why is that exciting to me why is that exciting to me I don't know income statement a lot of volatility in the price of Revenue why I'm sure that this company like other Commodities based businesses are going to go up and down based on where the underlying commodity goes in price he sees something there that he loves more power to him but for me I look at this saying I don't necessarily get it and I don't understand Commodities and I want you to learn that here's the best investor of all time buying a ton of this company and I'm like I don't get it so I'm not goingon to buy it that's okay you need to be confident enough to say that because if the stock fell in half tomorrow I'd have no idea why it fell in half or if I should buy more waren Buffett does that's why he should stick with it stock number two h e I hio Corp it's an aerospace and defense contractor so let's pull up Warren Buffett's current position very small position 1.04 million shares current value of 188 million and he just recently purchased that so this company's gone up a ton since 2020 look at this what was it at roughly 55 60 bucks a shares and now he's been buying it at $188 a share $170 a share okay he has a million shares outstanding let's sit here and look at eight pillars look at this guys five X's three checks a lot of debt low Roi I'm actually surprised by this also high fiveyear PE man it's kind of surprising to me so Guys somebody in his company clearly likes this now I will say I think there's a lot more buying and purchasing done based on technical analysis at birkshire hathway than people want to admit this is purely speculation but I see them getting in and out of companies all the time I wonder to myself why do they do that and they buy companies like Amazon sometimes and they get out of it I look at this company going where's the attractiveness here for this company where is the appeal a low return on invested Capital with a lot of debt with a high margin sorry with high multiples I I don't really follow this very well there's there's nothing here that appeals to me or would appeal to what I consider to be a value investor now the great thing about Warren Buffett is he likes to give his his soul the guys who manage money for him full autonomy he does not get involved with them he might make a comment but he lets them handle the money that way they want to let's see what the analyst estimates are for this company going forward see yeah it's a lot of it's a lot of eps growth 356 to 637 but it takes 70x free cash flow down to 35 not even down to like 40 and it still takes four years to do that I'm perplexed I don't get this this one owns my brain not going to lie to you now stock number three all Beauty now guys this is a company I do understand better I have position in Ulta again I don't know if Warren Buffett bought it or just somebody at birkshire hathway but again don't buy any stock because anybody in the internet does I like Ulta for many reasons one they have same store sales growth they're not growing just to grow they're after the the women Market which is a great Market to sell to women still like to shop they're going into targets another place that women love they're being smart and strategic about their growth that's what I like about them and they're selling for pretty reasonable valuation with such a high return on invested Capital this one makes more sense to me high return on invested Capital might be a froy price of free cash flow 20 but it makes more sense to me now this company was as low as 320 just recently so these multiples were even better analyst estimates look at this growth apart from next year double digit growth on earnings per share from 26 to $41 a share and revenue growth mid to high single digits I like this I like this a lot now this is a company if you look had a all-time high of 575 back on March 14th of this year fell as low as 318 just last week two weeks ago two weeks ago 318 from 575 four five months before that shows you the volatility that shows you what can happen remember it's important to understand that what we're trying to do here is to shift everybody's thinking we want to shift you from thinking about a stock price going up and down to buying a 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here's what I did in my 10-year analysis on a stock analyzer tool I did three five and 7% Revenue growth I think that's pretty reasonable look at their history 10 years 15% Revenue growth but I don't think they're going to that over the next 10 years profit margin 9 and a half 10 and a qu 11 same with free cash flow and because of the high PE sorry because of the high return on invested Capital that's growing usually I'd go higher than this on PE but it's still retail so I want to be a little more cautious I put 15 18 and 21 now what you could do since the roic so high is put a higher p in and put in a bigger desired annual return I put in 9% this is for my basically my intrinsic value because the market does 9 or 10% return but remember you need to put a margin of safety in there this is just to tell me Paul based on your assumption this is about what the stock is worth the Stock's currently at 378 I have a low price of 341 high price of 660 middle price of 476 so even at today's current price if my middle assumptions occur I might be able to get about a 12% return on my money so you saw how attractive it was at 320 stock number four Sirius XM guys here's some interesting stuff first off they own 133 million shares total value of$ 425 remember guys this is a company with $270 billion not the company birkshire hathway $270 billion in cash this is nothing for them this is literally nothing for them that 270 billion in cash just a 90day treasuries generates what4 billion dollar a year this this eats up one week of their of that money that they earn on that I mean it's very very little here's what's interesting they had two purchases before and they sold a bunch of shares this is where the company spiked probably when when Burkshire hathway bought they bought 10 million bought 31 then sold four million this is what confuses me about burshire hathway this is why you need to make independent decisions why would they do this why sell 4 million shares when they had 41 along the way and when I just if they needed because somebody said to me if somebody said to me well Paul they wanted to buy something else they have 200 and some billion dollars in cash in early 2024 why do you need to sell shares and then went and bought 96 million shares but this makes sense because the stock fell tremendously okay makes more sense but Serious XM let's go look at the company 122 billion market cap $25 billion Enterprise Value that difference here that 13 billion is essentially debt now here's what's interesting their free cash flow is only 1.2 billion a year their 5year average is 1.5 so they're declining their free cash flow the cash flow is decreas increasing they have two x's debt and free cash flow growth now here's what's good though return to invested Capital very high but I just don't get this dividend yield 3% I don't I mean I just really do get confused by some of these moves 52 we low look at this back in June $245 52 we High 578 so let's see what they were doing back in June man 2024 yeah they buying some they were buying that's good they were definitely buying that's pretty good good of them to do that but it's only at 314 a share right now Sirius has a great business the question is is Sirius the new radio let's see what analysts are saying about Sirius I mean there's not much revenue earnings per share growth here but at 40 cents here if you're buying it for $3 you're looking at s and a half times four years from now PE and 10 times today's PE 9 to 10 times okay makes sense High return on invested Capital can they generate the cash flow I mean $1.5 billion in free cash the last five years last year 1.2 billion that's 10 times price of free cash flow okay makes sense I can get that I can understand that to a certain element with a high return on invested Capital stock number five chub Insurance CB guys Burkshire hathway is an expert in insurance this is a company where if I were to copy anybody in Insurance it would be birkshire hathway so guys they currently own 27 million shares $7.5 billion in value that's a big one and you look at the stock it was at $100 a share back after covid and it's currently at $250 a share and they've been buying all along since 200 so they understand insurance that was their business if you don't know this about birkshire hathway Warren Buffett and birkshire have gotten about 20% returns annualized after taxes since they opened their partnership like 1965 but a lot of that is actually using leverage what they do is they use the float from insurance companies what that means is when you pay insurance premium the insurance company who charge you that money expects to pay 100% of that money out in the future 100% of it but their goal is to use that money in that time period to go make money make investments and make the spread that's what Warren Buffett and birkshire hathway have done so they've essentially bored money for free in order to make investments that some people estimate that's increased their returns from 14 or 15% up to 20% now insurance companies are analyzed a little bit different than other companies it's not just like a the understanding the financial of insurance companies is important that's why I look at Warren Buffett and their company that's the fundamental part of their company I have a hard time believing that insurance is going away at the end of the day insurance is just hedging yourself we're always going to have people hedging and companies require this they they're required to have insurance for your home for your car are things like that insurance is not going away there's still going to be useless lawsuits people have to hedge against that so insurance going to be around for a long time and Burkshire haway does a great job of understanding and buying the right insurance companies so guys with all five of these picks I'm all across the board on these again who am I to say Warren Buffett's right or wrong and we don't know which insurance which company's Warren Buffett was personally involved with buying my my guess is accidental and chub and the other three were his people beneath them so if you want to see our other super investors video watch our next video thank you very much for your time