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Three Exceptional Gems: The Undervalued Warren Buffett Stocks Poised for a Surge in April 2024

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Entering the tumultuous waters of the stock market armed with personal strategies can be as overwhelming as navigating a labyrinth blindfolded. In such precarious times, it’s a wise move to tread alongside seasoned investors like Warren Buffet, who possess an illustrious history of sustainable success in this intricate game. Thus, delving into the realm of undervalued Warren Buffett stocks to acquire in April remains not just relevant but essential for investors seeking a solid footing.

Kroger (KR)

A stalwart in Buffet’s list of undervalued gems is the grocery colossus, Kroger (NYSE: KR). While not the shiniest apple in the orchard of stock picks, it stands as a beacon of stability with a remarkable track record. A shining testament lies in its robust stock market gains, boasting nearly a 160% return over the past five years and a year-to-date increase that has outshone the S&P 500 by a substantial margin, clocking in at roughly 25%.

The speculation around Kroger’s potential merger with Albertsons has left market analysts scratching their heads, especially after the Federal Trade Commission (FTC) threw a wrench into the works with a lawsuit halting the process. Despite this setback and mixed fiscal results accompanied by guidance for 2024, KR stock emerges as an enticing undervalued choice with a compelling bullish narrative. At a mere 0.3 times forward sales estimates, coupled with a remarkable 2% yield and a free cash flow base surpassing $3.43 billion, Kroger makes a strong case for investment.

Berkshire Hathaway (NYSE: BRK-A, NYSE: BRK-B) has anchored itself in Kroger’s future by owning 50 million company shares, representing a respectable 0.8% of its total portfolio.

BYD Co. (BYDDF)

The Chinese EV juggernaut, BYD Co. (OTCMKTS: BYDDF), rocked the boat last year by overtaking Tesla (NASDAQ: TSLA) in overall EV sales during the fourth quarter, cementing its position as the largest electric car manufacturer globally. Ending Q4 on a high note with 526,409 EV deliveries, BYD sprinted ahead by almost 42,000 more cars than its American counterpart.

With a staggering 81% spike in net profit in 2023 and a 62% rise in sales volume to a record 3.02 million vehicles, BYD’s ambitions soar higher as it targets selling 3.6 million cars this year, marking a 20% surge from the previous year’s output. This thriving narrative is further enriched by January’s 48% year-over-year sales leap, showcasing BYD’s resilience even in a sluggish EV market. Remarkably, BYDDF stock continues to trade below 0.8 times forward sales estimates, holding a 0.6% stake in Berkshire Hathaway’s portfolio with the conglomerate possessing 87.6 million shares.

The Liberty SiriusXM Group (LSXMK)

The long-anticipated merger between The Liberty SiriusXM Group (NASDAQ: LSXMK) and Sirius XM finally unfolded late last year, putting an end to widespread speculation and paving the way for a new satellite radio behemoth. This alliance promises substantial long-term value creation for shareholders through expanded market outreach, optimized operations, and enhanced free cash flow prospects.

Following substantial gains in the past six months, the market has wholeheartedly embraced this narrative, viewing the merger as a low-risk move that positions the revamped SiriusXM for sustainable growth in the foreseeable future. Berkshire Hathaway has signified its firm belief in this trajectory by recently acquiring 2.52 million shares of LSXMA, bolstering its stake to 32.75 million, equivalent to a 10% ownership in the company and a 0.27% portfolio allocation.

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