Börse Express – 3 Warren Buffett stocks that most investors missed

Warren Buffett is one of the most successful investors of all time and he has gained a huge following in the investor community. Many people closely follow every step of Buffett, which is easy because Berkshire Hathaway is required by law to regularly disclose its equity portfolio.

Most Buffett watchers are like Berkshire’s top stocks Apple and Kraft Heinz familiar. But there are some smaller stocks lurking under the radar that aren’t getting as much attention – though they’re promising enough to make their way onto Buffett’s buy list. Let’s take a closer look at three stocks that you may not even know are Buffett’s elect.

StoneCo

StoneCo (WKN: A2N7XN) has not been in Berkshire’s equity portfolio for very long and it was a special feature for Buffett’s companies, as Berkshire invested in StoneCo’s IPO at the end of 2018. Buffett has not done this very often, and in fact most Berkshire observers believe that investment manager Todd Combs was largely responsible for it.

StoneCo has become a notable player in the payment business, serving the Brazilian market with financial services, including point-of-sale terminals for hundreds of thousands of local merchants. In addition to the larger investments from the US payment giants Visa and MasterCard Berkshire’s position of about $ 600 million at StoneCo doesn’t seem like a big deal. But the stake corresponds to a 5% stake in StoneCo. If the Brazilian economy is doing well and StoneCo is able to expand successfully in the region, investors could make even bigger profits than the almost 80% increase in the fintech company’s share price last year.

Axalta Coating Systems

Many of Buffett’s companies are located in relatively quiet corners of the market, which are usually the best places to discover stocks with hidden value. Axalta Coating Systems (WKN: A12EDV) is a good example of this because the company focuses on the production of paints and special coatings with protective properties. Axalta has a significant presence in the car and truck market, exposing its business to the typical cyclical ups and downs that many auto parts suppliers face.

Axalta itself believes that the company is underestimated, and that is one of the reasons for the decision last year to look again for strategic alternatives that could include the sale of certain business areas. Berkshire’s $ 700 million stake in Axalta is about 10%, which would put Buffett in a particularly good position to benefit from a sale. However, the ongoing search makes it difficult for those who want to invest directly in Axalta, and the waning hope that the company will find a buyer has pushed the share price down until early 2020.

Globe Life

Globe Life (WKN: A2PP68) may seem like a new name to Buffett watchers, but some are under with the insurance company their previous names be more familiar. Globe Life changed its name from Torchmark in August to show that the company is striving to be a leader in the insurance industry. Globe focuses on supplementary life and health insurance with products specifically designed to provide different types of financial protection to millions of families.

Buffett’s stake in Globe Life is more than $ 660 million; H. just under 6% of the shares in the company. Berkshire’s stake in Globe has been around for decades, so it is likely that the insurance provider will remain in Buffett’s portfolio, with its typical hold forever mentality providing the logic.

What you can learn from Buffett’s investments

It’s easy to understand why Warren Buffett invests in giants like Apple, but you can learn a lot by looking at what motivates him to hold less in demand stocks like these three. Buffett’s portfolio reflects many different factors that influence his decision-making process regarding the purchase of shares. If you know these factors and apply them to your own portfolio, you can learn from Buffett’s approach and improve your own investment results.