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Billionaire investor Warren Buffett, known as the "Oracle of Omaha" and head of Berkshire Hathaway (NYSE:BRKb), continues his successful career, amassing a fortune of more than $100 billion. One of Buffett's main strategies has always been to invest in undervalued stocks with strong fundamentals. That's why it's interesting to look at the latest acquisitions of his Berkshire Hathaway portfolio, especially given that one of Wall Street's leading banks, J.P. Morgan, according to Yahoo.
According to TipRanks, the first stock Buffett bet on was Capital One Financial. Capital One is a Virginia-based bank holding company known for its activities in credit cards, retail and commercial banking, and auto loans. Despite some decline in the company's revenue in the last year, Buffett purchased 9,922,000 shares of Capital One Financial worth approximately $902.4 million. Analyst at J.P. Morgan's Richard Shane was also positive on Capital One Financial's stock, with a target price of $111.27, suggesting upside potential of 22% from the current share price of $90.95.
The second stock that caught the attention of Warren Buffett is HP Inc (HPQ). HP Inc separated from parent company Hewlett-Packard in 2015 and specializes in manufacturing computers and printers. Although the company has experienced some revenue decline in recent quarters, Buffett has increased his stake in HP Inc by 16% by purchasing 16,476,783 shares, more than 120.9 million HPQ shares worth about $3.59 billion. J.P. Morgan also expressed optimism about HP Inc shares, believing that the recovery in consumer activity and demand for PCs contributes to the company's growth. HP Inc's current trading price is $29.66 with an average target price of $29.38.
Thus, the latest acquisitions in Warren Buffett's Berkshire Hathaway portfolio, as well as support from J.P. Morgan, are of interest and can serve as an example of successful investments in undervalued stocks with strong fundamentals.
