2 Warren Buffett Stocks to Buy Now at an Absurd Discount

Consider investing in these two Canadian stocks that were once a part of Warren Buffett’s portfolio.

| More on:

If there is one person any investor can look to as the shining example of where successful investing can get you, it has to be the greatest of all time, Warren Buffett himself. It is true he has had a long-standing reputation for preferring investing in the U.S. instead of international markets. However, it does not mean Buffett never dipped his feet in the Toronto Stock Exchange (TSX).

The legendary value investor used to have positions in a few Canadian stocks. While he no longer owns shares of these stocks, they are smart buys to consider. Today, we will take a closer look at the two stocks.

Suncor Energy

Suncor Energy (TSX:SU) is a giant in the Canadian energy sector. The $56.61 billion market capitalization Canadian energy stock first became a part of Warren Buffett’s portfolio in 2013. He went on to increase his holdings through eight transactions over the next seven years. In the first quarter of fiscal 2021, his conglomerate sold off his remaining Suncor shares amid the pandemic.

After a substantial rough period, Suncor has made its way back to investor radars. The energy company also works with Petro Canada, giving it exposure to the electric vehicle (EV) space. That said, the integrated energy company’s operations with traditional fossil fuels will continue generating strong cash flows to meet growing demand.

Besides entering the EV space through the fuel retailer, Suncor is adapting to a greener future by investing in renewable energy assets.

As of this writing, Suncor stock trades for $43.10 per share, boasting a 4.83% annualized dividend yield. Down by 14.43.% from its 52-week high, Suncor stock can be a good value stock to hold in your portfolio.

Barrick Gold

Investing in Barrick Gold (TSX:ABX) stock seems like the only way Warren Buffett would ever want to gain exposure to the rare yellow metal.

Despite his dislike of gold as a safe-haven asset without intrinsic practical value, the metals and mining stock became a part of Warren Buffett’s portfolio a few years ago. Barrick Gold is a $37.55 billion market capitalization tier-one gold producer, one of the largest worldwide.

While it also produces significant quantities of copper, gold is its primary bread and butter. Its recent-most quarter saw Barrick Gold deliver lower top- and bottom-line figures. Its sales declined by 0.9% in the June 2023-ending quarter, reporting a 35.7% drop in its net income compared to the same period last year.

The second-quarter 2023 earnings report might have been disappointing. However, the output growth in several mining operations is expected to deliver a substantial boost to its performance in the coming weeks, months, and years.

As one of the most promising names in the gold mining industry, it trades at $21.33 per share at writing. Down by 24.33% from its 52-week high, it can be a good addition to your portfolio today.

  • We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if Barrick Gold Corp. made the list!

Foolish takeaway

While it was surprising to see Warren Buffett offload all his investments in high-profile Canadian stocks, the companies have impressed. Through resiliency since and beyond the pandemic, Suncor Energy stock and Barrick Gold stock have proven to be rock-solid investments. Trading at significant discounts from all-time highs, these can be excellent additions to your self-directed portfolio at current levels.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Canadian dollars are printed
Dividend Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

Toronto-Dominion Bank (TSX:TD) stock could do well in the year ahead.

Read more »

monthly desk calendar
Dividend Stocks

Monthly Income: Top Dividend Stocks to Buy in November

Here are two of the best monthly dividend stocks in Canada you can buy in November 2024 and hold for…

Read more »

profit rises over time
Dividend Stocks

These 2 Dow Stocks Are Set to Soar in 2025 and Beyond

Two Dow Jones stocks are screaming buys but Canadians must hold them in an RRSP or RRIF to avoid paying…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Use Your TFSA to Earn Ultimate Passive Income

If you have a TFSA, then you have the key to creating ultimate passive income. All you need is a…

Read more »

Confused person shrugging
Dividend Stocks

Better Buy: Fortis Stock or Hydro One Stock?

Let's do a compare and contrast of these two top utilities stocks right now, shall we?

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

Boost Your Passive Income: 2 Canadian High-Yielders at a Bargain

Nutrien (TSX:NTR) stock and another play that appear like fantastic dividend bargains in mid-November.

Read more »

3 colorful arrows racing straight up on a black background.
Dividend Stocks

TSX Stocks Soaring Higher With No Signs of Slowing

Three TSX stocks continue to beat the market and could soar higher in an improving investment landscape.

Read more »

Hourglass and stock price chart
Dividend Stocks

Goeasy Stock: Is It Heading for a 52-Week High?

Goeasy stock has been edging higher, especially after another record-setting earnings report. So are 52-week highs in sight?

Read more »