Warren Buffett has had a difficult year as the Berkshire Hathaway stock price has crashed by almost 25% from its peak this year. The stock is trading at the lowest point since December last year. As a result, according to Bloomberg, his net worth has crashed by about $12 billion. This performance means that it is possible for investors to scoop some cheap Warren Buffett stocks.
Moody’s
Moody’s (NYSE: MCO) is one of the best-known financial services companies in Warren Buffett’s portfolio. It is a company that provides credit rating services to governments, intergovernmental sectors, and companies. The firm offers its services in two key segments: Moody’s Investor Service and Moody’s Analytics.
Moody’s is a good Warren Buffet stock for several reasons. First, the stock is relatively cheap having fallen by more than 30% from its YTD high. Second, the company has a reasonable valuation compared to its peers. And most importantly, it has a strong market share in its industry. Generally, Moody’s has managed to co-exist well with its global peers like S&P Global and Fitch.
Verisign
Verisign (NYSE: VRSN) is another Warren Buffett stock that has crashed by 33% from its highest level this year. It is a company that most people have never heard about although they use its services on a daily basis.
Verisign is a company that provides domain name registry and infrastructure services. It operates the most popular directory for .com, .net, .cc, .edu, and .name services. Therefore, all websites with these suffixes pay an annual fee to the company through their brokers.
Further, the firm provides operations infrastructure services through its data centers in over 100 sites globally.
Verisign is a good Buffett stock because of its dependable earnings, high profitability, and strong moat that exists in its industry.
RH
RH (NYSE: RH) is another beaten-down Warren Buffett stock. The shares have crashed by over 70% from the highest point this year. The most recent plunge happened last week when the company warned about its forward guidance.
For starters, RH, formerly known as Restoration Hardware, is a leading company that provides high-end furniture and home decor solutions. Therefore, because of its industry, it is relatively easy to see why the shares have plummeted.
Demand for its products has declined as inflation bites. At the same time, the soaring cost of doing business has led to thin margins. Still, there is a possibility that the company’s stock price will bounce back soon.
There are other Warren Buffett stocks that have dropped sharply this year. For example, tech names like Snowflake, StoneCo, and Nu Holdings have plummeted by over 70% from their YTD highs.
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