The Associated Press had an interesting article about stocks in Warren Buffett’s Berkshire Hathaway portfolio that he believed to be greatly undervalued by the market. These are the five companies he endorses (as of March 28, 2011):
1. Wells Fargo
2. Kraft Foods
3. U.S. Bancorp
4. Swiss Re
These are companies that you can buy now, provided that you fully understand the businesses, at prices that Buffett believes to be lower that their intrinsic value. Regulators questioned whether Berkshire should write down the values of these investments in its portfolio, however, Warren Buffett believes that the market would soon realize their value.
See full article here. Associated Press article
Full disclosure: I own shares of Berkshire Hathaway and U.S. Bancorp.