Buffett's picks: Morningstar names three undervalued stocks from Berkshire's portfolio
Analysts found securities with the highest growth potential among the holding company's assets
Almost all major positions in the portfolio of investment holding Berkshire Hathaway Warren Buffett is now valued fairly or even overvalued, but three companies look noticeably cheaper than their real value, according to analysts Morningstar. Experts are confident that they retain strong competitive advantages and growth potential - and most Wall Street analysts agree.
Details
Three companies in Berkshire Hathaway's portfolio that Morningstar believes look undervalued are alcoholic beverage maker Constellation Brands, ratings agency Moody's and health insurer UnitedHealth Group.
Analysts took notice of the stock following the release of the holding company's Form 13F report for the third quarter of 2025 on Nov. 14.
Berkshire first bought shares of the beer, wine and spirits producer and distributor in the fourth quarter of 2024. Constellation Brands' securities are down 39% in 2025 due to weakening demand for alcohol, Morningstar analysts said .
Despite the drawdown, the company maintains a strong position with its popular Corona and Modelo beer brands. Analysts expect the new lines - including citrus and non-alcoholic variants - to appeal to consumers focused on healthier lifestyles. At the current price of about $129, Morningstar experts see the stock as attractive.
Shares of Constellation Brands were little changed at the premarket on Nov. 17, down 0.03%. The market values Constellation Brands below fair value: according to MarketWatch, 16 analysts recommend buying the securities, eight suggest holding, only one considers them overvalued and one more advises selling.
Shares of one of the world's leading rating agencies remain a long-standing asset in Berkshire's portfolio and are among the top ten most significant positions of the holding. Now the securities are trading at a rare discount - almost 15% to the fair value of $550, calculated by Morningstar, analysts note.
Since the beginning of the year, Moody's shares have added only 4% amid concerns about a decline in debt offerings, explains Morningstar analyst Rajiv Bhatia. He and his colleagues believe that the temporary decline in bond market activity does not undermine the fundamental strength of Moody's business: the company still maintains a sustainable competitive advantage due to its reputation and key role in the financial system.
At the current price of about $479, Moody's stock looks like an attractive buy for a Warren Buffett-style long-term investor, Morningstar analysts conclude.
At the pre-market on November 17, the securities were slightly more expensive - by 0.1%. Most analysts from Wall Street expect further growth of shares: 15 experts believe that they should be bought, another 12 suggest holding them.
Berkshire bought $2 billion worth of shares in the largest health insurer in the U.S. in the second quarter of 2025, a deep drawdown that saw the securities plunge 40% on rising costs, weak reporting and regulatory scrutiny.
UnitedHealth stock is up 23% over the past three months, but still looks undervalued by about 33% relative to Morningstar's $427 valuation.
At the pre-market on November 17, the securities added about 0.1%. According to MarketWatch, the majority of analysts expect further growth: 20 of them recommend to buy shares, seven - to hold, one considers securities overvalued, and one more advises to sell.
This article was AI-translated and verified by a human editor
