Warren Buffett might be handing over the baton at Berkshire Hathaway Inc. (NYSE: BRK.A & BRK.B), but he will always be revered as one of the greatest investors of all time.
From Apple Inc. (NASDAQ: AAPL) to BYD Ord Shs A (SHE: 002594), Buffett has more than proven that his picks can eventually beat the market with unbelievable returns. That said, Buffett has had his fair share of loses with the likes of Tesco PLC (LON: TSCO) and Paramount Skydance Corp (NASDAQ: PSKY).
Interestingly, some of the stocks that Buffett has purchased have gone even cheaper in prices, and he’s still holding onto them, as the fundamentals may not have fully unfolded yet.
So if these companies are right up your alley in terms of turnaround and risk appetite, you could actually snap them up at prices even better than Warren Buffett did!
Here’s the list of 5 stocks you can buy cheaper than Mr Buffett did.
1. Occidental Petroleum Corp (NYSE: OXY)
Occidental Petroleum Group (NYSE: OXY) is a major energy company focused primarily on oil and gas production, with operations spanning the U.S., Middle East, and Africa. Warren Buffett’s Berkshire Hathaway holds a significant stake of nearly 28% in Occidental, reflecting strong confidence in the company’s long-term value and management under CEO Vicki Hollub. In 2025, Berkshire Hathaway made a landmark US$ 9.7 billion all-cash acquisition of Occidental’s chemical division, OxyChem, aimed at reducing Occidental’s heavy debt load and sharpening its focus on core upstream oil and gas activities.
Despite Buffett’s significant investment and ongoing support, Occidental’s share price has declined by about -10% year-to-date in 2025, driven by several factors. Key reasons include investor concerns that the divestment of OxyChem removes a steady cash-flow business, leaving Occidental more exposed and dependent on the volatile oil sector.
Additionally, the broader energy market has faced pressure as oil prices dropped to four-month lows amid fears of oversupply. Analysts also note that Occidental’s valuation appears high relative to some peers, with a forward price-to-earnings ratio of 20 compared to the energy sector median of 13, leading to skepticism about near-term growth prospects and profitability pressures evidenced by a recent 6% drop in revenue year-on-year.
2. Kraft Heinz Co (NASDAQ: KHC)
Kraft Heinz Co (NASDAQ: KHC) was formed in 2015 through a high-profile merger orchestrated by Warren Buffett’s Berkshire Hathaway and private equity firm 3G Capital. Despite Buffett’s strong endorsement and Berkshire Hathaway owning a large 27.5% stake in the company, Kraft Heinz’s share price has faced a prolonged decline, falling nearly -70% since the merger.
The company’s challenges stem from changing consumer preferences away from packaged and processed foods towards fresher, healthier options, which has impacted net sales and revenue growth. Additionally, cost-cutting measures widely implemented after the merger have been criticised for under-investing in brand development and innovation.
In 2025, Kraft Heinz announced plans to split into two separate companies, dismantling the merger that Buffett had helped create, a move that Buffett publicly expressed disappointment about. The split aims to separate Heinz’s sauces and condiments from Kraft’s North American grocery staples, but investors remain wary about the company’s future prospects. Additional burdens include significant impairment charges amounting to US$ 9.3 billion due to the sustained decline in market value.
The company’s operations are normal, but is being bogged down by writedowns, hence pulling it down in the red.
3. Constellation Brands Inc (NYSE: STZ)
Constellation Brands Inc (NYSE: STZ) is a leading producer and marketer of alcoholic beverages including popular beer brands like Modelo and Corona, as well as wine and spirits. Warren Buffett’s Berkshire Hathaway has significantly increased its stake in Constellation Brands in 2025, doubling its holdings to about 6.6% of the company’s market capitalisation, reflecting Buffett’s confidence in the company’s long-term value and strong brand portfolio.
However, despite Buffett’s investment, Constellation Brands’ share price has declined by around -40% in 2025 due to multiple headwinds. The company lowered its fiscal year guidance citing a “challenging macroeconomic environment” that has dampened consumer spending on premium beer, leading to decreased purchase frequency and spending per trip among customers.
Source: highrisebev.com
Tariffs on beer imports in the U.S. have also hurt sales volume. Constellation expects a 4-6% drop in organic net sales, a significant revision from prior forecasts. Furthermore, industry-wide trends show shifting consumer preferences away from traditional beer toward alternative beverages such as tetrahydrocannabinol (THC) and cannabidiol (CBD) infused drinks, particularly among younger consumers.
4. UnitedHealth Group Inc. (NYSE: UNH)
UnitedHealth Group Inc. (NYSE: UNH), the largest U.S. health insurer and healthcare services provider, has experienced a challenging year in 2025 with its stock down approximately -30% year-to-date. Despite this decline, the company remains fundamentally strong, with revenue growth and resilient operations primarily driven by its UnitedHealthcare insurance division and Optum health services arm.
The stock’s recent performance has been impacted by rising medical costs, margin pressure, and weaker results in parts of its healthcare services, particularly Optum Health, where revenue declined 7% due to legacy contract changes and Medicare Advantage funding reductions.
2025 was a year mired by scandals and incidents. UNH went under criminal investigation for alleged Medicare fraud and a securities class action lawsuit was filed alleging the company misled investors about its 2025 financial outlook, followed by a sharp downward revision of its full-year profit guidance.
While the business remains resilient, the company is on high scrutiny of ongoing investigations, that could see the company emerging innocent or guilty.
5. Domino’s Pizza Inc. (NASDAQ: DPZ)
Domino’s Pizza Inc. (NASDAQ: DPZ), a global leader in pizza delivery and carryout, has experienced relatively stagnant stock performance over the past five years, with a total return of about 10% including dividends—effectively flat when adjusted for inflation as of 2025.
After a slow start to 2025 with soft U.S. sales, Domino’s has shown signs of recovery in the second quarter driven by new menu innovations, improved distribution through aggregator platforms like Uber Eats and DoorDash, and solid growth in international markets. These factors helped boost same-store sales and overall revenue by about 4.3% in Q2 2025.
While 99% of Domino’s stores are franchised, giving it the ability to compound its earnings with heavy capital requirements, the fast food business is notoriously competitive and saturated.
And with a P/E close to 25x, its nowhere considered cheap, regardless of its brand and appeal.
Are these stocks fair or fantastic and trading at fair valuation or fantastic valuation?
One man’s meat is another man’s poison. The five companies mentioned each have their own flaws and face challenges that would affect them over the mid to long term time frame.
Unless OXY finds a way to manage fluctuating oil prices, KHC delivers a new product that catches the world by storm, or Corona becomes the de-facto beer that everyone’s squeezing lime into, it really is tough to fathom the long term prospects of these companies.
And while business is strong for the likes for UNH and DPZ, lawsuits or change in consumer sentiments can wreak havoc on their share prices.
I realise that I tend to skew away from troubled companies, even thought the valuations may seem enticing. So, even if I find valuations attractive, I would fall back and add on to BRK shares rather than take on the individual stock risks.
But that’s just me. You could be the one spotting the next turnaround winner that moves BRK’s portfolio by leaps and bounds if your thesis plays out!
If you’re looking for more stock ideas, Alvin shares how he finds the best stocks to invest in to grow our Dr Wealth portfolio. Learn more here.
