2 Warren Buffett Stocks to Buy Hand Over Fist in November

In the ever-changing landscape of the stock market, it's essential to stay informed about the latest trends and opportunities. Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, has consistently proven his prowess in identifying undervalued stocks and long-term investments. In this article, we will explore two stocks that have caught Buffett's attention and present compelling reasons to consider adding them to your portfolio.

1. Nu Holdings (NU) Nu Holdings, a Latin American fintech play, has been making waves in the financial services sector. Berkshire Hathaway has been an investor in Nubank's parent company since 2021, and its stock has soared by 83% this year. Nu's stellar growth in Brazil and Mexico, along with its solid user economics, makes it a compelling choice for investors.
Nu's user base has expanded rapidly, with 56% of Brazil's adults now having a Nubank account. The company has recently expanded into Mexico and Colombia, serving 104.5 million accounts by the end of June. Nu's user economics are solid, with an average cost of $7 to acquire a new account and just $0.90 spent monthly to serve it. The average monthly revenue per user has climbed to $11.20, making each customer profitable within the first month.
Nu is expected to report third-quarter results on Wednesday, and analysts anticipate another "beat and raise" performance. The company's revenue soared 65% to $2.8 billion in its latest quarter, and momentum suggests another strong showing. Despite a seemingly high valuation of nearly 50 times trailing earnings, the multiple drops to 26 when looking out to next year. Nu's prospects may sour if the economy falters in Brazil, but for now, it remains one of the fastest-growing companies in Berkshire Hathaway's portfolio.

2. Sirius XM (SIRI) Sirius XM, the satellite radio provider, has faced headwinds this year, with its stock cut roughly in half. However, Buffett has been adding to his position, indicating his confidence in the company's long-term prospects. Sirius XM is now trading for just eight times next year's earnings, making it a bargain for value and income seekers.
Sirius XM's subscriber base has been declining, with more users canceling than signing up. This trend has spooked investors, but Buffett seems to believe that this out-of-favor stock is cheap. Sirius XM is the only licensed satellite-radio provider, giving it a significant competitive advantage. Its proprietary content remains valuable, as evidenced by its historically low churn rate.
Despite the subscriber cancellations, Sirius XM's content platform remains valuable, and it offers a 4.1% dividend yield. The company expects to generate $1 billion in free cash flow on $8.675 billion in revenue this year. Although the subscriber base may be shrinking, Sirius XM can still find ways to grow its average revenue per user to offset sluggish subscription trends.

In conclusion, Nu Holdings (NU) and Sirius XM (SIRI) are two compelling stocks that Warren Buffett has shown interest in. Nu's rapid growth and solid user economics make it an attractive choice for investors seeking exposure to the fintech sector. Sirius XM's competitive advantage, valuable content platform, and attractive dividend yield make it an appealing option for value and income seekers. As the market continues to evolve, these two stocks offer promising opportunities for long-term growth and income generation.