Buffett’s Bargains: A Schmuck’s Guide to Value

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So, Warren Buffett finally hung up his hat, eh? Stepped down from Berkshire Hathaway at the end of 2025. Big whoop. The man wasn’t immortal, folks. Though, let’s be honest, for a while there, it certainly seemed that way. But the good news is, the stocks he loved – the ones he hand-picked before he started taking extended naps – are now, shall we say,… available. And after the recent market kerfuffle – tariffs, Iran, the usual suspects – some of them are practically begging to be bought. It’s like finding a perfectly good pastrami on sale! And believe me, I know pastrami.

We’re talking about companies in Berkshire’s $310 billion portfolio. That’s a lot of dough, even for a guy who once tried to pay for a hot dog with Monopoly money. And right now, especially in the financial sector, there are some genuinely good businesses trading at prices that make a sensible investor – or a slightly crazy one, like yours truly – perk up. So, let’s dive in, shall we? But put on your life vests. This could get… interesting.

A Financial Powerhouse at a Discount (Oy, the irony!)

First up, American Express (AXP 0.57%). A classic! Buffett loved this company, and for good reason. Berkshire’s been a major shareholder for decades, and it’s treated them nicely. Very nicely. Like a comfortable pair of slippers.

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Amex has done a bang-up job creating fancy credit cards that appeal to everyone from high rollers to… well, people who wish they were high rollers. They’ve even managed to get the younger generation interested. Imagine that! And in 2025, revenue and earnings both grew by double-digit percentages. It’s like they’re printing money! (Which, incidentally, they also do.)

Now, here’s the kicker: Amex is a “closed-loop” card issuer. What does that mean? It means they’re both the lender and the payment processor. It’s like being the chef and the maitre d’! They rake in fees, and they get a nice cut of the interest. Smart, very smart. But, like a comedian who bombs on stage, Amex took a hit recently – down over 20% in the last two months. Economic uncertainty, you know. People get nervous, they stop spending. But this is where we come in. This is our moment! It’s like finding a perfectly good toupee on sale!

The Most Successful Online Bank? (Don’t ask me, I still use a checkbook)

Ally Financial (ALLY 1.90%) isn’t exactly a household name. But trust me, it’s the most successful online bank in the U.S. And believe me, I’ve known a lot of banks in my time. Some good, some… not so good. Let’s just say I once had a run-in with a loan shark named “Fingers” Malone.

Ally started as a spin-off from General Motors (GM 1.44%) after the financial crisis. They became one of the biggest auto lenders, and now they offer high-yield savings accounts, online checking, and all that jazz. They’ve got over $150 billion in deposits – the most for an online-only bank. That’s a lot of nickels and dimes, folks.

Their business is booming. Record auto loan applications in 2025, strong profits, and even their asset quality is solid. Their net charge-off ratio actually fell last year. Can you believe it? It’s like a magician pulling rabbits out of a hat! But, let’s be realistic. The auto lending business is cyclical. If we hit a recession, or inflation goes haywire, things could get bumpy. But, with a valuation of just over seven times forward earnings and a 3.2% dividend yield, Ally’s risk-reward ratio makes a lot of sense. It’s like betting on a horse with a slightly crooked leg – still a good bet, if you ask me!

So there you have it. Two companies, hand-picked by a legend, trading at bargain prices. Now, if you’ll excuse me, I have a date with a pastrami sandwich. And maybe, just maybe, I’ll buy a few shares of these stocks while I’m at it. Don’t tell my broker.

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2026-03-15 17:12