The market, that sly old fox, has grown fat on its own excesses. The S&P 500 (^GSPC) is a giant, greedy beast, priced at more than 25 times its trailing profits and 22 times its forward-looking earnings. These are numbers that make even the bravest investors tremble, like a child hearing the growl of a thunderstorm.
But not all tickers are monstrous. Some, like three peculiar little creatures, are still surprisingly affordable. Here they are-three names that might just whisper sweet nothings to your long-term portfolio.
1. General Mills
The food business is not merely dull. It is a slow-growing, low-margin realm, vulnerable to the sneaky creep of inflation and the chaos of competition. This is why General Mills (GIS) shares have taken a tumble, like a poorly tied balloon slipping from a child’s grasp.
These shares have fallen 44% from their 2023 peak, dragged down by the aftermath of the pandemic and the foolish decisions made during its reign. Sales and profits have dwindled, like a candle in a hurricane.
Yet, the sellers have perhaps overreached, like a hungry wolf chasing a shadow. General Mills, with its brands like Pillsbury and Lucky Charms, is not thriving, but it has a plan-a whimsical, wobbly plan to rethink packaging, pricing, and promotion. While rivals huddle in fear, General Mills will spend more on marketing, like a clever child who knows the game of hide-and-seek better than anyone.
At less than 14 times this year’s earnings, and a dividend yield of 4.9% (a golden egg from a century-old hen), GIS is a bargain. But beware-the market may yet play tricks on you.
2. Alibaba
Alibaba Group (BABA) shareholders have had a curious year. After years of stagnation, the stock has sprouted wings, soaring 93% since 2024. This is no ordinary bird-it is a sleek, silver-scaled dragon, breathing fire into the AI realm.
Its secret? A magic spell called Qwen, a conversational AI that has boosted revenue by 26%. This is the beginning of a grand adventure, as China and the U.S. duel in an artificial intelligence arms race. Morgan Stanley’s wise old owls call it “a sleeping giant awakens,” while Goldman Sachs’s giant owls predict 8% GDP growth from AI’s magic.
But here’s the twist: China’s homegrown AI may fuel the very consumer spending that Alibaba needs. A curious loop, like a snake eating its own tail.
3. Berkshire Hathaway
Berkshire Hathaway (BRK.A) (BRK.B) is a mysterious, towering figure, often overlooked because its stock holdings are so loudly discussed. But it is more than a de facto mutual fund-it is a treasure chest, half filled with cash, half with private businesses like Duracell and Geico.
Valued at 20 times its profits, it is a curious creature. Its operating earnings, like a steady heartbeat, are $40 billion to $50 billion yearly. But its true magic lies in its cash hoard and its private businesses, which act as a shield against the storm.
Even if its stock picks falter, the cash and businesses will protect you. Warren Buffett, the wise old wizard, has a knack for turning lead into gold. Berkshire is a safe haven, though not without its quirks.
So, dear investor, take a bite of these three stocks. They are cheap, but not without their peculiarities. After all, the best treasures are often hidden in plain sight.
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2025-09-23 12:52