Warren Buffett doesn't need any more money. He's making more this year anyway. His Berkshire Hathaway (BRK.A -0.76%) (BRK.B -0.69%) stake is up 8% so far in 2023. This gain is largely due to several big winners in the conglomerate's portfolio, notably including Apple.
However, the legendary investor owns some losers, too. At least some of them could be on track to return to their winning ways of the past. Here are three beaten-down Buffett stocks to buy right now.
1. Bank of America
Bank of America (BAC -0.21%) ranks as the second-largest holding in Berkshire's portfolio. Berkshire bought even more shares in the first quarter of 2023.
Buffett no doubt loves the bank stock's valuation. Bank of America's shares have fallen around 15% year to date as a direct result of the banking crisis precipitated by several small bank failures. The stock currently trades at less than eight times forward earnings.
Some view Bank of America as "too big to fail." Importantly, the company isn't in any jeopardy of failing. Actually, it's achieving quite a bit of success. Bank of America posted strong revenue and earnings growth in the first quarter.
I think BofA's growth prospects look solid, especially considering its track record of technological innovation. The bank's dividend yield of over 3.1% also looks attractive.
2. Occidental Petroleum
You won't find many stocks that Buffett likes more these days than Occidental Petroleum (OXY -0.15%). He added nearly 9% more shares to Berkshire's stake in the oil and gas producer in Q1.
Occidental stock is down around 9% so far in 2023. That's not because of any company-specific problems, though. Instead, its share price has suffered because oil prices have fallen.
It's possible, however, that oil prices could rebound this summer with increased demand. Saudi Arabia's significant production cuts could also contribute to an improved pricing environment.
I fully expect Buffett to continue scooping up shares of Occidental, too. Berkshire secured regulatory approval last year to acquire up to 50% of the oil company. Its stake currently stands at slightly under 25%.
3. Chevron
While Buffett seems to prefer Occidental right now, Chevron (CVX 0.37%) remains the oil stock in which Berkshire has the biggest position. The oil giant makes up 5.6% of Berkshire's overall portfolio.
Chevron stock has fallen close to 14% year to date. As was the case with Occidental, lower oil prices have taken a toll on Chevron's share price.
But this decline has made Chevron's valuation more attractive than it's been in quite a while. Shares trade at a forward-earnings multiple of below 10 times. Its free-cash-flow yield of below 9% also is the lowest it's been in years.
I think that Chevron is poised to rebound once oil prices move higher -- which they almost certainly will do sooner or later. In the meantime, patient investors will be rewarded with a great dividend yield of over 3.9%.
Investors should also be treated to additional "invisible dividends" from Chevron. I'm referring to the company's stock buybacks. Chevron announced a $75 billion share-repurchase program earlier this year. That amount reflects more than 25% of the company's current market cap.
