Warren Buffett's 3 Best Bargains Under $30

The article highlights three Berkshire Hathaway holdings trading under $30: Kraft Heinz at $22.42, Sirius XM at $26.77, and Nu Holdings at $14.16. Kraft Heinz posted FY2025 free cash flow of $3.66B and a 7.06% dividend yield but guided FY2026 EPS below FY2025; Sirius XM reaffirmed about $1.35B of free cash flow and has a 3.97% yield despite subscriber leakage; Nu Holdings delivered 62.48% YoY revenue growth to $4.857B with 35% adjusted ROE. Overall tone is selective and cautious, emphasizing valuation support and cash generation alongside operational and FX risks.

Analysis

The market is treating Berkshire’s under-$30 names as a generic “value basket,” but the dispersion is the point: KHC is a classic balance-sheet cash harvester, SIRI is a levered FCF story with shrinking top-line but unusually visible capital returns, and NU is the only true duration asset in the set. That means the winners are not the same across regimes — KHC benefits if rates stay elevated and defensives re-rate, SIRI benefits if management can stabilize churn while monetizing ad inventory, and NU benefits if Latin American credit growth remains strong and FX stops being a reporting headwind.

Second-order effects matter more than the headline prices. A rebooted KHC marketing spend is effectively a competitive-tax increase on smaller packaged-food peers that lack scale to absorb similar investment, so margin pressure may hit the middle tier first. For SIRI, the YouTube partnership is less about subscriber growth than about improving ad-load utilization and pricing power; that creates a potential read-through to audio/ad tech intermediaries if inventory quality improves, while any inability to stem subscriber leakage would cap multiple expansion within 1-2 quarters.

The contrarian read on NU is that the market may still be underpricing institutional-quality compounding because the stock trades more like an EM fintech than a bank. The key risk is not growth deceleration per se, but a mismatch between rising credit costs and slower revenue recognition in USD terms if BRL/MXN weaken; that can create sharp estimate volatility even when local-currency fundamentals remain intact. In contrast, KHC and SIRI are more likely to trade off guidance credibility over the next 3-6 months than off absolute earnings strength, making them better candidates for tactical income trades than long-duration compounders.

Key Decisions for Investors

• Long NU on pullbacks into the low-$14s with a 6-12 month horizon; risk/reward favors owning the only secular growth name in the basket, but size smaller than a domestic compounding equity because FX and credit costs can re-rate the stock 15-20% in either direction.
• Sell upside in KHC via covered calls or a short-dated call spread while collecting the dividend; the stock is likely to stay range-bound over the next 1-2 quarters unless management shows visible volume stabilization, making premium capture the cleaner expression.
• Pair trade: long SIRI / short a weaker media-adjacent name if available in the book, or use SIRI as a cash-yield carry position; the setup works only if FCF remains intact, so stop out on any renewed subscriber or ad-revenue deterioration in the next earnings print.
• Avoid benchmarking BRK.B as a single trade signal; instead, rotate capital from the parent into the strongest subsidiary-level expressions, since Berkshire’s underperformance can coexist with outperformance in selected holdings for several quarters.
• For event-driven traders, consider a KHC downside put spread into the next guidance cycle; if management fails to show improvement in volume/mix, the market can quickly compress the multiple toward low-teens earnings without needing a major earnings miss.