2 Warren Buffett Stocks to Buy Now at an Absurd Discount

Berkshire Hathaway, the conglomerate led by Warren Buffett, owns dozens of stocks in its portfolio. After the banking turbulence earlier in 2023, Buffett and his team decided to get rid of some of its bank stocks, and it's easy to understand why. But Berkshire kept a few, and some of them are trading for extremely attractive valuations.

Ally Financial (NYSE: ALLY) isn't exactly a household name, but it is one of the more impressive up-and-coming online banks in the United States. If you aren't familiar, Ally is the former financial arm of General Motors, so it shouldn't be too surprising that its main focus is auto lending. But in the years since it spun off, it has evolved into an impressive financial institution, complete with online checking accounts, high-yield savings, brokerage accounts, credit cards, and other types of consumer loans.

As of this writing, Ally trades for a 22% discount to its book value and for about 9 times forward earnings despite solid results from its business. In the third quarter, Ally's auto loan applications hit an all-time high, and $10.6 billion in new loans were originated with an average yield of 10.7%.

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Source Fool.com