Warren Buffett Loves This Cheap Stock

The S&P 500 just hit a new 52-week high. And many stocks within the index are now trading at extreme valuations. This is good for existing shareholders. But it makes it tough to justify buying into new positions when they’re overpriced.

Which is why today’s article looks at a cheap, inflation-beating dividend stock that Warren Buffett owns.

That’s right.

We’re talking about Kroger ($KR).

I’ve reviewed this company before. But, I want to revisit this stock because it has traded flat all year.

Today’s article examines what Kroger does and why it’s still cheap.

Kroger Fundamentals And Business

Kroger is the largest supermarket chain in America. They operate 2,721 stores across 35 different states. And, they provide food to 60 million U.S. households.

You may even shop at a Kroger store without knowing it.

That’s because Kroger operates numerous grocery brands such as Ralphs, Mariano’s, Fred Meyer, and Pick ‘n Save.

Kroger is also in the process of acquiring Albertsons. A strategic move that will give the company additional grocery store brands like Safeway, Jewel-Osco, and Market Street.