What actions of FTSE 100 might think that Warren Buffett was cheap in 2025?

Warren Buffett loves index funds. He said that, after his death, he wants most of his assets to be put in low rate index funds for his wife.

Little work is needed, little knowledge and you get the average market return. That is the basic idea. For someone like your wife, with little knowledge of the markets, it is a simple strategy and proven for the time to make your money work for you.

But it is not as he did himself. Buffett did not rise from a relatively modest fund to the billionaire state through indices. Okay, they did not exist in those days. The first of these funds dates back to the 1970s.

Great returns

But even today, Buffett prefers active investment on passive investment. Because? Due to the possibility of market command returns. Your portfolio company Berkshire Hathaway He has annulled about 20% of returns for more than half a century. It seems that the effort is worth, at least for some people.

Where would Buffett start today? I would probably look at the defeated actions, the prices of fallen actions and the sectors that have suffered a little tail. I would look for cheap actions, basically.

In his own words, “Most people are interested in stocks when everyone else is”.

It is human nature to follow a crowd and in many areas of life it is a material advantage. But in the stock market, following what everyone else is doing can be like lemmings that leave the cliff. It is not a good idea.

Expanding the previous appointment, says buffett, “The time to be interested is when nobody else is. You can't buy the popular and do well “.

Many actions from the United Kingdom have shown that this is true until recent times. The airlines received a blow after Covid. Was there any opportunity there? I would say it. The companies were not damaged outside an increase in supply costs. Besides, flying is more popular than ever.

Today's opportunities

British Airways owner IAG He has reaped the rewards, his actions doubled in value during the last year or so.

Buffett is not a fan of airlines for their unpredictability, but I think he would accept that there was value there.

Is there anything like this today? An action that highlights me in this regard is Diageo (LSE: DGE). The drink seller has seen a fall in sales while navigating a leadership change. The actions have lost almost half of their value in the last three years or so. All this while your flagship brand Guinage is booming so much that the company faces calls to discard it in a Ftse 100 own business.

Coincidentally, Warren already has this action, the only British company in the Berkshire portfolio. I also have it and I am happy with the size of my position, but any additional fall in the price and you may have to increase that. Buy bass, sell high, as they say. Well, this could be a low purchase moment.