Investors unnerved by the ongoing global growth issues and a likely upheaval in the markets post Fed lift-off, might hunt for safe and value stocks in the coming days.  
 
But for that, one would need an investing guideline to pick the right value stock from a bunch of availabilities. In this regard, Warren Buffett’s classic value investing style can be a paradigm.
 
After all, this Wall Street guru has effectively parked his money in the right places and is continuing to reap huge returns. Buffett’s Berkshire Hathaway has enjoyed an average growth rate of about 20% annually.

While investing in Berkshire is always a good way of following Buffett, also called The Oracle of Omaha, there are numerous other ways of reproducing this stock market veteran’s investment theme to add a spark in one’s portfolio.

Buffett, presently, is taking interest in companies trading below what he believes is their intrinsic value. He is a fan of value investing and targets long-term outperformance even at the cost of short-term underperformance. We have analyzed a few stocks that are Buffett’s favorites and highlight the related ETFs for those who want to follow this investment veteran (read: Guide to Guru ETF Investing). 

Following Buffett

Energy 

The sector can be viewed as a contrarian bet especially given the persistent plunge in oil prices for about one and a half years. But, Warren Buffett added oil giant Phillips 66 (PSX) in the third quarter. As much as 10% of Berkshire is now invested in Phillips 66.

No wonder, a person who said, “most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well,” took a bold step like investing such a huge stake in a beaten down sector.

Phillips 66’s adjusted third-quarter 2015 earnings of $3.02 per share surpassed the Zacks Consensus Estimate of $2.27 and improved from the year-ago quarter level of $2.02. However, revenues of $26.42 billion were significantly below the Zacks Consensus Estimate of $32.9 billion.