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Berkshire's 'ridiculously cheap' option: Pro

Scott Black, the president and founder of Delphi Management, loves cheap stocks.

Lucky for him, he found three amid a roller-coaster year for equities. The money manager gave CNBC's "Squawk Box" his three best value plays to help deal with this year's violent swings in the stock market, including one of the market's biggest names.

For his first pick in the Platinum Portfolio challenge, a running contest between top money managers, Black chose Berkshire Hathaway Class B shares as a much cheaper alternative to its about $190,000-per-share older brother, the company's Class A shares.

Read MoreHedge funds suffer worst start to year since 2008

Black said Berkshire's Class B shares trade at less than half the average stock's price-to-book ratio, calling it a "ridiculously cheap" stock.

"I can assure you that Warren Buffett is much smarter than the average idiot in the S&P 500," Black said. "This is very good resistance against a sluggish economy."

Read More Stock picks in the 'Squawk Box' Platinum Portfolio

He also named PDC Energy as an undervalued stock with high upside. The oil-and-gas company has a strong position in Colorado's Wattenberg gas field, and its drill bit production is "exploding," Black said.

Lastly, Black said memory chip maker SanDisk should continue to expand its bottom and top lines, and he forecast the company raking in 10 percent profit growth in fiscal 2014. SanDisk is the biggest player in the flash memory sector, owning more than half of the market, he said.

"I've liked it a long time," Black said. "They dominate."

Disclosure: Black and his fund do not own the three stocks he named.

—By CNBC's Jeff Morganteen.

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