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Value stocks picked by Warren Buffet
31 Oct 2021 (367 views)  

Warren Buffet invested in 3 value stocks - Bank of America, Verizon and Kraft Heinz.

I present their financial indicators below, together with comparable stocks from China - ICBC (vs Bank of America) and China Mobile (vs Verizon). I am not able to find a comparable for the third stock.

Here are my observations:

a)  BOA has a prospective PE ratio of 15.15 times and a dividend yield of 1.76%. ICBC has a prospective PE ratio of 3.64 times and a dividend yield of 7.5%. BOA is 3 times more expensive than ICBC.

b) Verizon has a prospective PE ratio of  9.81 times and a dividend yield of 4.83%. C Mobile has a prospective PE ratio of 7.4 times and a dividend yield of 6.76%. BOA is about 30% more more expensive than C Mobile. Verizon has a total debt to equity (TDE) of 228%. This is exceptionally high for any business.

c) Kraft has a prospective PE ratio of 13.89 and a dividend yield of 4.46%. TDE is 46%, which is acceptable.

Although these are the best value stocks selected by Warren Buffet (i.e. Berkshire Hathaway), the two stocks in China, i.e. ICBC and China Mobile, appear to give better value.


 

Value stocks picked by Warren Buffet
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Warren Buffet invested in 3 value stocks - Bank of America, Verizon and Kraft Heinz.

I present their financial indicators below, together with comparable stocks from China - ICBC (vs Bank of America) and China Mobile (vs Verizon). I am not able to find a comparable for the third stock.

Here are my observations:

a)  BOA has a prospective PE ratio of 15.15 times and a dividend yield of 1.76%. ICBC has a prospective PE ratio of 3.64 times and a dividend yield of 7.5%. BOA is 3 times more expensive than ICBC.

b) Verizon has a prospective PE ratio of  9.81 times and a dividend yield of 4.83%. C Mobile has a prospective PE ratio of 7.4 times and a dividend yield of 6.76%. BOA is about 30% more more expensive than C Mobile. Verizon has a total debt to equity (TDE) of 228%. This is exceptionally high for any business.

c) Kraft has a prospective PE ratio of 13.89 and a dividend yield of 4.46%. TDE is 46%, which is acceptable.

Although these are the best value stocks selected by Warren Buffet (i.e. Berkshire Hathaway), the two stocks in China, i.e. ICBC and China Mobile, appear to give better value.


 

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Because Warren Buffet was always focussed on value stocks. He completely missed AMZN, a growth stock. I think TSLA will also be a growth stock. - it will be interesting to see how any of the mesurements for value will look like when it's applied to TSLA.

Peter Ong  31 Oct 2021  

Dear Mr Tan May I suggest you include TSLA in your comparison.

Peter Ong  31 Oct 2021  

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