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Value stocks picked by Warren Buffet
31 Oct 2021 (365 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.