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Billionaire Birdsong: Warren Buffett’s Lowest PE Stocks
Posted by: Sally Jones (IP Logged)
Date: October 7, 2013 05:22PM

Here’s a look at Warren Buffett's cheap but quality companies with the lowest price over earnings ratios. According to GuruFocus research, Warren Buffett’s Berkshire Hathaway Inc. (BRK.A)(BRK.B) currently holds three stocks with P/Es under 10.0, as of June 30, 2013.

Most notable is the Phillips 66 (PSX) drop in Buffett’s one year of holding.

Phillips 66 (PSX)

Predictability: Not Rated

Up 27% over 12 months, Phillips 66 has a market cap of $35.61 billion; its shares were traded at around $58.28. The P/E ratio is 7.90.

Phillips 66 is a downstream energy company. The company's segments include: Refining and Marketing (R&M), Midstream, and Chemicals. The Phillips 66 chemicals business is conducted through its 50% interest in Chevron Phillips Chemical Company LLC.

Historical share pricing, revenue and net income:



Guru Action: As of June 30, 2013, Warren Buffett’s Berkshire Hathaway Inc. holds 27,163,918 shares, valued at around $1.60 billion, and a portfolio weight of 1.8%.

In the second quarter of 2013, Berkshire Hathaway took a loss 7.1% on the holding of 27,163,918 shares bought at an average price of $62.83.

Since the second quarter of 2012, Berkshire made a gain of 78% on the holding of 27,163,918 shares bought at an average price of $32.76.

Liberty Media Corporation (LMCA)

Predictability: Not Rated

Up 36% over 12 months, Liberty Media Corporation has a market cap of $17.81 billion; its shares were traded at around $147.74. The P/E ratio is 2.20.

Liberty Media Corporation owns interests in a broad range of media, communications and entertainment businesses. Those interests include subsidiaries Atlanta National League Baseball Club, Inc., and TruePosition, Inc., and interest in SiriusXM, Live Nation and Barnes & Noble, and minority equity investments in Time Warner Inc. and Viacom.

Historical share pricing, revenue and net income:



Guru Action: As of June 30, 2013, Warren Buffett’s Berkshire Hathaway Inc. holds 5,622,340 shares, valued at around $712.6 million, and a portfolio weight of 0.8%.

In second quarter Berkshire Hathaway Inc. gained 23.8% on the holding of 5,622,340 shares at an average price of $119.32.

Deere & Co. (DE)

Predictability: 3.5 out of 5 Stars

Up 0 % over 12 months, Deere & Co. has a market cap of $31.68 billion; its shares were traded at around $82.74. The P/E ratio is 9.50.

Incorporated in 1958, Deere & Company is a provider of advanced products and services for agriculture and forestry, and a major provider of advanced products and services for construction, lawn and turf care, landscaping and irrigation. The company and its subsidiaries have operations which are categorized in three business segments: agriculture and turf; construction and forestry, and credit.

Historical share pricing, revenue and net income:



Guru Action: As of June 30, 2013, Warren Buffett’s Berkshire Hathaway Inc. holds

3,978,767 shares, valued at around $323 million, and a portfolio weight of 0.36%.

In second quarter Berkshire took a loss of 4.5% on the holding of 3,978,767 shares at an average price of $86.44.

Since the third quarter of 2012, Berkshire Hathaway Inc. had a gain of 6% on 3,978,767 shares bought at an average price of $78.10 per share.

Have a look at Warren Buffett’s other lowest P/E stocks.



In a recent update from GuruFocus, the Berkshire Hathaway portfolio lists 42 stocks, two of them new, and a total value of $89.03 billion with a quarter-over-quarter turnover of 3%. Warren Buffett is called “The Oracle of Omaha” and is the most successful investor in history.

Here is the complete portfolio of Berkshire Hathaway Inc.



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Check out the GuruFocus special feature 52-week low screener to find the stocks hitting new lows but are still held by top investor Gurus and Insiders.




Guru Discussed: Warren Buffett: Current Portfolio, Stock Picks
Stocks Discussed: PSX, LMCA, DE, BRK.A, BRK.B,
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