Warren Buffett's 10 Favorite Stocks With Low P/E Ratios

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Includes: BK, COP, GCI, GHC, MTB, TMK, USB, WFC, WMT, XOM
by: Insider Monkey

Warren Buffett is one of the top investors of the past century. His every move is closely followed by investors and mainstream media. Unfortunately, he doesn't trade very often. When he buys stocks, he holds them for years. So investors who are worried about short-term returns can't really gather much intelligence from Buffett's holdings.

We compiled the list of Buffett’s Berkshire's 13F holdings that have low PE ratios. All companies in this list have a PE ratio of lower than 13. (See Buffett's portfolio here).

(Market data is sourced from Finviz)

1. Gannett Inc. (NYSE:GCI): Gannett Inc. is a media and marketing solutions company operating worlwide. GCI recently traded at $10.94 and has a 2.83% dividend yield. GCI lost 14.05% during the past 12 months. The stock has a market cap of $2.7 billion and P/E ratio of 5.3. Buffett had $27 million invested in GCI shares. John Rogers’ Ariel Investments and Randall Smith’s Alden Global Capital had GCI in their portfolios at the end of March. (See Randall Smith’s top holdings here).

2. Conoco Phillips (NYSE:COP): ConocoPhillips is an integrated energy company operating worldwide. COP recently traded at $68.08, and has a 3.95% dividend yield. COP gained 20.21% during the past 12 months. The stock has a market cap of $94.6 billion and P/E ratio of 8.4. Buffett had $2.3 billion invested in COP shares. Fourteen hedge funds had COP among their top 10 holdings. Hedge funds collectively own 1% of COP’s outstanding shares. First Eagle and D.E. Shaw had large holdings in COP at the end of March.

3. Torchmark Corp. (NYSE:TMK): Torchmark Corporation provides individual life and supplemental health insurance products. TMK recently traded at $36.83 and has a 1.18% dividend yield. TMK gained 5.63% during the past 12 months. The stock has a market cap of $4.2 billion and P/E ratio of 8.9. Buffett had $188 million invested in TMK shares.

4. Exxon Mobil Corp. (NYSE:XOM): Exxon Mobil Corporation is an integrated energy company. XOM recently traded at $75.53, and has a 2.55% dividend yield. XOM gained 20.65% during the past 12 months. The stock has a market cap of $363.7 billion and P/E ratio of 9.7. Buffett had $35 million invested in XOM shares. XOM is one of the 11 energy companies hedge funds are buying like crazy (See entire list here). Sixteen hedge funds had XOM among their top 10 holdings. Hedge funds collectively own 1% of XOM’s outstanding shares. Phill Gross’ Adage and Ken Fisher were among the fund managers who are bullish about XOM.

5. Wells Fargo & Co. Del (NYSE:WFC): Wells Fargo & Company various banking services primarily in the United States. WFC recently traded at $25.53 and has a 1.86% dividend yield. WFC lost 6.57% during the past 12 months. The stock has a market cap of $136.1 billion and P/E ratio of 10. Buffett had $10.9 billion invested in WFC shares.

6. Bank of New York Mellon Corp. (NYSE:BK): Bank of New York Mellon is a financial services company operating worldwide. BK recently traded at $23.04 and has a 2.19% dividend yield. BK lost 6.94% during the past 12 months. The stock has a market cap of $29.5 billion and P/E ratio of 11. Buffett had $54 million invested in BK shares. John Paulson also had $650 million invested in Wells Fargo (See John Paulson’s top stock picks here).

7. M & T Bank Corporation (NYSE:MTB): M&T Bank Corporation provides commercial and retail banking services. MTB recently traded at $78.91 and has a 3.45% dividend yield. MTB lost 4.4% during the past 12 months. The stock has a market cap of $10.2 billion and P/E ratio of 11.5. Buffett had $475 million invested in MTB shares.

8. US Bancorp (NYSE:USB): U.S. Bancorp provides various banking and financial services in the United States. USB recently traded at $23.81 and has a 2.07% dividend yield. USB gained 3.43% during the past 12 months. The stock has a market cap of $46.5 billion and P/E ratio of 11.6. Buffett had $1.8 billion invested in USB shares.

9. Wal-Mart Stores, Inc. (NYSE:WMT): Wal-Mart Stores operates retail stores worldwide. WMT recently traded at $50.55 and has a 2.91% dividend yield. WMT lost 0.5% during the past 12 months. The stock has a market cap of $174 billion and P/E ratio of 11.7. Buffett had $2.03 billion invested in WMT shares.

10. Washington Post Co. (WPO): Washington Post is a diversified education and media company operating worldwide. WPO recently traded at $392.82 and has a 2.55% dividend yield. WPO lost 7.82% during the past 12 months. The stock has a market cap of $2.9 billion and P/E ratio of 12.1. Buffett had $756 million invested in WPO shares.

Disclosure: I am long COP.