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 11 Warren Buffett stocks that are relatively cheap because they have P/E ratio of below 15 and negative 52-week returns. (Market data is sourced from Finviz)
1. Sanofi Aventis (NYSE:SNY): Sanofi is a global and diversified healthcare company. SNY recently traded at $31.9 and has a 5.71% dividend yield. SNY lost 1.69% during the past 12 months. The stock has a market cap of $86.1 billion and P/E ratio of 14.18. Buffett had $163 million invested in SNY shares. Ken Fisher also invested nearly $600 million in SNY (check out Fisher’s top stock picks).
2. M & T Bank Corporation (NYSE:MTB): M&T Bank Corporation provides commercial and retail banking services. MTB recently traded at $69.01 and has a 4.06% dividend yield. MTB lost 21.19% during the past 12 months. The stock has a market cap of $8.7 billion and P/E ratio of 9.75. Buffett had $472 million invested in MTB shares.
3. General Electric Co. (NYSE:GE): General Electric provides technology, media, and financial services worldwide. GE recently traded at $15.21 and has a 3.94% dividend yield. GE lost 2.62% during the past 12 months. The stock has a market cap of $161.2 billion and P/E ratio of 11.79. Buffett had $147 million invested in GE shares. Ken Fisher’ Fisher Asset Management, Phill Gross’ Adage Capital Management, Bill Miller’s Legg Mason Capital Management and D.E. Shaw had at least $100 million in GE at the end of June.
4. United Parcel Service Inc. (NYSE:UPS): UPS is a package delivery company. UPS recently traded at $62 and has a 3.35% dividend yield. UPS lost 5.14% during the past 12 months. The stock has a market cap of $60.8 billion and P/E ratio of 15.31. Buffett had $104 million invested in UPS shares. Jim Cramer holds 600 shares of UPS stocks. Jason Capello also invested $253 million in UPS.
5. Gannett Inc. (NYSE:GCI): Gannett is a media and marketing solutions company operating worldwide. GCI recently traded at $9.09 and has a 3.52% dividend yield. GCI lost 23.55% during the past 12 months. The stock has a market cap of $2.2 billion and P/E ratio of 4.27. Buffett had $25 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 June.
6. Wal-Mart Stores, Inc. (NYSE:WMT): Wal-Mart operates retail stores worldwide. WMT recently traded at $50.8 and has a 2.87% dividend yield. WMT lost 3.57% during the past 12 months. The stock has a market cap of $175.1 billion and P/E ratio of 11.49. Buffett had $2.1 billion invested in WMT shares. Wal-Mart is also a favorite of Eagle Capital.
7. Washington Post Co. (WPO): Washington Post is a diversified education and media company operating worldwide. WPO recently traded at $325.92 and has a 2.88% dividend yield. WPO lost 12.27% during the past 12 months. The stock has a market cap of $2.6 billion and P/E ratio of 12.31. Buffett had $724 million invested in WPO shares. Mason Hawkins’ Southeastern Asset Management also had $153 million invested in WPO shares. Hawkins reduced his WPO holdings by 6% during the second quarter.
8. Bank of New York Mellon Corp. (NYSE:BK): BK recently traded at $18.52 and has a 2.81% dividend yield. BK lost 27.97% during the past 12 months. The stock has a market cap of $22.8 billion and P/E ratio of 8.57. Buffett had $46 million invested in BK shares.
9. Wells Fargo & Co. Del (NYSE:WFC): Wells Fargo, a diversified financial services company, provides banking, insurance, investments, mortgage banking, investment banking, retail banking, brokerage, and consumer finance. WFC recently traded at $23.69 and has a 2.03% dividend yield. WFC lost 6.33% during the past 12 months. The stock has a market cap of $125.1 billion and P/E ratio of 9.18. Buffett had $9.9 billion invested in WFC shares. Whitney Tilson made a lot of money on Wells Fargo during the financial crisis by shorting the stock, but he thinks it is the best banking franchise by far among large US banks and expects its stock to go back and reestablish a position. John Paulson also had $943 million invested in Wells Fargo. Paulson increased his WFC holdings by 64% during the second quarter (see John Paulson’s top stock picks).
10. Ingersoll-Rd Company LTD. (NYSE:IR): Ingersoll-Rand Plc provides various industrial and commercial products worldwide. IR recently traded at $31 and has a 1.55% dividend yield. IR lost 10.25% during the past 12 months. The stock has a market cap of $10.3 billion and P/E ratio of 11.74. Buffett had $29 million invested in IR shares. Phill Gross’ Adage Capital Management holds the largest position in IR among the 300+ hedge funds we are tracking. Gross increased his holdings in this company by 1525% during the second quarter and held $233 million worth of the company shares at the end of June.
11. Torchmark Corp. (NYSE:TMK): Torchmark Corporation provides individual life and supplemental health insurance products. TMK recently traded at $34.31 and has a 1.4% dividend yield. TMK lost 4.35% during the past 12 months. The stock has a market cap of $3.6 billion and P/E ratio of 7.51. Buffett had $181 million invested in TMK shares. Jim Simons’ Renaissance Technologies initiated $30 million position in TMK during the second quarter.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.