Billionaire Birdsong: Warren Buffett's Lowest PE Stocks

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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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About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Stocks

Referenced Stocks: DE , LMCA , PSX

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