Warren Buffett is well known for his consistent success in the perilous world of investments. The billionaire has long been known as a “value investor”. However, a “value” investment can be determined through one of any number of ways. Some examples of ways to determine value include “price-to-book” or “price-to-earnings” valuations. Essentially, the oracle of Omaha prefers to invest in companies with strong fundamental values that can keep a company going for the long term. Mr. Buffett’s procedure is in contrast with “growth investors,” who invest in companies that show signs of above-average growth, regardless of any other “value” metrics.
With all that in mind, Wells Fargo has put together a list of the 12 stocks that they believe Warren Buffett is most likely to be looking into.
- Company: Altria
Ticker: MO
Industry: Tobacco
Five-year Average ROE: 139.8% - Company: Cboe Global Markets
Ticker: CBOE
Industry: Financial Exchganges
Five-year Average ROE: 61.3% - Company: CNX Midstream Partners
Ticker: CNXM
Industry: Oil & Gas
Five-year Average ROE: 22% - Company: Cognizant Technology Solutions
Ticker: CTSH
Industry: Technology
Five-year Average ROE: 18.4% - Company: Micron Technology
Ticker: MU
Industry: Semiconductors
Five-year Average ROE: 28.4% - Company: Tapestry
Ticker: TPR
Industry: Luxury retail
Five-year Average ROE: 20% - Company: Capri Holdings
Ticker: CPRI
Industry: Apparel
Five-year Average ROE: 38.6% - Company: Cummins
Ticker: CMI
Industry: Diversified industrial
Five-year Average ROE: 19% - Company: EQM Midstream Partners
Ticker: EQM
Industry: Oil & Gas
Five-year Average ROE: 29.4% - Company: Regeneron Pharmaceuticals
Ticker: REGN
Industry: Pharmaceuticals
Five-year Average ROE: 21.5% - Company: Urban Outfitters
Ticker: URBN
Industry: Apparel
Five-year Average ROE: 15.6% - Company: Bed Bath & Beyond
Ticker: BBBY
Industry: Specialty retail
Five-year Average ROE: 25.4%
