Warren Buffett's 'Forever Stocks' 2023: Sumitomo Leads With Lowest P/E, Highest Yield
Warren Buffett, the renowned investor, has revealed his 'forever stocks' for 2023, a list of companies he believes are exceptional long-term investments. Among them, Sumitomo stands out with the lowest forward P/E ratio and the highest dividend yield in the stock market.
Buffett, known for his 'buy and hold' strategy, favours businesses with outstanding management and prospects. He added five Japanese trading houses, including Sumitomo, to his 'forever' list this year, appreciating their diversified business models. Sumitomo's forward P/E ratio of 8.98 is the lowest among these companies, indicating a potentially undervalued stock in the stock market. Additionally, Sumitomo offers the highest dividend yield of 3.33%, closely followed by Coca-Cola and Mitsubishi. Coca-Cola, a 'Dividend King' with 63 consecutive years of dividend increases, typically offers one of the highest dividend yields in Buffett's portfolio in the stock market. Apple, Berkshire's largest holding, though not on the 2023 list, was praised by Buffett as a better business than Coca-Cola in 2024, reflecting its strong long-term performance in the stock market.
Buffett's top 'forever stock' pick for 2023 is Occidental Petroleum, commended for its oil and gas holdings and carbon capture initiatives. American Express and Coca-Cola are Buffett's longest-held stocks in the Berkshire portfolio, demonstrating his commitment to these companies in the stock market. The total investment in these nine 'forever stocks' amounts to approximately $138 billion.
Sumitomo, with its low forward P/E ratio and high dividend yield, joins other exceptional companies in Warren Buffett's 'forever stocks' list for 2023. These investments reflect Buffett's confidence in their long-term prospects and commitment to a 'buy and hold' strategy in the stock market.
