Warren Buffett May Be Setting His Sights on These 5 Tech Stocks

The following companies have attributes that are considered important to the Oracle of Omaha

SmallCapPower | May 20, 2016: When Warren Buffett makes an investment decision Wall Street takes notice. Recently, it was revealed that the world’s most famous investor had taken a billion-dollar stake in Apple Inc. (NASDAQ: AAPL). It was a curious move, seeing that the Oracle of Omaha has largely avoided technology stocks. Given his latest purchase, we have identified five tech names with high gross margins, stable returns on equity (ROE), as well as relatively high free cash flow per share yields, qualities that are prized by Mr. Buffett.

Intuit Inc. (NASDAQ:INTU) – $102.70
Technology

Intuit Inc. is a provider of business and financial management solutions for small businesses, consumers and accounting professionals. The Company operates through three segments: Small Business, Consumer Tax and Professional Tax.

• Market Cap: $26,375,539,705
• ROE (TTM): 37.5%
• Gross Margin: 83%
• Free Cash Flow per Share Yield: 3.6%

Linear Technology Corp. (NASDAQ:LLTC) – $44.86
Technology

Linear Technology Corporation is engaged in designing, manufacturing and marketing a line of analog integrated circuits for companies across the world. The Company’s principal product categories include Amplifiers, High Speed Amplifiers, Voltage Regulators, Voltage References, Interface, Data Converters, Battery Stack Monitors, Silicon Oscillators and Timer Blox, Phase Locked Loop (PLL) Synthesizers and Clock Distribution, SmartMesh Embedded Wireless Sensor Network, Isolated uModule Transceivers, Radio Frequency Circuits, Power Over Ethernet (PoE) Controllers, uModule Power Products, Signal Chain uModule Products and Others.

• Market Cap: $10,725,944,983
• ROE (TTM): 31.0%
• Gross Margin: 76%
• Free Cash Flow per Share Yield: 5.5%

Alibaba Group Holding Ltd. (NYSE:BABA) – $79.03
Technology

Alibaba Group Holding Limited is a holding company, principally engaged in online and mobile commerce through products, services and technology. The Company provides retail and wholesale marketplaces available through both personal computer and mobile interfaces in the PRC and internationally. Retail marketplaces and services operated by the Company include the China online shopping destination (Taobao Marketplace); the China brands and retail platform (Tmall); the China group buying site that offers products by aggregating demand from consumers through limited time discounted sales (Juhuasuan), and the global consumer marketplace targeting consumers around the world (AliExpress).

• Market Cap: $198,557,145,641
• ROE (TTM): 39.4%
• Gross Margin: 66%
• Free Cash Flow per Share Yield: 4.1%

Texas Instruments Inc. (NASDAQ:TXN) – $58.01
Technology

Texas Instruments Incorporated designs, makes and sells semiconductors to electronics designers and manufacturers across the world. The Company operates through two segments: Analog and Embedded Processing. It also offers baseband products, and OMAP applications processors and connectivity products, which are sold into smartphones and consumer tablets.

• Market Cap: $58,255,203,107
• ROE (TTM): 29.3%
• Gross Margin: 58%
• Free Cash Flow per Share Yield: 5.8%

NXP Semiconductors NV (NASDAQ:NXPI) – $87.03
Technology

NXP Semiconductors N.V. (NXP) is a holding company that operates as a semiconductor company and a long-standing supplier. The Company provides high performance mixed signal and standard product solutions. Its segments include High Performance Mixed Signal (HPMS), Standard Products (SP), and Corporate and Other. Its product solutions are used in a range of end-market applications, including automotive, and personal security and identification.

• Market Cap: $30,112,629,080
• ROE (TTM): 21.2%
• Gross Margin: 46%
• Free Cash Flow per Share Yield: 7.5%

DISCLAIMER
The Content contained on this page (including any facts, views, opinions, recommendations, description of, or references to, products or securities) made available by SmallCapPower/Ubika Research is for information purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated there with and is not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by SmallCapPower/Ubika Research. The Reader should apply his/her own judgment in making any use of any Content, including, without limitation, the use of any information contained therein as the basis for any conclusions. The Reader bears responsibility for his/her own investment research and decisions. Before making any investment decision, it is strongly recommended that you seek outside advice from a qualified investment advisor. SmallCapPower/Ubika Research does not provide or guarantee any financial, legal, tax, or accounting advice or advice regarding the suitability, profitability, or potential value of any particular investment, security, or information source.