Want to invest in Warren Buffett's style? These 9 stocks of India can make investors rich - know the details!

New Delhi, If you are inspired by Warren Buffett's success in the world of investment and want to invest in his style, then there are some companies in the Indian stock market, which can prove to be a gold mine for you. Buffett, known as the 'Oracle of Omaha', is famous for his value investing strategy. Recently, a custom screening by MarketSmith has identified 9 such stocks in India, which are in line with Buffett's investment philosophy (Buffettology). These stocks can make investors rich in the long term. Let's take a detailed look at these stocks and their features.

What is Warren Buffett's investment philosophy?

Warren Buffett, a student of Benjamin Graham and chairman of Berkshire Hathaway, believes that investors should invest in companies that have strong business models, stable earnings, and long-term growth potential. Buffett's strategy includes factors such as low debt-to-equity ratio of companies, high return on equity (ROE), and strong balance sheets. He prefers to invest in companies that have a competitive advantage in the market and are available at a reasonable price.

In recent times, investors have their eyes on Warren Buffett's strategy amid the growing economy and stock market boom in India. Talking about trending topics, #WarrenBuffettStyle and #IndianStocks are in discussion on social media, where investors are discussing ways to adopt Buffett's strategy.

9 Indian Stocks That Match Buffett's Style

Based on MarketSmith's recent screening, here are 9 Indian stocks that align with Warren Buffett's investing style. These companies have strong financial performance, low debt, and long-term growth potential:

1. Godfrey Phillips India: With an operating revenue of Rs 5,111.46 crore (trailing 12 months), the company has an annual revenue growth of 24%, pre-tax margin of 21%, and ROE of 20%. It is debt-free and reports stable earnings with a strong balance sheet. From a technical standpoint, the stock is trading 19% above its 50DMA and 200DMA.
2. Kansai Nerolac Paints: With an operating revenue of Rs 7,776 crore, it has an annual revenue growth of 4%, pre-tax margin of 20%, and ROE of 21%. It is debt-free but technically trading below its 200DMA.
3. Abbott India: With operating revenue of Rs 6,243 crore, the company has an annual revenue growth of 11%, pre-tax margin of 28%, and ROE of 32%. It is debt-free and is trading close to its moving average.
4. Cipla: With operating revenue of Rs 26,981 crore, it has an annual revenue growth of 14%, pre-tax margin of 22%, and ROE of 15%. The company is debt-free and has long-term growth potential.
5. HG Infra Engineering: With revenue of Rs 4,151.26 crore, it has an annual growth of 44%, pre-tax margin of 14%, and ROE of 26%. However, its debt-to-equity is 67%, which is slightly high.
6. Mallcom: With a revenue of Rs 410.55 crore, it has a ROE of 21% and a pre-tax margin of 15%. It is debt-free and is technically strong.
7. Nippon Life India Asset Management: With a revenue of Rs 1,349.8 crore, it has a pre-tax margin of 76% and a ROE of 21%, which is exceptional. However, it is trading below its 200DMA.
8. Tube Investment of India: With a revenue of Rs 15,032 crore, it has a yearly growth of 16%, a pre-tax margin of 12%, and a ROE of 20%. It is debt-free and is technically strong.
9. Sharda Motor Industries: With a revenue of Rs 2,700 crore, it has an annual growth rate of 20%, pre-tax margin of 10%, and ROE of 27%. It is debt-free and shows stable growth over the long term.

Why are these stocks special?

The specialty of these stocks is that all these companies meet Buffett's criteria - high ROE, strong margins, low or no debt, and long-term growth potential. Technical analysis shows that most stocks are trading above their moving averages, which shows potential for them to grow further. However, before investing, investors should also take into account the company's management, market conditions, and global economic trends.

Advice for investors

Warren Buffett's strategy is based on long-term investing. He says, "If you can't hold a stock for 10 years, don't hold it for 10 minutes." So, consult experts and understand your risk before investing in these stocks. In recent times, one of the trending topics on social media is #Buffettology, where investors are discussing these stocks and debating their prospects.

Conclusion

These 9 stocks can be a great choice for Warren Buffett style investing in India. The strong financials and long-term growth potential of these companies make them attractive. But thorough research and advice from a financial advisor is a must before investing. If you pick the right stock at the right time, these stocks can make you rich!