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Top 10 Stocks Warren Buffett Would Buy in 2026
Insider Monkey· 2026-02-28 17:14
Core Viewpoint - The article discusses the top 10 stocks that Warren Buffett would consider buying in 2026, emphasizing his investment philosophy focused on quality and long-term value [1][2][3]. Investment Philosophy - Warren Buffett prioritizes the quality of stocks over quick profits, advocating for investments in companies with steady profitability and strong financial health [2]. - His famous quote highlights the preference for buying "a wonderful company at a fair price" rather than "a fair company at a wonderful price" [2]. Methodology - The selection of the top 10 stocks was based on a Buffett-style framework that includes criteria such as Return on Equity (ROE) above 15%, Debt-to-Equity below 1, and EPS growth of at least 8%–10% over the past five years [5]. - The final selection was narrowed down to stocks with significant hedge fund interest and recent noteworthy developments that could influence investor sentiment [6]. Hedge Fund Interest - The article notes that stocks favored by hedge funds tend to outperform the market, with a strategy that has yielded a return of 427.7% since May 2014, significantly beating its benchmark [7]. Company Spotlight: East West Bancorp, Inc. - East West Bancorp, Inc. (NASDAQ:EWBC) is highlighted as one of the top 10 stocks, with 37 hedge fund holders [8]. - Recent insider activity includes significant stock sales by top executives, with the CEO selling 50,000 shares for $5,890,752, resulting in a -6% change in ownership value [8][9]. - The company reported record-high revenue of $2.9 billion for Q4 and full-year 2025, marking a 12% year-over-year increase, and net income of $1.3 billion, or $9.52 per diluted share, reflecting a 14% year-over-year increase [10]. - A quarterly dividend of $0.80 per share was announced, representing a 33% increase [10]. - Founded in 1973, East West Bancorp provides commercial and consumer banking services globally, headquartered in California [11].