Could British Investors Profit From The Procter & Gamble Company (PG)?

And there’s no denying the sales and profit potential of Procter & Gamble’s powerful stable of brands, if only the marketing and organizational snafus can be sorted out. Put another way, the analogy that comes to mind is one of a supertanker heading through choppy waters, rather than one heading for the rocks.

Changing hands today at $78, Procter & Gamble’s shares are rated on a forecast P/E of 19.9 and offer a historic yield of 2.9%. While neither figure is particularly compelling on its own, each is certainly at a discount to the sector average. And Procter & Gamble, don’t forget, is pretty much the top dog of the sector in question.

Is the company a buy? Certainly one for the watchlist, I’d argue. I like the sector — and hold both Unilever and Reckitt Benckiser — so Procter & Gamble isn’t without its charms. Especially for an income investor looking for dependable dividends. Buy on weakness would be my call.

Follow the money
One investor who certainly buys on weakness is Warren Buffett, whose Berkshire Hathaway Inc. (NYSE:BRK.A) investment vehicle has delivered returns of over 20% per year since 1965 and turned Buffett himself into the world’s third-wealthiest person.

As it happens, Buffett recently took advantage of weak results and a dip in the share price to top up his holding in one particular FTSE 100 share — an unusual move for an investor who rarely ventures outside the U.S. As a result, he now owns over 5% of this company, which he first began buying back in 2006.

Its name? Simply download this free special report from The Motley Fool — “The One U.K. Share Warren Buffett Loves” — to find out. Inside, you’ll discover just why Buffett has invested over 1 billion pounds in this business and why you could consider taking a stake, too.

The article Could British Investors Profit From Procter & Gamble? originally appeared on Fool.com and is written by Malcolm Wheatley.

Malcolm Wheatley owns shares in Unilever and Reckitt Benckiser, but does not have an interest in any other shares named. The Motley Fool recommends Berkshire Hathaway, Procter & Gamble, Reckitt Benckiser, and Unilever. The Motley Fool owns shares of Berkshire Hathaway.

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