Everyone knows that Warren Buffett is one of the best investors in the world.
The Oracle of Omaha, as he is called, is not only intelligent, but he also has the patience and tenacity to sift out quality companies.
He has a list of criteria for the stocks that he holds for the long term within his portfolio.
These companies should have a strong competitive moat, pay healthy dividends, and generate good free cash flow.
If Buffett were to invest in the Singapore stock market, here are three Singapore stocks that he could consider purchasing.
VICOM (SGX: WJP)
VICOM is a leading provider of inspection and technical testing services.
The group not only inspects vehicles but also conducts a comprehensive range of inspection and testing services in fields such as mechanical, biochemical, civil engineering, and non-destructive testing.
VICOM is also a subsidiary of ComfortDelGro Corporation (SGX: C52), a land transport operator.
For 2024, the group inspected a total of 525,108 vehicles, giving it a close-to-73% market share of the vehicular inspection market.
This dominant market share should make it attractive in the eyes of the Oracle of Omaha, as this means VICOM has limited competition in this area.
The group released an encouraging set of earnings for the first quarter of 2025 (1Q 2025).
Revenue jumped nearly 19% year on year to S$33.3 million while operating profit increased by 8.7% year on year to S$9 million.
Net profit improved by 7.5% year on year to S$7.5 million.
The business also generated a positive free cash flow of S$4.5 million for the quarter.
VICOM is continuing with the installation of the on-board unit (OBU) for Electronic Road Pricing 2.0 and has, during the quarter, installed more than 53,000 OBUs.
However, management warned that trade tensions, along with Trump’s tariffs, could dampen the growth of Singapore’s economy and negatively impact its non-vehicle testing segment.
DBS Group (SGX: D05)
DBS is the largest of the three local banks by market capitalisation and is one of the key pillars of Singapore’s economy.
Buffett has investments in several US banks, and he should look upon DBS favourably as Singapore’s largest bank reported impressive financials and metrics.
For 2024, the lender’s net profit hit a record of S$11.4 billion, up 11% year on year.
Its return on equity (ROE) was also an impressive 18%, maintained from the previous year.
Fast forward to 1Q 2025, and profit before tax also came in at a record S$3.4 billion as total income grew 6% year on year to a new high of S$5.9 billion.
ROE came in at 17.3%.
The lender also drew in record fee income from wealth management and credit card fees.
To manage its excess capital, DBS declared an ordinary interim dividend of S$0.60 and a capital return dividend of S$0.15, taking its total 1Q 2025 dividend to S$0.75.
This dividend is nearly 39% higher than the S$0.54 paid out a year ago.
The bank has strengthened its balance sheet allowances in light of potential trade disruptions amid higher tariffs.
However, CEO Tan Su Shan sees opportunities in new growth corridors and sectors.
Continued wealth inflows should also maintain DBS’s fee income, while loans may grow faster should interest rates fall.
Raffles Medical Group (SGX: BSL)
Raffles Medical Group, or RMG, is an integrated healthcare player with a network of four hospitals and more than 100 multi-disciplinary clinics.
The group offers a comprehensive range of healthcare and medical services, including health screening, specialist care, dental, and TCM.
Buffett will likely favour RMG’s multi-disciplinary approach, its strong brand, and its long track record of healthy financial performance.
For 2024, the group reported a mixed set of earnings as revenue from COVID-19 diagnostics and procedures tailed off.
Revenue rose 6.3% year on year to S$751.6 million, but operating profit declined 28.7% year on year to S$82.5 million.
Net profit fell by 31% year on year to S$62.2 million.
The integrated healthcare player declared a final dividend of S$0.025.
Management also intends to buy back up to 100 million ordinary shares in the next two years as a way of enhancing its earnings per share.
RMG announced several initiatives and collaborations in China over the past few months.
In April, the group signed a collaboration agreement with Renji Hospital in Shanghai to advance a new model of collaborative development between public hospitals and international medical groups.
Just last month, RMG and the First Affiliated Hospital of Chongqing Municipality signed a cooperation agreement to integrate international expertise with local strengths to enhance the overall medical service capabilities of Chongqing.
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Disclosure: Royston Yang owns shares of VICOM, Raffles Medical Group and DBS Group.
