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Warren Buffett's 7 Second Quarter Increases
Posted by: Monica Wolfe (IP Logged)
Date: August 15, 2013 01:57PM

Berkshire Hathaway (BRK.A)(BRK.B) finally released their second quarter portfolio this morning which highlighted two new companies for the world-renowned fund.

Warren Buffett’s second quarter portfolio reports 42 stocks valued at $89.031 billion.


[size=13px; ]The following seven stocks are the companies that Buffett increased Berkshire Hathaway’s position in during the second quarter. [/size]

General Motors (GM)

Warren Buffett made his largest stock increase of the quarter in General Motors. The guru upped his stake 60% by purchasing a total of 15 million shares. Buffett bought these shares in the second quarter price range of $27.52 to $35.03, with an estimated average price of $31.68. The price per share is up 12.3% from this price.

Buffett now holds on to 40 million shares of GM, representing 2.93% of the company’s shares outstanding and 1.5% of Berkshire Hathaway’s total portfolio.

Buffett’s holding history as of the close of the second quarter:



The Company develops, produces and markets cars, trucks and parts worldwide. It does so through its three segments: General Motors North America, General Motors Europe and General Motors International Operations.

GM’s historical revenue and earnings growth:



The Peter Lynch Chart suggests that General Motors is currently undervalued:



General Motors has a market cap of $47.89 billion. Its shares are currently trading at around $34.60 with a P/E ratio of 9.90, a P/S ratio of 0.40 and a P/B ratio of 1.80.

Chicago Bridge & Iron Company (CBI)

During the second quarter Buffet increased his position in Chicago Bridge & Iron by 46.74%. The guru purchased a total of 3,042,155 shares in the price range of $50.92 to $63.74, with an estimated average price of $58.09.

Buffett now holds 9,550,755 shares of Chicago Bridge & Iron Company, representing 9.03% of the company’s shares outstanding and 0.64% of Berkshire Hathaway’s total portfolio.

Buffett’s holding history as of the second quarter:



The company provides conceptual design, technology, engineering, procurement, fabrication and construction, commissioning and associated maintenance services to customers in the energy and natural resource industries.

Chicago Bridge & Iron’s historical revenue and net income:



The Peter Lynch Chart shows that the company appears to be overvalued:



Chicago Bridge & Iron Company has a market cap of $6.41 billion. Its shares are currently trading at around $59.67 with a P/E ratio of 19.70, a P/S ratio of 0.80 and a P/B ratio of 3.80. The company had an annual average earnings growth of 20.7% over the past ten years.

VeriSign (VRSN)

During the second quarter Buffett upped his position in VeriSign 33.32% by purchasing 2,723,320 shares. The guru bought these shares in the second quarter price range of $43.59 to $49.27, with an estimated average price of $46.33.

Berkshire Hathaway now holds $10,897,420 shares of VeriSign, representing 7.14% of the company’s shares outstanding and 0.55% of the fund’s total portfolio weighting.

Buffett’s holding history of VeriSign as of the second quarter:



The company provides network confidence and availability for mission-critical Internet services, such as domain name registry services and infrastructure assurance services.

VeriSign’s historical revenue and net income:



The Peter Lynch Chart suggests that the company is currently overvalued:



VeriSign has a market cap of $7.02 billion. Its shares are currently trading at around $48.90 with a P/E ratio of 22.70 with a P/E ratio of 22.70 and a P/S ratio of 8.50. The company had an annual average earnings growth of 13.3% over the past ten years.

Bank of New York Mellon Corp (BK)

Over the duration of the second quarter Buffett increased his position in Bank of New York Mellon Corp by 30.12%. The legendary guru purchased a total of 5,704,914 shares which were trading in the price range of $26.70 to $30.55, with an estimated average price of $28.72. The price per share has increased approximately 5.7% since then.

Buffett holds 24,644,029 shares of BK, representing 2.12% of the company’s shares outstanding and 0.78% of his total portfolio.

Buffett’s holding history as of June 30:



The company is a global financial services company. Bank of New York Mellon provides a comprehensive array of services that enable institutions and individuals to manage and service their financial assets in more than 100 markets worldwide.

BK’s historical revenue and net income:



The Peter Lynch Chart suggests that the company is overvalued:



Bank of New York Mellon has a market cap of $34.76 billion. Its shares are currently trading at around $30.21 with a P/E ratio of 18.40, a P/S ratio of 2.40 and a P/B ratio of 1.10.

U.S. Bancorp (USB)

Also over the second quarter Buffet increased his position in U.S. Bancorp 27.37% by purchasing a total of 16,819,200 shares. The guru bought these shares in the second quarter price range of $32.27 to $36.15, with an estimated average price of $34.31. The price per share has increased 7.3% since then.

Buffett now holds 78,227,301 shares of U.S. Bancorp, representing 4.20% of the company’s shares outstanding and 3.2% of Berkshire Hathaway’s total portfolio.

Buffett’s holding history as of the second quarter:



U.S. Bancorp provides a full range of financial services, including lending and depository services, cash management, foreign exchange and trust and investment management services.

U.S. Bancorp’s historical revenue and net income:



The Peter Lynch Chart suggests that the company is currently undervalued:



U.S. Bancorp has a market cap of $67.52 billion. Its shares are currently trading at around $36.71 with a P/E ratio of 12.50, a P/S ratio of 3.50 and a P/B ratio of 2.00. The company had an annual average earnings growth of 19.6% over the past five years.

National Oilwell Varco Inc. (NOV)

During the second quarter Buffet increased his holdings in National Oilwell Varco by 18.65%. The guru purchased a total of $1,395,700 shares in the price range of $64.14 to $71.57, with an estimated average price of $68.35. The share price is up about 7.3% since then.

Buffett now owns 8.88 million shares of National Oilwell, representing 2.08% of the company’s shares outstanding and 0.69% of his total portfolio.

Buffett’s holding history as of the second quarter:



National Oilwell Varco is a provider of equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry.

NOV’s historical revenue and earnings growth:



The Peter Lynch Chart shows that company currently appears to be undervalued:



National Oilwell Varco has a market cap of $31.38 billion. Its shares are currently trading at around $73.41 with a P/E ratio of 13.60, a P/S ratio of 1.40 and a P/B ratio of 1.50. The company had an annual average earnings growth of 28.4% over the past ten years.

GuruFocus rated National Oilwell the business predictability rank of 2.5-star.

Wells Fargo & Co (WFC)

Buffett made his smallest increase of the quarter into his largest holding. Buffett increased his position in Wells Fargo 1.08% by adding a total of 4,961,300 shares. He bought these shares in the second quarter price range of $36.27 to $41.56, with an estimated average price of $38.97. The price per share has increased about 9.9% since then.

The guru now holds on to a total of 463,131,623 shares of Wells Fargo, representing 8.79% of the company’s shares outstanding and 21.5% of his total portfolio.

Buffett’s holding history of WFC as of the close of the second quarter:



Wells Fargo is a nationwide, diversified, community-based financial services company with $1.4 trillion in assets. The company provides banking, insurance, investments, mortgage and consumer and commercial finance throughout 35 countries.

Wells Fargo’s historical revenue and net income:



The Peter Lynch Chart suggests that the company is currently undervalued:



Wells Fargo has a market cap of $227.79 billion. Its shares are currently trading at around $42.9 with a P/E ratio of 11.60, a P/S ratio of 2.70 and a P/B ratio of 1.60. The company had an annual average earnings growth of 1.6% over the past ten years.

Check out Warren Buffett and Berkshire Hathaway’s second quarter portfolio here.

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Guru Discussed: Warren Buffett: Current Portfolio, Stock Picks
Stocks Discussed: GM, CBI, VRSN, BK, USB, NOV, WFC, BRK.A, BRK.B,
Rate this post:

Rating: 3.8/5 (5 votes)



Re Warren Buffett s 7 Second Quarter Increases
Posted by: vgm (IP Logged)
Date: August 15, 2013 02:47PM

Here's the standard quarterly correction: most of these stocks were bought by Ted Weschler and/or Todd Combs, NOT Buffett.

Buffett has remarked in the past that he doesn't even know what Todd and Ted are buying until well after the event.

Easiest is to say that they were bought by Berkshire.



Guru Discussed: Warren Buffett: Current Portfolio, Stock Picks
Stocks Discussed: GM, CBI, VRSN, BK, USB, NOV, WFC, BRK.A, BRK.B,
Rate this post:

Rating: 0.0/5 (0 votes)





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