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A Summary of Warren Buffett's Latest Portfolio Changes and the Best Yielding Stocks
Posted by: Dividend (IP Logged)
Date: August 20, 2013 10:23AM

Everybody loves Warren Buffett and when he releases his portfolio statements, all investors jump on this paper and try to figure out what he is doing. In this article I will summarize the latest stock buys and sells of Buffett's latest portfolio overview.

Within the recent quarter, Buffett made only 13 trades of which nine come from the long side. He bought two new companies and increased seven additional stock holdings in his portfolio. The new stocks were Dish Network and Suncor Energy.

The only stake he sold completely was the newspaper publisher Gannett. Kraft Foods, Moody’s and Mondelez were reduced within the recent quarter.

In total, Buffett did not change much. The stock with the highest influence to his portfolio pocket change was the bank U.S. Bancorp. The Oracle of Omaha increased the position by 27.37 percent which resulted in an portfolio impact of 0.69 percent.

You can find a full list of his latest transactions below. Ten of his 13 latest stock moves pay dividends and the yields are between 0.33 and 3.84.

Back to Warren’s biggest portfolio positions. Warren concentrates most of his wealth on four assets: Wells Fargo, Coca Cola, IBM and American Express. These fantastic four represent around 67 percent of his full portfolio value. On the attached list, you can see more details about his 20 biggest stock positions. Financial Services, Consumer defensive stocks and technology are the biggest sector in which Warren Buffett loves to invest.

Here are the best yielding stock moves from Buffett:

Kraft Foods (KRFT)
has a market capitalization of $31.03 billion. The company employs 23,000 people, generates revenue of $18.339 billion and has a net income of $1.642 billion. Kraft Foods’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.401 billion. The EBITDA margin is 18.55 percent (the operating margin is 14.56 percent and the net profit margin 8.95 percent).

Financial Analysis: The total debt represents 42.74 percent of Kraft Foods’s assets and the total debt in relation to the equity amounts to 279.14 percent. Due to the financial situation, a return on equity of 16.24 percent was realized by Kraft Foods. Twelve trailing months earnings per share reached a value of $3.10. Last fiscal year, Kraft Foods paid $0.50 in the form of dividends to shareholders. Warren Buffett reduced the KRFT stake by 87.97 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.82, the P/S ratio is 1.69 and the P/B ratio is finally 8.65. The dividend yield amounts to 3.84 percent and the beta ratio is not calculable.

Gannett (GCI) has a market capitalization of $5.51 billion. The company employs 30,700 people, generates revenue of $5.353 billion and has a net income of $475.01 million. Gannett’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.105 billion. The EBITDA margin is 20.66 percent (the operating margin is 14.75 percent and the net profit margin 8.87 percent).

Financial Analysis: The total debt represents 22.45 percent of Gannett’s assets and the total debt in relation to the equity amounts to 60.92 percent. Due to the financial situation, a return on equity of 18.14 percent was realized by Gannett. Twelve trailing months earnings per share reached a value of $1.94. Last fiscal year, Gannett paid $0.80 in the form of dividends to shareholders. Warren Buffett sold out the GCI stake completly.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.43, the P/S ratio is 1.03 and the P/B ratio is finally 2.35. The dividend yield amounts to 3.33 percent and the beta ratio has a value of 2.45.

Wells Fargo (WFC) has a market capitalization of $226.08 billion. The company employs 274,300 people, generates revenue of $48.391 billion and has a net income of $19.368 billion. Wells Fargo’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $35.295 billion. The EBITDA margin is 72.94 percent (the operating margin is 33.07 percent and the net profit margin 22.50 percent).

Financial Analysis: The total debt represents 12.97 percent of Wells Fargo’s assets and the total debt in relation to the equity amounts to 117.14 percent. Due to the financial situation, a return on equity of 13.16 percent was realized by Wells Fargo. Twelve trailing months earnings per share reached a value of $3.69. Last fiscal year, Wells Fargo paid $0.88 in the form of dividends to shareholders. Warren Buffett increased the WFC stake by 1.08 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.51, the P/S ratio is 2.62 and the P/B ratio is finally 1.55. The dividend yield amounts to 2.82 percent and the beta ratio has a value of 1.39.

U.S. Bancorp (USB) has a market capitalization of $67.43 billion. The company employs 64,486 people, generates revenue of $12.883 billion and has a net income of $5.490 billion. U.S. Bancorp’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.734 billion. The EBITDA margin is 75.56 percent (the operating margin is 38.51 percent and the net profit margin 27.36 percent).

Financial Analysis: The total debt represents 14.64 percent of U.S. Bancorp’s assets and the total debt in relation to the equity amounts to 132.87 percent. Due to the financial situation, a return on equity of 16.41 percent was realized by U.S. Bancorp. Twelve trailing months earnings per share reached a value of $2.94. Last fiscal year, U.S. Bancorp paid $0.78 in the form of dividends to shareholders. Warren Buffett increased the USB stake by 27.37 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.46, the P/S ratio is 3.36 and the P/B ratio is finally 2.00. The dividend yield amounts to 2.51 percent and the beta ratio has a value of 1.00.

Take a closer look at the full list of Warren's latest stock trades. The average P/E ratio amounts to 22.10 and forward P/E ratio is 13.50. The dividend yield has a value of 1.67 percent. Price to book ratio is 5.01 and price to sales ratio 3.28. The operating margin amounts to 28.18 percent and the beta ratio is 1.40. Stocks from the list have an average debt to equity ratio of 4.48.

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Related Stock Ticker Symbols:
KRFT, GCI, WFC, USB, SU, BK, MDLZ, NOV, MCO, CBI, DISH, GM, VRSN

Selected Articles:
· David Einhorn’s Latest Dividend Changes | Greenlight Capital
· 100 Most Bought Stocks By Investment Gurus
· 15 Cheap International Dividend Achievers
· 11 Cheap Stocks From The High-Yield Equity Dividend Achievers Index

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Guru Discussed: Warren Buffett: Current Portfolio, Stock Picks
Stocks Discussed: KRFT, GCI, WFC, USB, SU, BK, MDLZ, NOV, MCO, CBI, DISH, GM, VR,
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