In the previous article we reported that Berkshire Hathaway bought into 4 new stocks and sold 3 old ones. As pointed by readers, most of those positions are not Warren Buffett’s. They are actually from Buffett’s managers Ted Weschler and Todd Combs. But Warren Buffett did buy more of his favorite companies Wells Fargo and IBM, and sold Johnson & Johnson during the third quarter. As of 09/30/2012, Berkshire Hathaway owns 38 stocks with a total value of $75.3 billion. These are the summary of the buys and sells for Berkshire’s portfolio.
This is the sector weightings of his portfolio:
These are the top 5 holdings of Warren Buffett
Added: Wells Fargo & Co (WFC, Financial)
Warren Buffett added to his holdings in Wells Fargo & Co by 2.8%. His purchase prices were between $32.85 and $36.1, with an estimated average price of $34.06. The impact to his portfolio due to this purchase was 0.53%. His holdings were 422,549,545 shares as of 09/30/2012. Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage and consumer finance services through stores, its Internet site and other distribution channels across North America as well as internationally. Wells Fargo & Co has a market cap of $170.85 billion; its shares were traded at around $31.6 with a P/E ratio of 10.2 and P/S ratio of 2. The dividend yield of Wells Fargo & Co stocks is 2.7%. Wells Fargo & Co had an annual average earnings growth of 2.2% over the past 10 years.
Warren Buffett keeps buying Wells Fargo every quarter during the past years. His average cost per share is about $30, which is close to where it is traded now. This is the holding history of Warren Buffett with Wells Fargo:
Added: International Business Machines Corp (IBM, Financial)
Warren Buffett added to his holdings in International Business Machines Corp by 1.31%. His purchase prices were between $183.09 and $207.31, with an estimated average price of $196.84. The impact to his portfolio due to this purchase was 0.24%. His holdings were 67,517,896 shares as of 09/30/2012. IBM is an information technology (IT) company. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. International Business Machines Corp has a market cap of $216.72 billion; its shares were traded at around $185.07 with a P/E ratio of 13 and P/S ratio of 2. The dividend yield of International Business Machines Corp stocks is 1.8%. International Business Machines Corp had an annual average earnings growth of 11.8% over the past 10 years. GuruFocus rated International Business Machines Corp the business predictability rank of 4.5-star.
This is the holding history of Warren Buffett with IBM:
His average cost per share is about $173. Now the stock is traded about 7% above Buffett’s cost:
Reduced: Johnson & Johnson (JNJ, Financial)
Warren Buffett reduced to his holdings in Johnson & Johnson by 95.24%. His sale prices were between $67.21 and $69.55, with an estimated average price of $68.34. The impact to his portfolio due to this sale was -0.9%. Warren Buffett still held 492,028 shares as of 09/30/2012. Johnson & Johnson is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. Johnson & Johnson has a market cap of $192.67 billion; its shares were traded at around $69.1 with a P/E ratio of 13.8 and P/S ratio of 3. The dividend yield of Johnson & Johnson stocks is 3.5%. Johnson & Johnson had an annual average earnings growth of 7.2% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 2.5-star.
Warren Buffett keeps selling Johnson & Johnson (JNJ), although he spoke favorably about the company before. This is the holding history of Buffett with JNJ. He keeps selling, now Berkshire has only about half a million shares left. At the peak in 2007, Buffett owned more than 61 million shares.
What is going wrong with JNJ? GuruFocus warning signs do show that JNJ has shrinking profit margins; its asset growth is also faster than revenue growth. This is the historical gross margin of JNJ. It does shown steady decline, which is usually a sign of losing to competition. At the same time, JNJ is traded at close to 10-year, although the stock only appreciated 15% over the past 10 years.
Added: Davita Inc (DVA, Financial)
Berkshire added to his holdings in Davita Inc by 9.65%. His purchase prices were between $94.8 and $103.61, with an estimated average price of $98.19. The impact to his portfolio due to this purchase was 0.12%. His holdings were 10,197,569 shares as of 09/30/2012. DaVita Inc. is one of the largest providers of high-quality dialysis and related services for patients suffering from chronic kidney failure, also known as end stage renal disease. Davita Inc has a market cap of $10.64 billion; its shares were traded at around $112.32 with a P/E ratio of 18.7 and P/S ratio of 1.5. Davita Inc had an annual average earnings growth of 17.8% over the past 10 years. GuruFocus rated Davita Inc the business predictability rank of 3.5-star.
It is said that Davita is not a Buffett purchase, rather it is from his lieutenant Ted Weschler. Read Geoff Gannon’s Why Ted Weschler Keeps Buying DaVita (DVA).
Here is the complete portfolio of Warren Buffett. Also check out:
1. Warren Buffett's Undervalued Stocks
2. Warren Buffett's Top Growth Companies, and
3. Warren Buffett's High Yield stocks
- New Purchases: DE, PCP, WBC, MEG,
- Added Positions: WFC, IBM, GM, NOV, DVA,
- Reduced Positions: JNJ, GE, V, UPS,
- Sold Out: CVS, DG, IR,
This is the sector weightings of his portfolio:
| Financials | 35.8% |
| Consumer Goods | 27.3% |
| Technology | 18.6% |
| Consumer Services | 9.5% |
| Oil & Gas | 4% |
| Industrials | 3.3% |
| Health Care | 1.8% |
These are the top 5 holdings of Warren Buffett
- Coca-Cola Co (KO) - 400,000,000 shares, 20.1% of the total portfolio.
- Wells Fargo & Co (WFC) - 422,549,545 shares, 19.4% of the total portfolio. Shares added by 2.8%
- International Business Machines Corp (IBM) - 67,517,896 shares, 18.6% of the total portfolio. Shares added by 1.31%
- American Express Co (AXP) - 151,610,700 shares, 11.4% of the total portfolio.
- Procter & Gamble Co (PG) - 52,793,078 shares, 4.9% of the total portfolio. Shares reduced by 11.42%
Added: Wells Fargo & Co (WFC, Financial)
Warren Buffett added to his holdings in Wells Fargo & Co by 2.8%. His purchase prices were between $32.85 and $36.1, with an estimated average price of $34.06. The impact to his portfolio due to this purchase was 0.53%. His holdings were 422,549,545 shares as of 09/30/2012. Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage and consumer finance services through stores, its Internet site and other distribution channels across North America as well as internationally. Wells Fargo & Co has a market cap of $170.85 billion; its shares were traded at around $31.6 with a P/E ratio of 10.2 and P/S ratio of 2. The dividend yield of Wells Fargo & Co stocks is 2.7%. Wells Fargo & Co had an annual average earnings growth of 2.2% over the past 10 years.
Warren Buffett keeps buying Wells Fargo every quarter during the past years. His average cost per share is about $30, which is close to where it is traded now. This is the holding history of Warren Buffett with Wells Fargo:
Added: International Business Machines Corp (IBM, Financial)
Warren Buffett added to his holdings in International Business Machines Corp by 1.31%. His purchase prices were between $183.09 and $207.31, with an estimated average price of $196.84. The impact to his portfolio due to this purchase was 0.24%. His holdings were 67,517,896 shares as of 09/30/2012. IBM is an information technology (IT) company. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. International Business Machines Corp has a market cap of $216.72 billion; its shares were traded at around $185.07 with a P/E ratio of 13 and P/S ratio of 2. The dividend yield of International Business Machines Corp stocks is 1.8%. International Business Machines Corp had an annual average earnings growth of 11.8% over the past 10 years. GuruFocus rated International Business Machines Corp the business predictability rank of 4.5-star.
This is the holding history of Warren Buffett with IBM:
His average cost per share is about $173. Now the stock is traded about 7% above Buffett’s cost:
Reduced: Johnson & Johnson (JNJ, Financial)
Warren Buffett reduced to his holdings in Johnson & Johnson by 95.24%. His sale prices were between $67.21 and $69.55, with an estimated average price of $68.34. The impact to his portfolio due to this sale was -0.9%. Warren Buffett still held 492,028 shares as of 09/30/2012. Johnson & Johnson is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. Johnson & Johnson has a market cap of $192.67 billion; its shares were traded at around $69.1 with a P/E ratio of 13.8 and P/S ratio of 3. The dividend yield of Johnson & Johnson stocks is 3.5%. Johnson & Johnson had an annual average earnings growth of 7.2% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 2.5-star.
Warren Buffett keeps selling Johnson & Johnson (JNJ), although he spoke favorably about the company before. This is the holding history of Buffett with JNJ. He keeps selling, now Berkshire has only about half a million shares left. At the peak in 2007, Buffett owned more than 61 million shares.
What is going wrong with JNJ? GuruFocus warning signs do show that JNJ has shrinking profit margins; its asset growth is also faster than revenue growth. This is the historical gross margin of JNJ. It does shown steady decline, which is usually a sign of losing to competition. At the same time, JNJ is traded at close to 10-year, although the stock only appreciated 15% over the past 10 years.
Added: Davita Inc (DVA, Financial)
Berkshire added to his holdings in Davita Inc by 9.65%. His purchase prices were between $94.8 and $103.61, with an estimated average price of $98.19. The impact to his portfolio due to this purchase was 0.12%. His holdings were 10,197,569 shares as of 09/30/2012. DaVita Inc. is one of the largest providers of high-quality dialysis and related services for patients suffering from chronic kidney failure, also known as end stage renal disease. Davita Inc has a market cap of $10.64 billion; its shares were traded at around $112.32 with a P/E ratio of 18.7 and P/S ratio of 1.5. Davita Inc had an annual average earnings growth of 17.8% over the past 10 years. GuruFocus rated Davita Inc the business predictability rank of 3.5-star.
It is said that Davita is not a Buffett purchase, rather it is from his lieutenant Ted Weschler. Read Geoff Gannon’s Why Ted Weschler Keeps Buying DaVita (DVA).
Here is the complete portfolio of Warren Buffett. Also check out:
1. Warren Buffett's Undervalued Stocks
2. Warren Buffett's Top Growth Companies, and
3. Warren Buffett's High Yield stocks
