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Contest: What did Warren Buy during the third quarter?

November 03, 2006 | About:

Berkshire's third quarter report is out today, it reveals that Warren Buffett bought another $1 billion worth of stocks. What stocks did he buy? GuruFocus is calling its readers to participate in a contest to "guess" what he bought. Every reader can participate by inputing up to 3 stocks following this thread. The top 2 closest winners will be announced on GuruFocus and each will win a copy of "You can be a Stock Market Genius". The deadline of this contest is the day when Bershire reports its third quarter holdings, before Nov. 15.

What are the possibilites? Third quarter the market has done very well. Warren can add to his new purchases of J&J (JNJ), Target (TGT), Sanofi-Aventis (SNY). It can of course purchase some new companies. With so much cash in hands, Warren Buffett is limited to large cap stocks only.

With no major catastrophes in this year's third quarter, Berkshire Hathaway reported an almost fivefold increase in income of $2.77 billion. Under the leadship of Warren Buffett, Berkshire always makes a lot of money for its shareholders. As his follower, GuruFocus is more interested in what stocks he bought. We have reported recently Warren Buffett bought J&J (JNJ) and Target (TGT) during the second quarter. His third quarter report reveals that Warren Buffett bought $1 billion dollars of stocks. What can that be?

Table: History of Warren Buffett's recent purchases and his cash holdings

Quarter

Q1-05

Q2-05

Q3-05

Q4-05

Q1-06

Q2-06

Q3-06

Total Cost of Stocks Bought ($billion)

10.96

12.94

15.08
21.34
22.3
24.87
25.92
Net Cash Used ($billion)
1.9
1.98
2.14
6.26
0.96
2.57
1.05
Stocks Bought

LOW
LXK
HD
BUD
WMT

??
Cash in Hands ($billion)
44.06
43.25
41.1
40.4
36
34.1
35.5

Rating: 3.0/5 (1 vote)

Comments

gurufocus
Gurufocus premium member - 8 years ago
Readers, please input your answers of up to 3 stocks following this thread. Winners get a copy of "You can be a Stock Market Genius", a great book.
danielw
Danielw - 8 years ago
UPS, USG and SNY
investorial
Investorial - 8 years ago
USG, TGT, UPS
vooch
Vooch - 8 years ago
TGT, UPS, USG
oskibear
Oskibear - 8 years ago
USG TGT FDX
codemonkey
Codemonkey - 8 years ago
USG TGT SNY
expectingrain
Expectingrain - 8 years ago
kss usg irm
CarstenPrause
CarstenPrause - 8 years ago
HD MA WU
yeryer
Yeryer - 8 years ago
MSFT, PHM, JNJ
alex24_malaga
Alex24_malaga - 8 years ago
GE, TGT & SNY
Wahoo
Wahoo - 8 years ago
Buffett bought more HD,JNJ,WM
yellowfin46
Yellowfin46 - 8 years ago
Warren Buffet bought more COST, STI and LOW.
dzilber01
Dzilber01 - 8 years ago
HD TGT USG
gokou3
Gokou3 - 8 years ago
USG HD LOW
joeldee
Joeldee - 8 years ago
JNJ, SNY, GE
jimprit
Jimprit - 8 years ago
Buffett bought WMT JNJ TGT
pvincett
Pvincett - 8 years ago
No new stocks just increased holdings in: USG, SNY, COP
frankomite
Frankomite - 8 years ago
TGT, JNJ & USG
turdman
Turdman - 8 years ago
USG SNY TGT
cyrano
Cyrano premium member - 8 years ago
WMT,JNJ,MMM
chihin
Chihin - 8 years ago
GE,TGT,COP
romypolito
Romypolito - 8 years ago
My guess is that Mr. Warren Buffet bought one billion dollar worth of stocks from Wall Mart. ( Right now , it only owns 0.5% of the total outstanding shares.
biscosc
Biscosc - 8 years ago
WMT USG MMM
sgeranpa
Sgeranpa - 8 years ago
WMT, JNJ, GE
charliet
Charliet - 8 years ago
WMT, UPS, and HD
dtomaz
Dtomaz - 8 years ago
USG, TGT, SNY
meklarian
Meklarian - 8 years ago
USG COP GE
dude
Dude - 8 years ago
To try to pick a new holding, I would say Burger King or Avon Products.
antinvest
Antinvest - 8 years ago
Maybe something new, like Western Union, Mastercard, or one of the Chinese banks
dorybixler
Dorybixler - 8 years ago
s cmcsa ge
vaibhavman
Vaibhavman - 8 years ago
BOught USG WMT COST
jameshies
Jameshies - 8 years ago
Believing in Warren and what I have learned, I say FDX, WMT, BA
john doe
John doe - 8 years ago
kmt jnj tgt
richday101
Richday101 premium member - 8 years ago
Richday101 says: COP, HD & UPS
roberts1001
Roberts1001 - 8 years ago
I'd have to guess USG, UPS and WMT, but it's not really fair to include USG since Berkshire already announced buying 2.6 million shares in Q3.
rjlull
Rjlull - 8 years ago
HD
zhaoweiasu
Zhaoweiasu - 8 years ago
GE, TGT, JNJ
schillinger
Schillinger - 8 years ago
TGT, HD and new ..... MAS
rjlull
Rjlull - 8 years ago
Add LOW to the list.
vooch
Vooch - 8 years ago
LOW NKE USG....hehehehe
roberts1001
Roberts1001 - 8 years ago
It looks like some purchases are yet to be disclosed. According to the 13F-HR Berkshire bought IRM, LOW, NKE and USG. If I did my addition correctly, the total cost of these purchases (estimating the purchase prices) was about $0.5B. This figure is short of reported cash flows from purchase of equities by about $1.3B.
kfh227
Kfh227 premium member - 8 years ago
JNJ, BAC to be different and TJX to be diffeent ;)
Badger
Badger - 7 years ago
He bought WMT, JNJ and PG

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