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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 - 10 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 - 10 years ago    Report SPAM
UPS, USG and SNY
investorial
Investorial - 10 years ago    Report SPAM
USG, TGT, UPS
vooch
Vooch - 10 years ago    Report SPAM
TGT, UPS, USG
oskibear
Oskibear - 10 years ago    Report SPAM
USG TGT FDX
codemonkey
Codemonkey - 10 years ago    Report SPAM
USG TGT SNY
expectingrain
Expectingrain - 10 years ago    Report SPAM
kss usg irm
CarstenPrause
CarstenPrause - 10 years ago    Report SPAM
HD MA WU
yeryer
Yeryer - 10 years ago    Report SPAM
MSFT, PHM, JNJ
alex24_malaga
Alex24_malaga - 10 years ago    Report SPAM
GE, TGT & SNY
Wahoo
Wahoo - 10 years ago    Report SPAM
Buffett bought more HD,JNJ,WM
yellowfin46
Yellowfin46 - 10 years ago    Report SPAM
Warren Buffet bought more COST, STI and LOW.
dzilber01
Dzilber01 - 10 years ago    Report SPAM
HD TGT USG
gokou3
Gokou3 - 10 years ago    Report SPAM
USG HD LOW
joeldee
Joeldee - 10 years ago    Report SPAM
JNJ, SNY, GE
jimprit
Jimprit - 10 years ago    Report SPAM
Buffett bought WMT JNJ TGT
pvincett
Pvincett - 10 years ago    Report SPAM
No new stocks just increased holdings in: USG, SNY, COP
frankomite
Frankomite - 10 years ago    Report SPAM
TGT, JNJ & USG
turdman
Turdman - 10 years ago    Report SPAM
USG SNY TGT
cyrano
Cyrano - 10 years ago    Report SPAM
WMT,JNJ,MMM
chihin
Chihin - 10 years ago    Report SPAM
GE,TGT,COP
romypolito
Romypolito - 10 years ago    Report SPAM
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 - 10 years ago    Report SPAM
WMT USG MMM
sgeranpa
Sgeranpa - 10 years ago    Report SPAM
WMT, JNJ, GE
charliet
Charliet - 10 years ago    Report SPAM
WMT, UPS, and HD
dtomaz
Dtomaz - 10 years ago    Report SPAM
USG, TGT, SNY
meklarian
Meklarian - 10 years ago    Report SPAM
USG COP GE
dude
Dude - 10 years ago    Report SPAM
To try to pick a new holding, I would say Burger King or Avon Products.
antinvest
Antinvest - 10 years ago    Report SPAM
Maybe something new, like Western Union, Mastercard, or one of the Chinese banks
dorybixler
Dorybixler - 10 years ago    Report SPAM
s cmcsa ge
vaibhavman
Vaibhavman - 10 years ago    Report SPAM
BOught USG WMT COST
jameshies
Jameshies - 10 years ago    Report SPAM
Believing in Warren and what I have learned, I say FDX, WMT, BA
john doe
John doe - 10 years ago    Report SPAM
kmt jnj tgt
richday101
Richday101 premium member - 10 years ago
Richday101 says: COP, HD & UPS
roberts1001
Roberts1001 - 10 years ago    Report SPAM
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 - 10 years ago    Report SPAM
HD
zhaoweiasu
Zhaoweiasu - 10 years ago    Report SPAM
GE, TGT, JNJ
schillinger
Schillinger - 10 years ago    Report SPAM
TGT, HD and new ..... MAS
rjlull
Rjlull - 10 years ago    Report SPAM
Add LOW to the list.
vooch
Vooch - 10 years ago    Report SPAM
LOW NKE USG....hehehehe
roberts1001
Roberts1001 - 10 years ago    Report SPAM
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 - 10 years ago    Report SPAM
JNJ, BAC to be different and TJX to be diffeent ;)
Badger
Badger - 9 years ago    Report SPAM
He bought WMT, JNJ and PG

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