Legendary investor Warren Buffett compounded his company Berkshire Hathaway’s book value by 20.3% on average from 1965 to 2009, greatly enhanced his own wealth and that of his fellow investors.
His every investment move is being watched and sometimes followed by investors around world. There are obviously things Buffett does other investors cannot do, such as taking an entire company private and incorporate it as an operating unit, or investing in juicy Goldman Sachs an GE preferred shares and warrants during financial crisis in late 2009. In order to take advantage of these moves, investors can choose investing in Berkshire Hathaway (BRK.A, Financial) (BRK.B, Financial), an investment strategy that has been very rewarding for the past 45 years.
Of course, Buffett invests in equities too. These are companies that Berkshire buys sometimes a significant portion but for reasons cannot buy all the shares. Since he only takes positions in a manageable number of companies and since he typically holds them for a long time, It is practical for individual investors to invest with Buffett in stocks that he buys and holds.
There are merits in both investment strategies. But just as Buffett would prefer, before investing one needs to ascertain the stock is in for a good business as well as it is at a reasonable price. The fact that Buffett is buying or selling a stock, is neither sufficient nor necessary condition for an investor to buy the same stock. Investors need to do their own homework to determine what’s best for them.
Still, knowing a stock passes the Berkshire Hathaway investment hurdle is a good starting point to conduct further investigation. To facilitate such research, each quarter, GuruFocus digs into SEC filings and present the portfolio of Warren Buffett and other 70+ investment managers (“Gurus”) in a helpful (we hope) manner. Not all are as good an investor as Buffett, but many have unique approaches that warrant them a place here. Several are openly inspired by Warren Buffett (Bruce Berkowitz, Prem Watsa, Mohnish Pabrai, to name just a few), and many own Berkshire Hathaway stock outright (click here and here to see the complete list of Investment Gurus who own Class A and Class B shares of Berkshire Hathaway)
Specifically, Warren Buffett’s portfolio can be viewed here.
This is the Sector Allocation of the Buffett’s portfolio.
Buffett likes Financials, consumer goods, and industrials.
Not tracked by GuruFocus is the foreign stocks that Berkshire Hathaway holds.
Here we highlight the top holdings:
No. 1: The CocaCola Company (KO, Financial), Weightings: 21.6% - 200,000,000 Shares
The Coca-Cola Company is the world's largest beverage company and is the producer and marketer of soft drinks. The Cocacola Company has a market cap of $122.45 billion; its shares were traded at around $53.12 with a P/E ratio of 16.6 and P/S ratio of 4. The dividend yield of The Cocacola Company stocks is 3.3%. The Cocacola Company had an annual average earning growth of 8.9% over the past 10 years. GuruFocus rated The Cocacola Company the business predictability rank of 3.5-star.
Buffett kept his shares during the quarter. He has held the stock for a long time, since before GuruFocus has data for. For the Buffett’s complete holding history of KO, click here.
No. 2: Wells Fargo & Company (WFC, Financial), Weightings: 19.56% - 320,088,385 Shares
Wells Fargo & Company is a diversified financial services company. Wells Fargo & Company has a market cap of $156.06 billion; its shares were traded at around $30.08 with a P/E ratio of 17.3 and P/S ratio of 1.6. The dividend yield of Wells Fargo & Company stocks is 0.6%. Wells Fargo & Company had an annual average earning growth of 5.1% over the past 10 years.
Buffett held on his shares in this stock too. For the Buffett’s complete holding history of WFC, click here.
No. 3: American Express Company (AXP, Financial), Weightings: 12.28% - 151,610,700 Shares
American Express Company is a credit card company. American Express Company has a market cap of $47.99 billion; its shares were traded at around $40.17 with a P/E ratio of 21.8 and P/S ratio of 1.9. The dividend yield of American Express Company stocks is 1.8%.
Buffett held on his shares in this stock for the quarter. For the Buffett’s complete holding history of AXP, click here.
No. 4: The Procter & Gamble Company (PG, Financial), Weightings: 9.83% - 79,096,784 Shares
The Procter & Gamble Company manufactures and markets a broad range of consumer products in many countries throughout the world. The Procter & Gamble Company has a market cap of $183.63 billion; its shares were traded at around $63.22 with a P/E ratio of 16.9 and P/S ratio of 2.3. The dividend yield of The Procter & Gamble Company stocks is 3%. The Procter & Gamble Company had an annual average earning growth of 12.9% over the past 10 years. GuruFocus rated The Procter & Gamble Company the business predictability rank of 5-star.
Buffett sold about 8.5 million shares during the quarter. Buffett acquired his PG shares when the razor maker Gillette was acquired by Procter and Gamble. For the Buffett’s complete holding history of PG, click here.
No. 5: Kraft Foods Inc. (KFT, Financial), Weightings: 6.34% - 106,734,745 Shares
Kraft Foods, Inc. is the largest branded food and beverage company headquartered in the U. Kraft Foods Inc. has a market cap of $44.81 billion; its shares were traded at around $30.29 with a P/E ratio of 14.6 and P/S ratio of 1.1. The dividend yield of Kraft Foods Inc. stocks is 3.9%.
Buffett sold about 32 million shares of the stock in 1Q10. Kraft bought the British company Cadbury recently and Buffett expressed his displeasure openly towards the deal and now he is voting with his feet. For the Buffett’s complete holding history of KFT, click here.
No. 6: Wesco Financial Corp (WSC, Financial), Weightings: 4.32% - 5,703,087 Shares
Wesco Financial Corp. is engaged in three principal businesses through wholly owned subsidiaries: the insurance business, through Wesco-Financial Insurance Company and The Kansas Bankers Surety Company; and the steel service center business, through Precision Steel Warehouse, Inc. Wesco Financial Corp has a market cap of $2.6 billion; its shares were traded at around $365.1 with a P/E ratio of 55.9 and P/S ratio of 3.2. The dividend yield of Wesco Financial Corp stocks is 0.4%.
This is the 80% owned subsidiary managed by Berkshire’s Vice-Chairman Charlie Munger. For the Buffett’s complete holding history of WSC, click here.
Whether you want to invest in or invest with Buffett’s company Berkshire Hathaway, GuruFocus can add value to your investment process.
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
His every investment move is being watched and sometimes followed by investors around world. There are obviously things Buffett does other investors cannot do, such as taking an entire company private and incorporate it as an operating unit, or investing in juicy Goldman Sachs an GE preferred shares and warrants during financial crisis in late 2009. In order to take advantage of these moves, investors can choose investing in Berkshire Hathaway (BRK.A, Financial) (BRK.B, Financial), an investment strategy that has been very rewarding for the past 45 years.
Of course, Buffett invests in equities too. These are companies that Berkshire buys sometimes a significant portion but for reasons cannot buy all the shares. Since he only takes positions in a manageable number of companies and since he typically holds them for a long time, It is practical for individual investors to invest with Buffett in stocks that he buys and holds.
There are merits in both investment strategies. But just as Buffett would prefer, before investing one needs to ascertain the stock is in for a good business as well as it is at a reasonable price. The fact that Buffett is buying or selling a stock, is neither sufficient nor necessary condition for an investor to buy the same stock. Investors need to do their own homework to determine what’s best for them.
Still, knowing a stock passes the Berkshire Hathaway investment hurdle is a good starting point to conduct further investigation. To facilitate such research, each quarter, GuruFocus digs into SEC filings and present the portfolio of Warren Buffett and other 70+ investment managers (“Gurus”) in a helpful (we hope) manner. Not all are as good an investor as Buffett, but many have unique approaches that warrant them a place here. Several are openly inspired by Warren Buffett (Bruce Berkowitz, Prem Watsa, Mohnish Pabrai, to name just a few), and many own Berkshire Hathaway stock outright (click here and here to see the complete list of Investment Gurus who own Class A and Class B shares of Berkshire Hathaway)
Specifically, Warren Buffett’s portfolio can be viewed here.
This is the Sector Allocation of the Buffett’s portfolio.
Industry2009-12-312010-03-31 Financials32.8%41% Utilities0.6%0.7% Consumer Services6.6%7.6% Health Care3.8%3.7% Consumer Goods36.2%38.9% Industrials16.3%4.3%Oil & Gas3.4%3.5%
Buffett likes Financials, consumer goods, and industrials.
Not tracked by GuruFocus is the foreign stocks that Berkshire Hathaway holds.
Here we highlight the top holdings:
No. 1: The CocaCola Company (KO, Financial), Weightings: 21.6% - 200,000,000 Shares
The Coca-Cola Company is the world's largest beverage company and is the producer and marketer of soft drinks. The Cocacola Company has a market cap of $122.45 billion; its shares were traded at around $53.12 with a P/E ratio of 16.6 and P/S ratio of 4. The dividend yield of The Cocacola Company stocks is 3.3%. The Cocacola Company had an annual average earning growth of 8.9% over the past 10 years. GuruFocus rated The Cocacola Company the business predictability rank of 3.5-star.
Buffett kept his shares during the quarter. He has held the stock for a long time, since before GuruFocus has data for. For the Buffett’s complete holding history of KO, click here.
No. 2: Wells Fargo & Company (WFC, Financial), Weightings: 19.56% - 320,088,385 Shares
Wells Fargo & Company is a diversified financial services company. Wells Fargo & Company has a market cap of $156.06 billion; its shares were traded at around $30.08 with a P/E ratio of 17.3 and P/S ratio of 1.6. The dividend yield of Wells Fargo & Company stocks is 0.6%. Wells Fargo & Company had an annual average earning growth of 5.1% over the past 10 years.
Buffett held on his shares in this stock too. For the Buffett’s complete holding history of WFC, click here.
No. 3: American Express Company (AXP, Financial), Weightings: 12.28% - 151,610,700 Shares
American Express Company is a credit card company. American Express Company has a market cap of $47.99 billion; its shares were traded at around $40.17 with a P/E ratio of 21.8 and P/S ratio of 1.9. The dividend yield of American Express Company stocks is 1.8%.
Buffett held on his shares in this stock for the quarter. For the Buffett’s complete holding history of AXP, click here.
No. 4: The Procter & Gamble Company (PG, Financial), Weightings: 9.83% - 79,096,784 Shares
The Procter & Gamble Company manufactures and markets a broad range of consumer products in many countries throughout the world. The Procter & Gamble Company has a market cap of $183.63 billion; its shares were traded at around $63.22 with a P/E ratio of 16.9 and P/S ratio of 2.3. The dividend yield of The Procter & Gamble Company stocks is 3%. The Procter & Gamble Company had an annual average earning growth of 12.9% over the past 10 years. GuruFocus rated The Procter & Gamble Company the business predictability rank of 5-star.
Buffett sold about 8.5 million shares during the quarter. Buffett acquired his PG shares when the razor maker Gillette was acquired by Procter and Gamble. For the Buffett’s complete holding history of PG, click here.
No. 5: Kraft Foods Inc. (KFT, Financial), Weightings: 6.34% - 106,734,745 Shares
Kraft Foods, Inc. is the largest branded food and beverage company headquartered in the U. Kraft Foods Inc. has a market cap of $44.81 billion; its shares were traded at around $30.29 with a P/E ratio of 14.6 and P/S ratio of 1.1. The dividend yield of Kraft Foods Inc. stocks is 3.9%.
Buffett sold about 32 million shares of the stock in 1Q10. Kraft bought the British company Cadbury recently and Buffett expressed his displeasure openly towards the deal and now he is voting with his feet. For the Buffett’s complete holding history of KFT, click here.
No. 6: Wesco Financial Corp (WSC, Financial), Weightings: 4.32% - 5,703,087 Shares
Wesco Financial Corp. is engaged in three principal businesses through wholly owned subsidiaries: the insurance business, through Wesco-Financial Insurance Company and The Kansas Bankers Surety Company; and the steel service center business, through Precision Steel Warehouse, Inc. Wesco Financial Corp has a market cap of $2.6 billion; its shares were traded at around $365.1 with a P/E ratio of 55.9 and P/S ratio of 3.2. The dividend yield of Wesco Financial Corp stocks is 0.4%.
This is the 80% owned subsidiary managed by Berkshire’s Vice-Chairman Charlie Munger. For the Buffett’s complete holding history of WSC, click here.
Whether you want to invest in or invest with Buffett’s company Berkshire Hathaway, GuruFocus can add value to your investment process.
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
