Warren Buffett

Warren Buffett

Last Update: 02-14-2018

Number of Stocks: 48
Number of New Stocks: 1

Total Value: $191,243 Mil
Q/Q Turnover: 3%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Warren Buffett past Portfolios

Warren Buffett 13F Filings

Portfolio DateNumber of StocksTotal Value (Mil)Number of New StocksQ/Q Turnover

Warren Buffett 13D/G Filings

Filing date :

Warren Buffett Watch

  • Warren Buffett’s Berkshire Buys Teva, Apple and Slashes IBM

    Warren Buffett (Trades, Portfolio)’s portfolio reveal Thursday showed that investment managers at his company bought shares of Teva Pharmaceuticals Industries (NYSE:TEVA), Monsanto Co. (NYSE:MON) and Apple (NASDAQ:AAPL) in the fourth quarter. The new filing also showed that Buffett nearly ended his stake in IBM Corp. (NYSE:IBM).


  • Former Buffett Associate Lou Simpson Buys 2 New Stocks

    Lou Simpson (Trades, Portfolio), who formerly managed investments for Berkshire Hathaway’s subsidiary, Geico, reported two new buys at his current firm, SQ Advisors.

    Simpson expanded his favored sector, communications services, in the fourth quarter, purchasing Charter Communications (NASDAQ:CHTR) and Liberty Broadband (NASDAQ:LBRDK). Communications services totaled 33% of the portfolio at fourth-quarter end as the largest sector represented. The value of the 14 positions in SQ Advisors’ portfolio totaled $3.08 billion. Simpson founded the firm in 2010.


  • A Two-Step Approach to Assessing 'Earnings Quality'

    One of the most important tasks a value investor has is judging “earnings quality.” A stock’s P/E ratio tells you something. But, it doesn’t tell you enough. And the longer you are invested in a stock – the less it tells you. Value investors often try to fix this problem by focusing on free cash flow instead of earnings per share. They also think a lot about return on invested capital. For example, Joel Greenblatt (Trades, Portfolio)’s “The Magic Formula” uses EV/EBIT (which is a pre-tax P/E ratio that counts debt as part of the price) as a sort of earnings measure combined with last year’s return on capital.

    However, there are a few problems with a true stock picker – not a buyer of a formulaic basket – using that approach. One, you aren’t going to sell the stock in one year. So, return on capital might change quite a bit while you own the stock. Two, earnings are an accounting – rather than an economic – number. This is why Tobias Carlisle’s “The Acquirer’s Multiple” which is based on the simple EV/EBITDA approach (with no return on capital consideration) might work just as well. An acquirer doesn’t actually think in terms of reported earnings or even EBIT. An acquirer uses a measure of cash flow vs. the price of debt and equity in the business. So, an EV/EBITDA approach is closer to a cash approach. Also, it’s possible that return on capital may “revert to the mean.” There’s actually a lot of evidence that in well settled, non-cyclical industries reversion to the mean in terms of returns on capital is pretty weak. For example, in restaurants – Starbucks (SBUX), Dunkin Donuts (DNKN), and Domino’s (DPZ) – there is strong profit persistence where the coffee chain, pizza chain, etc. with the highest return on capital keeps having the highest return on capital and the ones with the lowest keep having the lowest. Think about what the return on capital is for two leaders in coffee – Starbucks and Dunkin Brands – and then try to imagine what it is for everyone else. You just don’t see the same reversion to the mean that you see in cyclical industries like insurance, semiconductors, etc. This persistently high level of profitability among companies who are leaders, have better business models, etc. is why Warren Buffett (Trades, Portfolio) could make bets that pay off over long periods of time. He has owned Wells Fargo (WFC) for about 28 years and has outperformed what he could do by picking a random bank. Returns on capital can completely avoid reversion to the mean in situations where you have excellent product economics and low growth in tangible assets. For example, Berkshire Hathaway (NYSE:BRK.B) has owned See’s Candies for a very long time and had a very high return on capital – but, what hasn’t it done? It hasn’t opened many See’s Candies locations in states where the brand wasn’t already well established. Likewise, Nebraska Furniture Mart can have strong economics versus other furniture stores – but it’s actually had very low growth in terms of the number of locations, square footage, etc.


  • Guess Which Stocks Warren Buffett Bought: Contest

    GuruFocus runs a contest every quarter wherein people guess the stocks they think Warren Buffett (Trades, Portfolio) bought.

    The fourth-quarter contest begins today. To participate, pick THREE securities you think he rounded up in the three months from Sept. 30 to Dec. 31 and type them into the “comments” section below this article. Hit “post comment.”


  • How Warren Buffett Acts in a Flash Crash

    At the beginning of this week, the Dow Jones Industrial Average dropped around 1,175 points in a single day- its largest fall in intraday trading ever.

    While this was the index's most substantial drop in terms of points, it was not the largest drop in percentage terms. In fact, it did not come anywhere close. The crash of 1987 still holds the record for the most significant drop in percentage terms, when the index lost around 22% in one day.


  • Buffett, Bezos and Dimon’s Tapeworm

    Warren Buffett (Trades, Portfolio), Jeff Bezos and Jamie Dimon recently announced their three companies will form a non-profit entity to attempt to drive down health care costs for them and possibly other companies. In the process of making the announcement, Buffett called the health care sector of the U.S. a “hungry tapeworm” in the economy. We view this as PR grandstanding, incorrect in its assumptions about health care costs and the height of hypocrisy. It reminds us who might be the real tapeworms in the U.S. economy and could open some great doors to future appreciation.

    Bezos has spent the last year creating future revenue fantasies by spooking entire industries as he created the largest net worth on paper in the world. Every time he does this, the target companies plummet and Amazon’s (NASDAQ:AMZN) shares benefit. The health care sector is his latest punching bag, as reflected in these stocks getting trounced on January 30, 31 and Feb. 2. Below is the chart of what happened in the aftermath of the retail and grocery bloodbath from Amazon’s Whole Foods acquisition last year (1):


  • Warren Buffett and the Art of Stock Picking

    I recently listened to a podcast where the author of a Warren Buffett (Trades, Portfolio) biography (Roger Lowenstein, "The Making of an American Capitalist") mentioned the “art” part of stock picking in regard to what Warren Buffett (Trades, Portfolio) does. In other words, business analysis as opposed to just looking at the numbers here at GuruFocus or in a Moody’s Manual or something.

    I thought this was an important topic to discuss. Because I get a lot of questions – including the recent one about free cash flow yields I answered in an article yesterday – that basically come down to: What’s the “rule” for how best to handle this subject? Should I buy low price-to-book stocks? Magic formula stocks? Low P/E stocks?


  • Anthem Soars on Strong Operating Revenue Growth

    Anthem Inc. (NYSE:ANTM), a major health benefits company, said fourth-quarter operating revenues increased 4.5% year over year, capping a strong finish to fiscal 2017.

    The Indianapolis-based company reported $22.4 billion in revenue for the quarter, outperforming analyst expectations by approximately $0.26 billion.


  • Would Warren Buffett Be Able to Succeed Today?

    One question I often ask myself is: "Would Warren Buffett (Trades, Portfolio) be able to replicate his historic performance in today's markets?"

    Even though the "Oracle of Omaha" has said before that he could generate returns of 50% or more per annum if he were managing less money today, there are several factors present in today's markets that could make this process a lot harder.


  • Healthcare Shares Fall With Buffett in the Game

    Today’s announcement of a health care partnership between legendary investor Warren Buffett (Trades, Portfolio) and two major corporations is striking a bit of panic on Wall Street.

    Stocks of U.S. health insurers were down by more than 7% just before market close. That was hours after Berkshire Hathway's (NYSE:BRK.A) (NYSE:BRK.B) chairman and CEO announced plans to join up with Amazon’s (NASDAQ:AMZN) Jeff Bezos and JPMorgan’s (NYSE:JPM) Jamie Dimon to create an independent health care company to support their hundreds of thousands of U.S. employees.


  • What Would Benjamin Graham Buy Today?

    With markets around the world trading at all-time highs and inflated valuations, I thought it would be interesting to go hunting for Benjamin Graham-style stocks to see if there are any companies out there that might still qualify as deep-value investments.

    For this test, I screened the market using a version of Graham’s Enterprising Investor screen:


  • New Feature Announcement: The Yield Curve

    We are pleased to announce that we have added a new page titled “U.S. Treasury Yield Curve.”

    Definition of yield curve


  • US Airline Stocks Halt Descent

    The top U.S. airlines saw some impressive fourth-quarter earnings. But that was not enough to give Wall Street assurances of no turbulence ahead.

    Stocks plunged simultaneously as the heads of the airlines recited their earnings, which barely registered once everybody started talking about a potential price war. The hysteria was set off on Wednesday after one of the airlines (United Continental Holdings) announced plans to add seats and passengers over the next few years.


  • Warren Buffett’s Airline Holdings Plunge in 2-Day Sector Selloff

    Warren Buffett (Trades, Portfolio)’s holdings in airlines nosedived approximately $1 billion in value from Jan. 23 to Jan. 25 amid fears of a potential price war among the carriers.

    United Continental Holdings Inc. (NYSE:UAL) tumbled over 15% over a two-day period on the announcement of the airline’s plan to increase annual capacity between 4% and 6% by 2020. Although the company said that such expansion could lead to strong earnings growth over the next three years, its growth plans also raised concerns about declining airfares, according to CNBC columnists F. Imbert and L. Josephs.


  • Should Value Investors Use Liquidity as an Investment Style?

    For most people, value investing is unpractical.

    It is not practical for several reasons. First of all, to be a successful value investor, you have to be able to spend hours combing through companies' balance sheet and income statements. The best way to find the market's most undervalued stocks is to do plenty of research; there is no shortcut.


  • Is Berkshire Hathaway a Buy?

    Warren Buffett (Trades, Portfolio) is undoubtedly the most respected value investor in the business. His company, Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B), has delivered staggering returns to investors over many decades, making it one of finance’s greatest engines of value identification, exploitation and creation ever. Long-time Berkshire watchers might even be forgiven for considering adding, after death and taxes, a third certainty to life: That Berkshire Hathaway will always deliver healthy compound annual growth.

    The decades-long track record of high performance has been one of the few “sure things” during multiple market cycles. But as with any investment prospect, we must look to the future, not the past (though the past is admittedly often prologue). So for those who do not currently own Berkshire stock, the question is this: Is now a good time to buy?


  • Warren Buffett on Airlines

    When, in 2016, it was revealed that Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) had started buying airline stocks in large volumes, Buffett watchers (and the rest of Wall Street) was caught by surprise.

    Of all the companies out there, few have attracted as much negative attention from Buffett as airlines.


  • Warren Buffett on Long-Term Investing

    Warren Buffett (Trades, Portfolio) is known for two things in particular, value investing and  long-term investing. Buffett’s ability to buy and hold stocks for many decades is perhaps his best quality (or second-best after being able to pick the best stocks), and this long-term outlook has been responsible for many tens of billions of dollars in gains over the years.

    With this being the case, I gathered some quotes from Buffett’s letters to investors of Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) he has distributed over the years on the topic of long-term investing. This is by no means a comprehensive collection of quotes, it is just a collection on the importance of long-term investing in regard to Berkshire Hathaway.


  • Does the Buy-and-Hold Strategy Still Work?

    The cryptocurrency market was recently valued around $800 billion, slightly lower than the market value of Apple Inc. (NASDAQ:AAPL) and higher than Alphabet Inc.'s (NASDAQ:GOOG)(NASDAQ:GOOGL) current market cap of about $782 billion. Now with the crypto market down to below $500 billion in market cap, it clearly shows that for those involved in the currency market, the buy-and-hold strategy may no longer work, especially in cryptocurrencies.

    Bitcoin has been at the center of it all. The volatility, the hype and the misconception of global trade could soon be pegged on the cryptocurrency market as they take over traditional methods of payment.


  • Valuing Uncertainties

    Valuing uncertainties

    As we enter 2018, numerous uncertainties are dominating the minds of American citizens and investors. We are happy to weigh in on what we consider to be both unuseful and useful uncertainties as they pertain to long-duration ownership of common stocks.


  • The Secrets to Achieving Warren Buffett’s 500-Pages-Per-Week Reading Challenge

    Warren Buffett (Trades, Portfolio) gave a talk to Columbia business school students in late 2001 or early 2002, the last question that was asked to Buffett was, “What was he’s secret?” And Buffett replied, picking up a big pile of papers, ”I read 500 pages a week, and anyone can do it. It’s like compound knowledge, so if you start today, it will build up over time."

    Watch it below.


  • Warren Buffett's Geico Adventure Part 4: The Final Chapter

    This is part four of a series on Warren Buffett (Trades, Portfolio)’s Geico story. You can access the previous three parts via the links below:

  • Warren Buffett vs. Hedge Funds: And the Winner Is…

    “Bogle’s Folly, as the first index fund was derisively described, seems to have morphed into Buffett’s Revenge.” --Barry Ritholtz


  • Warren Buffett's Geico Adventure Part 3: The Turnaround

    This is part three of a series on Warren Buffett (Trades, Portfolio)’s Geico story.

  • Warren Buffett on Succession, Tax Cuts and Market Valuation

    Warren Buffett (Trades, Portfolio), arguably the greatest investor of all time, appeared on CNBC Wednesday morning to discuss appointing Gregory Abel as vice chairman for noninsurance operations and Ajit Jain as vice chairman for the insurance business. Buffett assured us he is in good health.

    I do not think this news is actually a big deal as both executives will mostly be doing what they have been doing, although it does lift some of the mystery surrounding Buffett's succession plan.


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