As U.S. stocks retreat 1.9% this month off their five-year highs, three stocks in Warren Buffett (Trades, Portfolio)’s portfolio fell to their 52-week lows.
Buffett, the chairman and CEO of Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial) had 49 stocks in his portfolio at the end of the second quarter. It was valued at $129.7 billion and 39% of it was concentrated in consumer defensive stocks.
In his later life, Buffett’s investing philosophy evolved from buying fair businesses at a wonderful price to buying wonderful businesses at a fair price.
In order from smallest to largest, these stocks he considers wonderful businesses are trading at lower prices: LiLAC Group (LILAK, Financial)(LILA, Financial), DaVita Inc. (DVA, Financial) and Coca-Cola Co. (KO, Financial).
LiLAC Group (LILAK, Financial)(LILA, Financial)
Shares of LiLAC (LILAK, Financial) closed Friday at $26.99 per share, about 1.6% above their 52-week low price. Shares of LiLAC (LILA, Financial) closed at $27.22, about 2.5% above their 52-week low price.
LiLAC Group comprises the Latin American and Caribbean operations of Liberty Global Group, the world’s largest international TV and broadband company.
Buffett holds 1,284,020 shares of LILAK shares, representing 0.03% of the portfolio. He bought 916,672 shares in the second quarter, for which he paid $39 per share on average. He also holds 2,714,854 LILA shares, representing 0.07% of the portfolio. He bought 2,714,854 shares in the second quarter, for which he paid $37 on average.
Lilac Group has a market cap of $4.7 billion, with a P/B ratio of 0.35 and P/S ratio of 1.11.
Shares of DaVita closed Friday at $55.16, about 0.1% above their 52-week low. DaVita is the owner of kidney dialysis center in the U.S. and globally.
Berkshire’s DaVita shares were purchased by one of Buffett’s two co-portfolio managers, Ted Weschler. He has purchased 38,565,570 shares of the company, representing 2.3% of the portfolio, for which he paid approximately $49.00 on average.
DaVita Inc. has a market cap of $11.41 billion; it has a P/E ratio of 32.46 and P/S ratio of 0.88. DaVita had an annual average earnings growth of 11.7% over the past 10 years. GuruFocus rated DaVita the business predictability rank of 4.5-star.
Shares of Coca-Cola closed Friday at $42.33, about 3.8% above its 52-week low.
Coca-Cola is the Coke and beverage company and is ranked as the third most-valuable brand, with a value of $73.1 billion.
Coca-Cola is Buffett’s third-largest holding. He holds 400 million shares of the company, valued at $18.13 billion, which equals approximately 13.98% of his portfolio. Coca-Cola’s stock price is down 1.3% for the last year.
Coca-Cola Co. has a market cap of $182.27 billion; it has P/E ratio of 25.59 and P/S ratio of 4.29. The trailing 12-month dividend yield of Coca-Cola is 3.28%. The forward dividend yield is 3.32%. Coca-Cola had an annual average earnings growth of 6.6% over the past 10 years.
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