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Holly LaFon
Holly LaFon
Articles (9202)  | Author's Website |

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

Legendary investor reports 4th-quarter portfolio

February 14, 2018 | About:
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).

Buys

Teva Pharmaceutical Industries Ltd.

Berkshire Hathaway acquired 18,875,721 shares of a new stake in Teva Pharmaceuticals, which had a fourth-quarter average price of $15 per share. The holding represented 0.19% of the portfolio.

Teva Pharmaceutical Industries Ltd. has a market cap of $19.87 billion; its shares were traded around $19.33 Wednesday with and P/S ratio of 0.89. The trailing 12-month dividend yield of Teva Pharmaceutical Industries Ltd. stocks is 4.40%.

Monsanto Co.

Berkshire boosted its stake in Monstanto Co. by 2,835,278, representing 31.95% of the portfolio. At quarter-end, Berkshire’s stake totaled 11,708,747 shares of Monsanto, representing 0.71% of the portfolio.

Monsanto Co. has a market cap of $52.98 billion; its shares were traded around $120.18 Wednesday with a P/E ratio of 22.26 and P/S ratio of 3.64. The trailing 12-month dividend yield of Monsanto Co. stocks is 1.81%. The forward dividend yield of Monsanto Co. stocks is 1.80%. Monsanto Co had an annual average earnings growth of 7.5% over the past 10 years. GuruFocus rated Monsanto Co. the business predictability rank of 3-star.

Apple

Berkshire increased its stake in Apple by 23.2%, buying 31,241,180 shares for a total of 165,333,962 shares. The stake represented 14.6% of the portfolio. Apple’s fourth-quarter share price averaged $167.

Apple Inc. has a market cap of $849.24 billion; its shares were traded around $167.37 Wednesday with a P/E ratio of 17.20 and P/S ratio of 3.63. The trailing 12-month dividend yield of Apple Inc. stocks is 1.49%. The forward dividend yield of Apple Inc. stocks is 1.53%. Apple Inc. had an annual average earnings growth of 34.6% over the past 10 years. GuruFocus rated Apple Inc. the business predictability rank of 2.5-star.

Sale

IBM Corp.

Buffett reduced 94.5% of his holding of IBM, selling 34,978,653 shares and retaining 2,048,045 shares. Shares of IBM traded for $152 on average in the fourth quarter.

IBM Corp. has a market cap of $143.28 billion; its shares were traded around $154.76 with a P/E ratio of 25.32 and P/S ratio of 1.80. The trailing 12-month dividend yield of IBM Corp. stocks is 3.87%. The forward dividend yield of IBM Corp. stocks is 3.98%. IBM Corp. had an annual average earnings growth of 2.4% over the past 10 years.

See Warren Buffett (Trades, Portfolio)’s portfolio here.

About the author:

Holly LaFon
I'm a financial journalist with a master of science in journalism from Medill at Northwestern University.

Visit Holly LaFon's Website


Rating: 4.5/5 (2 votes)

Voters:

Comments

ciba
Ciba - 10 months ago    Report SPAM

The content isnt worth an article. Sorry Holly

mrabebe2
Mrabebe2 - 9 months ago    Report SPAM

Holly,

What stocks do you like to recommend as a strong buy under the current market environment? I look forward to hearing back from you soon.

nkvenne
Nkvenne premium member - 9 months ago

I agree with Ciba. This article would be more informative if you would explain why he is buying TEVA.

mrabebe2
Mrabebe2 - 9 months ago    Report SPAM

Holly,

Can you please explain why the company started a new position in TEVA? Thank you for your time.

Please leave your comment:


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