In addition to the businesses he owns through Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial), Warren Buffett (Trades, Portfolio) has stakes in 46 publicly traded companies. But he has shown particular interest in several of them over recent quarters.
Buffett tends to look for companies that are high quality with an âenduring âmoatâ that protects excellent returns on invested capital,â he said in a 2007 shareholder letter. Typically, he wants these companies to earn the high returns on capital with minimal capital requirements.
âLong-term competitive advantage in a stable industry is what we seek in a business. If that comes with rapid organic growth, great. But even without organic growth, such a business is rewarding,â Buffett wrote.
Recently, the companies that he is buying most consistently are: Apple Inc. (AAPL, Financial), Bank of New York Mellon Corp. (BK, Financial), Delta Air Lines Inc. (DAL, Financial), General Motors Co. (GM, Financial) and Goldman Sachs Group Inc. (GS, Financial).
ROIC: 35.33%
Five-year EPS growth: 14.3%
Price-book ratio: 6.85
Either Buffett or Ted Weschler has bought shares of Apple in all but one of the consecutive quarters since starting the position in the first of 2016. The tech giantâs price per share Berkshire purchased averaged around $146, giving it an estimated gain of 6% based on Tuesdayâs price of $154.68. As Buffettâs largest holding, Apple makes up 25.79% of Berkshireâs stock portfolio.
Apple Inc. has a market cap of $731.61 billion; its shares were traded with a price-earnings ratio of 13.04 and price-sales ratio of 2.92. The trailing 12-month dividend yield of Apple Inc. stocks is 1.81%. The forward dividend yield of Apple Inc. stocks is 1.87%. GuruFocus rated Apple Inc. the business predictability rank of 3-star.
Bank of New York Mellon Corp. (BK, Financial)
ROE: 10.96%
Five-year EPS growth: 18.2%
Price-book ratio: 1.37
Buffett has purchased shares of Bank of New York Mellon in each quarter except two since the first quarter of 2016. Most recently, he reported a 20.14% increase to the holding in the third quarter of 2018. Bank of New York Mellon occupies 1.8% of the portfolio, and Berkshire owns about 7.87% of its shares outstanding.
Bank of New York Mellon Corp. has a market cap of $50.53 billion; its shares were traded around $52.61 Tuesday with a price-earnings ratio of 12.34 and price-sales ratio of 3.40. The trailing 12-month dividend yield of Bank of New York Mellon Corp. stocks is 2.04%. The forward dividend yield of Bank of New York Mellon Corp. stocks is 2.10%.
Delta Air Lines Inc. (DAL, Financial)
ROIC: 15.43%
Five-year EPS growth: 5%
Price-book ratio: 2.43
Buffett purchased Delta Airlines shares over the first three quarters of 2018. Berkshire owns about 9.56% of the company, giving it 1.71% portfolio space. It has an estimated gain around 4% based on its average share price of $49 and Tuesdayâs price of $48.22.
Delta Air Lines Inc. has a market cap of $33.06 billion; its shares were traded with a price-earnings ratio of 8.54 and price-sales ratio of 0.75. The trailing 12-month dividend yield of Delta Air Lines Inc. stocks is 2.70%. The forward dividend yield of Delta Air Lines Inc stocks is 2.92%. Delta Air Lines Inc.
General Motors Co. (GM, Financial)
ROIC: 5.3%
Five-year EPS growth: -22.4%
Price-book ratio: 1.41
Buffett purchased shares of General Motors over the second and third quarters of 2018. He owns about 3.72% of the company, worth about 0.8% of the portfolio.
General Motors Co. has a market cap of $54.3 billion; its shares were traded around $38.47 Tuesday with a price-earnings ratio of 63.06 and price-sales ratio of 0.38. The trailing 12-month dividend yield of General Motors Co. stocks is 3.95%. The forward dividend yield of General Motors Co. stocks is 3.95%.
Goldman Sachs Group Inc. (GS, Financial)
ROE: 10.5%
Five-year EPS growth: -6.7%
Price-book ratio: 0.83
Buffett purchased shares of Goldman Sachs in the second and third quarters of 2018. It occupies 1.86% of Berkshireâs portfolio, with the stake equaling 4.93% of Goldmanâs shares outstanding.
Goldman Sachs Group Inc. has a market cap of $74.58 billion; its shares were traded around $200.50 Tuesday with a price-earnings ratio of 7.93 and price-sales ratio of 2.40. The trailing 12-month dividend yield of Goldman Sachs Group Inc. stocks is 1.56%. The forward dividend yield of Goldman Sachs Group Inc stocks is 1.60%.
See more of Buffettâs high-conviction stocks here.
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