Buffett's Stock Buffet Has Some Growthy Names


Income investors can sometimes find opportunities when value and growth investors happen to settle on the same names.

Warren Buffett's value-orientedBerkshire Hathaway (BRKA) has stakes in several dividend-paying stocks that also rate fairly high on IBD's growth-oriented criteria.

Moody's Corp. ( MCO ) made up 1.72% of Berkshire's holdings, as of December 2012. (The Q1 holdings report usually is released in mid-May.)

Buffett has said that he likes Moody's for its duopoly with Standard & Poor's as credit-rating providers. However, Berkshire took some profits recently, selling about 6% of its stake in Moody's.

The stock appeared in this space in May 7's IBD. Moody's has a Composite Rating of 97, not far off the best possible 99.

The annualized dividend yield is 1.3%.

Visa ( V ) provides a 0.31% slice of Berkshire's pie. The position was held steady from Q2 2012 through Q4 but was trimmed before that period. The Composite Rating is 97.

The dividend yield is 0.7%.

MasterCard ( MA ) comprises 0.26% of Berkshire's portfolio. The stake hasn't changed in the five quarters ended in Q4.

The Composite Rating is 90. The yield, though, is a minuscule 0.4%.

Torchmark ( TMK ) makes up 0.3% of Berkshire's holdings. Berkshire's stake in the insurer hasn't changed in the five quarters ended in Q4. The Composite Rating is 90.

The dividend yield is 1.1%.

These stakes are small compared to Berkshire's three biggest holdings.Wells Fargo ( WFC ), Coca-Cola (KO) andIBM (IBM) make up 19.2%, 18.9% and 17.1% respectively, of Berkshire's holdings.

None has a Composite Rating of 75 or better.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Personal Finance , Investing Ideas

Referenced Stocks: MA , MCO , TMK , V , WFC

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