In
the
previous article
we reported that Berkshire Hathaway bought into 4 new stocks and
sold 3 old ones. As pointed by readers, most of those positions
are not
Warren Buffett
's. They are actually from Buffett's managers
Ted Weschler
and Todd Combs. But
Warren Buffett
did buy more of his favorite companies Wells Fargo and IBM, and
sold Johnson & Johnson during the third quarter. As of
09/30/2012, Berkshire Hathaway owns 38 stocks with a total value
of $75.3 billion. These are the summary of the buys and sells for
Berkshire's portfolio.
- New Purchases:
DE
,
PCP
,
WBC
,
MEG
,
- Added Positions:
WFC
,
IBM
,
GM
,
NOV
,
DVA
,
- Reduced Positions:
JNJ
,
GE
,
V
,
UPS
,
- Sold Out:
CVS
,
DG
,
IR
,
For the details of Warren Buffett's stock buys and sells, go to
http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett
This is the sector weightings of his portfolio:
|
Financials
|
35.8% |
|
Consumer Goods
|
27.3% |
|
Technology
|
18.6% |
|
Consumer Services
|
9.5% |
|
Oil & Gas
|
4% |
|
Industrials
|
3.3% |
|
Health Care
|
1.8% |
These are the top 5 holdings of Warren Buffett
- Coca-Cola Co (
KO
) - 400,000,000 shares, 20.1% of the total portfolio.
- Wells Fargo & Co (
WFC
) - 422,549,545 shares, 19.4% of the total portfolio. Shares
added by 2.8%
- International Business Machines Corp (
IBM
) - 67,517,896 shares, 18.6% of the total portfolio. Shares
added by 1.31%
- American Express Co (
AXP
) - 151,610,700 shares, 11.4% of the total portfolio.
- Procter & Gamble Co (
PG
) - 52,793,078 shares, 4.9% of the total portfolio. Shares
reduced by 11.42%
Added: Wells Fargo & Co (
WFC
)
Warren Buffett added to his holdings in Wells Fargo & Co by
2.8%. His purchase prices were between $32.85 and $36.1, with an
estimated average price of $34.06. The impact to his portfolio
due to this purchase was 0.53%. His holdings were 422,549,545
shares as of 09/30/2012. Wells Fargo & Company is a
diversified financial services company providing banking,
insurance, investments, mortgage and consumer finance services
through stores, its Internet site and other distribution channels
across North America as well as internationally. Wells Fargo
& Co has a market cap of $170.85 billion; its shares were
traded at around $31.6 with a P/E ratio of 10.2 and P/S ratio of
2. The dividend yield of Wells Fargo & Co stocks is 2.7%.
Wells Fargo & Co had an annual average earnings growth of
2.2% over the past 10 years.
Warren Buffett keeps buying Wells Fargo every quarter during the
past years. His average cost per share is about $30, which is
close to where it is traded now. This is the holding history of
Warren Buffett with Wells Fargo:
Added: International Business Machines Corp (
IBM
)
Warren Buffett added to his holdings in International Business
Machines Corp by 1.31%. His purchase prices were between $183.09
and $207.31, with an estimated average price of $196.84. The
impact to his portfolio due to this purchase was 0.24%. His
holdings were 67,517,896 shares as of 09/30/2012. IBM is an
information technology (
IT
) company. The company operates in five segments: Global
Technology Services, Global Business Services, Software, Systems
and Technology, and Global Financing. International Business
Machines Corp has a market cap of $216.72 billion; its shares
were traded at around $185.07 with a P/E ratio of 13 and P/S
ratio of 2. The dividend yield of International Business Machines
Corp stocks is 1.8%. International Business Machines Corp had an
annual average earnings growth of 11.8% over the past 10 years.
GuruFocus rated International Business Machines Corp the business
predictability rank of 4.5-star.
This is the holding history of Warren Buffett with IBM:
His average cost per share is about $173. Now the stock is traded
about 7% above Buffett's cost:
Reduced: Johnson & Johnson (
JNJ
)
Warren Buffett reduced to his holdings in Johnson & Johnson
by 95.24%. His sale prices were between $67.21 and $69.55, with
an estimated average price of $68.34. The impact to his portfolio
due to this sale was -0.9%. Warren Buffett still held 492,028
shares as of 09/30/2012. Johnson & Johnson is engaged in the
research and development, manufacture and sale of a range of
products in the healthcare field. Johnson & Johnson has a
market cap of $192.67 billion; its shares were traded at around
$69.1 with a P/E ratio of 13.8 and P/S ratio of 3. The dividend
yield of Johnson & Johnson stocks is 3.5%. Johnson &
Johnson had an annual average earnings growth of 7.2% over the
past 10 years. GuruFocus rated Johnson & Johnson the business
predictability rank of 2.5-star.
Warren Buffett keeps selling Johnson & Johnson (
JNJ
), although he spoke favorably about the company before. This is
the holding history of Buffett with JNJ. He keeps selling, now
Berkshire has only about half a million shares left. At the peak
in 2007, Buffett owned more than 61 million shares.
What is going wrong with JNJ? GuruFocus warning signs do show
that JNJ has shrinking profit margins; its asset growth is also
faster than revenue growth. This is the historical gross margin
of JNJ. It does shown steady decline, which is usually a sign of
losing to competition. At the same time, JNJ is traded at close
to 10-year, although the stock only appreciated 15% over the past
10 years.
Added: Davita Inc (
DVA
)
Berkshire added to his holdings in Davita Inc by 9.65%. His
purchase prices were between $94.8 and $103.61, with an estimated
average price of $98.19. The impact to his portfolio due to this
purchase was 0.12%. His holdings were 10,197,569 shares as of
09/30/2012. DaVita Inc. is one of the largest providers of
high-quality dialysis and related services for patients suffering
from chronic kidney failure, also known as end stage renal
disease. Davita Inc has a market cap of $10.64 billion; its
shares were traded at around $112.32 with a P/E ratio of 18.7 and
P/S ratio of 1.5. Davita Inc had an annual average earnings
growth of 17.8% over the past 10 years. GuruFocus rated Davita
Inc the business predictability rank of 3.5-star.
It is said that Davita is not a Buffett purchase, rather it is
from his lieutenant Ted Weschler. Read Geoff Gannon's Why Ted
Weschler Keeps Buying DaVita (
DVA)
.
Here is the complete portfolio of Warren Buffett. Also check out:
1. Warren Buffett's Undervalued Stocks
2. Warren Buffett's Top Growth Companies, and
3. Warren Buffett's High Yield stocksAbout GuruFocus:
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stock screeners and valuation tools. And publishes daily articles
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.