With the recent release of Berkshire Hathaway (BRK.A)(BRK.B)'s
called his company's 2012 performance "subpar" despite growing
book value $24.1 billion with a portfolio of 41 stocks valued at
In his most recent shareholder letter, Buffett said that
Berkshire's ownership interest in all four companies (American
), Coca-Cola (
), IBM (
) and Wells Fargo (
)) is likely to increase in the future. At yearend, they have a
total unrealized gain of $26.7 billion. Berkshire received $1.1
billion of dividends from those shares. Read the complete
With a prevailing interest in DaVita Healthcare Partner (
), Berkshire's 2013 buying behavior seems to say this expanding
health care provider of kidney-dialysis services is poised for
growth in the U.S. and Europe. With the recent string of DVA adds
to the Berkshire Hathaway portfolio - as of Feb. 27, 2013, its
current DVA shares are 14,808,959. For Buffett's top buys, top
sales, and top holdings, take a look:
Here's a review of the top four companies mentioned in Buffett's
shareholder letter: WFC, KO, IBM and AXP.
Buffett's Number one holding is currently Wells Fargo & Co. (
), with a portfolio weighting of 20%, and 439,857,861 shares.
The massive bank Wells Fargo & Company serves one out of
three households in the U.S., and in 35 countries. Buffett has
commented on the excellent management of his favorite bank, Wells
Fargo, ranked fourth in assets, but first in market value of its
common stock of all U.S. banks. Considered one of the fastest
recovering banks after the industry implosion, Wells Fargo
management was responsible for turning the bank around several
years ago. In the past, Buffett has cited the bank's low-cost of
funding, a powerful advantage in lending. Wells Fargo &
Company is a corporation organized under the laws of Delaware and
a financial holding company and a bank holding company registered
under the Bank Holding Company Act of 1956, as amended. Wells
Fargo & Co. has a market cap of $187.38 billion; its shares
were traded at around $35.55 with a P/E ratio of 10.6 and P/S
ratio of 2.2. The dividend yield of Wells Fargo & Co. stocks
is 2.6%. Wells Fargo & Co. has had an annual average earnings
growth of 1.5% over the past 10 years.
Buffett commented in a previous annual letter, "The banking
industry is back on its feet, and Wells Fargo is prospering. Its
earnings are strong, its assets solid and its capital at record
Warren Buffett's Wells Fargo holdings:
Warren Buffett's Number two holding is Coca-Cola Co. (
), with a portfolio weighting of 19.3%, for 400,000,000 shares.
A world-wide brand, the Coca-Cola Company (
), is known for its carbonated beverages as well as products like
tea and juice. Approximately 75% of the company's revenue is
generated outside the U.S. The famous beverage is well known in
almost every country in the world, including Africa.
Considered a very healthy company with consistent growth,
Coca-Cola Co. had an annual average earnings growth of 9.6% over
the past 10 years. Coca-Cola has a market cap of $172.16 billion;
its shares were traded at around $38.63 with a P/E ratio of 19.6
and P/S ratio of 3.7. The dividend yield of Coca-Cola stocks is
2.6%. GuruFocus rated Coca-Cola with the business predictability
rank of 5-star. Calling himself late to the party, Buffett has
commented on the longevity of the Coke brand, which he bought in
1988 along with Freddie Mac. Buffett said of his new purchases at
"In 1988 we made major purchases of Federal Home Loan Mortgage
Pfd. ("Freddie Mac") and Coca Cola. We expect to hold these
securities for a long time. In fact, when we own portions of
outstanding businesses with outstanding managements, our favorite
holding period is forever. We are just the opposite of those who
hurry to sell and book profits when companies perform well but
who tenaciously hang on to businesses that disappoint. Peter
Lynch aptly likens such behavior to cutting the flowers and
watering the weeds."
Warren Buffet Coca-Cola holdings:
Buffett's Number three holding is currently International
Business Machines Corp. (
), with a portfolio weighting of 17.3%, for 68,115,484 shares.
Buffett has praised IBM leadership for rescuing IBM from the
brink of bankruptcy 20 years ago and making it into a successful
business today. In last year's annual letter, he cited IBM
management's extraordinary operational accomplishments, saying,
"Their financial management was equally brilliant, particularly
in recent years as the company's financial flexibility improved.
Indeed, I can think of no major company that has had better
financial management, a skill that has materially increased the
gains enjoyed by IBM shareholders."
International Business Machines Corporation was incorporated in
the State of New York on June 16, 1911, as the
Computing-Tabulating-Recording Co. International Business
Machines Corp has a market cap of $227.92 billion; its shares
were traded at around $204.5 with a P/E ratio of 14.1 and P/S
ratio of 2.2. The dividend yield of International Business
Machines Corp stocks is 1.7%. International Business Machines
Corp had an annual average earnings growth of 12.1% over the past
10 years. GuruFocus rated International Business Machines Corp.
with the business predictability rank of 5-star.
Warren Buffet IBM holdings:
Buffett's Number four holding is currently American Express Co. (
), with a portfolio weighting of 11.6%, and 151,610,700 shares.
Another Buffett favorite is American Express Company (
). To create an entire value chain, American Express segmented
its credit card and lending business into three businesses: U.S.
card services, international card and global commercial services,
and global network and merchant services. As owner of the entire
value chain, AXP has created a profitable niche for itself in the
financial service markets, offering a great potential for
profits. With a closed looped of its own related products and
services and marketing, AXP pricing has a built-in competitive
American Express Co. was founded in 1850 as a joint stock
association and was incorporated in 1965 as a New York
corporation. American Express Co. has a market cap of $69.06
billion; its shares were traded at around $62.5 with a P/E ratio
of 16 and P/S ratio of 2.3. The dividend yield of American
Express Co. stocks is 1.3%. American Express Co. had an annual
average earnings growth of 5% over the past 10 years. GuruFocus
rated American Express Co. with the business predictability rank
Berkshire is drawn to the fair value computation of AXP, an
undervalued stock with room to grown, as well as the dividend.
AXP is an opportunity for investors and, according to Buffett's
recent shareholder letter, he may be adding more shares in the
Warren Buffett American Express Co. holdings:
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 stocks
4. Stocks that Warren Buffett keeps buyingAbout GuruFocus:
GuruFocus.com tracks the stocks picks and portfolio holdings of
the world's best investors. This value investing site offers
stock screeners and valuation tools. And publishes daily articles
tracking the latest moves of the world's best investors.
GuruFocus also provides promising stock ideas in 3 monthly
newsletters sent to