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.