Peek-a-boo: Warren Buffett’s current portfolio

BuffettTop holdings of Berkshire Hathaway reflects that same ‘very Buffetty’ strategy of Mr. Buffett’s investing. The portfolio of shares are ‘ the old horses capable of running till eternity’. After looking at the holdings of BRK at first instance one can say that the biggest investor of all time is inclined more towards the old big giants than the young starters. Here is the list of his top 10 holdings:

NAME % of PORTFOLIO

P/E RATIO

ROE

COCACOLA COMPANY 24.75% 12.65 42.33%
WELLS FARGO & CO.

20.27%

10.46 10.97%
AMERICAN EXPRESS COMPANY 12.78% 13.40 28.14%
PROCTER & GAMBLE COMPANY 8.82% 17.09 17.10%
KRAFT FOODS INC. 6.16% 19.76 8.47%
JOHNSON & JOHNSON 4.71% 15 21.79%
CONOCOPHILLIPS 4.34% 8.59 18.44%
WESCO FINANCIAL
Corp.
4.14% 425.19 0.24%
WALMART STORES
INC.
3.79% 11.73 23.44%
U.S. BANCORP 3.40% 12.55 12.37%
 

All the companies have few things common in them:

  • These companies have shown consistently good ROE (Return on Equity) in past few years.
  • All of them have decent P/E ratio.
  • All the companies are big players which are spread across wide areas of economy. This makes them more stable and consistent.
  • All of them are low debt companies.
  • All the companies are better performers than their peers.

This portfolio is an example of immaculate stock picking sense of Mr. Buffett. Coca Cola has long been the best ever investment of Mr. Buffett and he still believes this company will be the most stable and consistent performer in future. Wells Fargo was least affected by the crisis in 2008 when all its peer went down like anything. Wells Fargo remains one of the best banking and financial services company of US.

American Express has been growing consistently over the years. Meanwhile, Mastercard may be the newest investment of the Berkshire Hathaway. Company has been growing faster than VISA and has a decent P/E ratio. Other than a down year in 2008, its consistent Return on Equity of 20-50% in the last few years is comparably higher to VISA which ranges anywhere from 7% – 12%. MasterCard’s current P/E ratio of 19.29 is also above VISA’s 17.55.

Warren Buffett’s way of investing has worked in any and every situation, even in the most disastrous downturn we have ever seen.

Hitesh Anand

I am a post graduate from Newcastle University, UK. I like studying and analyzing economic data and financial health of world.

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