Sunday, February 20, 2011

Warren Buffett's Berkshire Hathaway Dumps Nike, B of A, and Comcast

Berkshire Hathaway (BRK-A) (BRK-B), the company run by billionaire Warren Buffett, has decided to to eliminate a couple of high profile names from its portfolio, including Nike (NKE), Bank of America (BAC), and Comcast (CMCSK). Buffett also got rid of Lowes (LOW), Becton Dickinson, (BDX), Nalco Holding (NLC), and Fiserv (FISV).

Also, he sold off all 3.4 million shares of Nestle (NSRGY.PK). After all, Berkshire Hathaway doesn't need it since it owns See's Candies. If you've never tried See's, you need to try the candy once if you get to the western United States. (Berkshire owns the entire See's company so you can't buy stock in it. You will just have to buy Berkshire shares if you want a piece of that candy.)

In case you think Buffett is soured on the market, since he eliminated eight of his positions, he has made a couple purchases, adding to positions of existing holdings.

Buffett bought 6.2 million additional shares of Wells Fargo (WFC), and is currently Berkshire's second largest holding. Wells trades at 9.3 times forward earnings and pays a yield of 0.6%. Earnings for the latest quarter were up 20.9% year over year.

The third largest holding of Berkshire is American Express (AXP). Buffett increased his holdings in this large financial institution by a whopping 149.6 million shares. American Express has a forward price to earnings ratio of 11.2 and sports a yield of 1.6%. Earnings for the latest quarter were up 48.3% versus the same quarter last year.

To see a free list of all the latest holdings of Buffett's Berkshire Hathaway, which can be downloaded, sorted, and updated, go to The stocks on this list have yields ranging up to 6.4%.

Disclosure: Author didn't own any of the above stocks at the time the article was written.


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