Monday, March 10, 2014

Warren Buffett's Top 3 Stocks

The head of Berkshire Hathaway (BRK-A), Warren Buffett, is one of the three richest men in the world, in competition on a regular basis with Bill Gates and Carlos Slim. Buffett made his wealth the old fashion way, from investing. He has had a stellar long term performance with his investment portfolio, that many investors try to emulate.

Berkshire Hathaway currently has over 40 stocks in its portfolio, according to the free list of Warren Buffett stocks at One way to tell what stocks Buffett likes best in his portfolio is to look at his largest holdings.

Buffett has investedover $20 billion in Wells Fargo (WFC), making up 20% of the Berkshire portfolio.  Wells trades at 12 times trailing earnings, and 11 times forward earnings. Net earnings for the latest quarter rose 10.2% on a 0.9% rise in revenues. The stock pays a yield of 2.5%, a lot more than what they pay on their savings accounts.

Buffett's second largest holding is Coca Cola (KO), with $16.5 billion invested at 15.7% of the portfolio. Coke trades at 20 times earnings with a forward price to earnings ratio of 17. Earnings dropped for the latest quarter, down 8.4%. The company has a dividend payout rate of 3.2%.

In third place is American Express (AXP). This credit card and travel company has a PE of 19, and forward PE of 15. Earnings for the latest quarter jumped by an amazing 105%, on a 6.9% revenue increase.The yield is 1.0%.

For a list of all the other Warren Buffett stocks, which includes PE ratios and yields, go to

Disclosure: Author did not own any of the above at the time the article was written.


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