Friday, August 22, 2014

What Warren Buffet Has Been Buying

Warren Buffett's Berkshire Hathaway (BRK-A) has been in the news recently because of the fine levied by the Justice Department for not following anti-trust guidelines. However, Buffett is still providing investors with significant returns. Berkshire Hathaway closed at $205,159 per share yesterday, an all time closing high for the stock.

One technique that some investors use is "follow the experts," basically, follow what the top investors are doing. Applying that technique to Warren Buffett and Berkshire Hathaway is easy. has a free list of Berkshire Hathaway holdings, so you can just pick and choose the stocks that you think are the best of Warren Buffett's holdings.

A better technique is to take a close look at the stocks that the experts have recently purchased. In the case of Buffett, he has only two new investments during the latest reported quarter ending June 30.

One of his purchases was Charter Communications (CHTR), the Stamford, Connecticut based cable television provider. The stock trades at 58 times forward earnings and although generating negative earnings currently, it posted a 14.6% increase in revenues for the latest quarter, year over year.

The new investment in Buffett's portfolio is Now Inc. (DNOW). The company distributes pipes and valves to utilities, refineries, and oil and gas operators. This isn't a new purchase as it was a spinoff from National Oilwell Varco (NOV), which Buffett already has in his portfolio. Now trades at 19 times forward earnings, and has reported a drop in quarterly earning of 18.2% on a revenue decrease of 11%. The company is debt free with $236 million in cash.

At the very least, Buffett's portfolio can provide you with some investment ideas worth looking into.

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


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