Stocks to Buy from Warren Buffett’s Portfolio
Last week, I posted Warren Buffett’s most recent portfolio. This week, I did some analysis to gage his cost basis for each of his holdings so I could figure out how much gain he is sitting on for each of these holdings as of right now. If you look at the table below, it is obvious that Buffett hardly ever owns a stock for less than a triple digit gain. So for investors who don’t want to do their homework and want to shadow his moves somewhat, I have highlighted the ones that are recent additions to his portfolio that have not appreciated as much as much. What this means is that these stocks will probably do well over the next 3-5 years and could may well be his AXP, KO and PG. Do you think one of these is more attractive than the others? I’d love to hear from you.
– Faisal Laljee
Hi Faisal,
Great blog and excellent content. I just had one comment on your observations, I notice that stocks highligted by you in Buffet’s portfolio are also very small percent of the respective companies. Also his maximum gains are in companies where he has huge stakes. Does it indicate that more he belives in the company more stake he has? What is your take on this?
-Ishtmeet
Ishtmeet – You are right in that his max gains are in companies he has huge stakes in. Usually, he builds up his stake over a period of time. The new names he had recently invested in are COP, JNJ, USB, PKX and TESOF. If you notice, those are stocks that he owns less of. I believe you will see these holdings rise over the next year or two unless his stance on the company changes – an unlikely proposition. This is why I have highlighted COP and JNJ. Meanwhile, USG is a company that emerged from Bankruptcy last summer and Buffett bought a huge stake right away. Considering how much the stock has dropped from recent highs of $58, I believe it is a screaming buy here. He owns 19% of this company and the gains have not been that outstanding.
– Faisal Laljee