7 Stocks Warren Buffett Owns That Are Worth Considering For Your Portfolio

in INVESTING IDEAS by

Berkshire Hathaway released its quarterly 13F filing with the SEC on May 15th. After recent market losses, these are the stocks in the fund’s portfolio worth considering now.


Berkshire Hathaway’s Recent Price Pull-Back Stocks

To find stocks in the firm’s portfolio that may be unpopular at the moment and trading at cheap valuations, I ranked the firm’s holdings by price pullbacks. The ranking table below lists the stocks in Berkshire Hathaway’s portfolio by stock price performance over the last 30 days.

Berkshire Hathaway Recent Price Pull-Back Stocks
Ticker Name Price 1-mo Ago Current Price % Change 1-mo
MTB M & T BK CORP $184.78 $175.78 -4.9%
GS GOLDMAN SACHS GROUP INC $242.07 $234.09 -3.3%
JNJ JOHNSON & JOHNSON $126.30 $122.66 -2.9%
LUV SOUTHWEST AIRLS CO $52.30 $50.98 -2.5%
BAC BANK AMER CORP $30.79 $30.06 -2.4%
AXP AMERICAN EXPRESS CO $101.42 $101.20 -0.2%
USB US BANCORP DEL $51.50 $51.45 -0.1%

M&T Bank Corporation (NYSE: MTB) stock price has fallen by -4.9% over the last month. It may be worth taking a closer look at the stock, especially after this recent decline.

The next largest stock decline in Warren Buffett’s portfolio is Goldman Sachs Group, Inc(NYSE: GS) which has seen its share price fall by -3.3% over the last month. Other notable holdings with a recent pull-back include Johnson & Johnson (NYSE: JNJ), Southwest Airlines Company (NYSE: LUV), Bank of America Corporation (NYSE: BAC), American Express Company(NYSE: AXP) and U.S. Bancorp (NYSE: USB).


Final Thoughts

There are several benefits of mimicking Berkshire Hathaway holdings. Historically, Buffett has very low portfolio turnover – so he only invests when he feels a high degree of conviction in management’s ability to deliver on stated objectives. Furthermore, if one of his investments hits a hiccup, he can deploy Berkshire’s multi-billion cash war chest.

If things go really wrong, he is not shy about leveraging his stellar reputation to work through the problems. (See Solomon BrothersBank of Americaother scandals).

What is also interesting to note is that Buffett’s approach to investing has yielded Berkshire Hathaway 20%-plus annualized returns since 1965. Warren Buffett’s prolific career has received its fair share of media attention over the years, but this recent HBO documentary is one of my favorites.

As of this writing, I did not hold a position in any of the aforementioned securities and this is not a buy or sell recommendation on any security mentioned.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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