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Warren Buffett

Warren Buffett's 10 favorite stocks

Eric McWhinnie
Wall St. Cheat Sheet
  • CEO and largest shareholder of Berkshire Hathaway%2C Warren Buffett is famed investor
  • In most recent quarter%2C Buffett%27s firm raised its stake in Suncor Energy and Verisign
  • Berkshire Hathaway%27s biggest stakes remain in well-known%2C established companies

Warren Buffett is one of the most successful investors in history. The chief executive officer and largest shareholder of Berkshire Hathaway (BRKA) has navigated numerous bull and bear markets, becoming a multibillionaire in the process. As a result, he is also one of the most closely followed investors. Courtesy of a new filing, individual investors have a peek at how Buffett is investing.

Warren Buffett during a television interview in Omaha, Neb., on May 6.

Many institutional investment managers recently filed their mandatory 13-F with the Securities & Exchange Commission. The filing is a quarterly report of equity holdings required by managers that oversee more than $100 million in qualifying assets and must be filed within 45 days of the end of each quarter. The 13-F provides a glance at what hedge funds did in the previous quarter, but investors should keep in mind that hedging and trading strategies of each fund are still unknown.

The Oracle of Omaha is best known as a value investor who takes large positions in well-established companies, waiting for Mr. Market to value them properly. His recent filing with the SEC reaffirms that image. Berkshire Hathaway raised its stake in Suncor Energy (SU) and Verisign (VRSN), but its biggest investments include some of the most popular blue chips known to Wall Street. Here's a look at Berkshire's top 10 stocks, according to dollar value at the end of September.

10. Goldman Sachs (GS)
Year-to-date performance: 28%
Berkshire did not show a position in Goldman Sachs on the 13-F, but the firm has more than 13 million shares worth about $2.1 billion. Berkshire acquired the shares through warrants from a well-timed investment during the financial meltdown five years ago.

9. DIRECTV (DTV)
Year-to-date performance: 28%
Berkshire held 36.5 million shares of the satellite provider at the end of the third-quarter, worth almost $2.2 billion. In comparison, Berkshire held about 37.3 million shares at the end of the second-quarter.

8. U.S. Bancorp (USB)
Year-to-date performance: 20%
The Minnesota-based bank continues to be a favorite of Buffett's as Berkshire increased its stake slightly to 79.1 million shares during the third-quarter, worth nearly $2.9 billion.

7. Exxon Mobil (OXM)
Year-to-date performance: 8%
The world's largest publicly traded oil company was a new position for Berkshire. At the end of September, the firm held 40.1 million shares, worth $3.4 billion. This is the first time Buffett has held Exxon Mobil since 2011. Interestingly, Berkshire reduced its stake in ConocoPhillips (COP) by about 10.6 million shares during the third quarter.

6. Wal-Mart (WMT)
Year-to-date performance: 16%
Berkshire held 49.2 million shares of the world's largest retailer at the end of the third-quarter, worth $3.6 billion.

5. Procter & Gamble (PG)
Year-to-date performance: 24%
During the third quarter, Berkshire kept its stake in the Ohio-based company at 52.8 million shares, worth almost $4 billion.

4. American Express (AXP)
Year-to-date performance: 42%
Berkshire held 151.6 million shares of the credit card giant at the end of the third-quarter, worth $11.4 billion.

3. International Business Machines (IBM)
Year-to-date performance: --5%
The information technology company is the most influential blue chip in the Dow Jones Industrial Average, and one of Buffett's biggest holdings. Berkshire held 68.1 million shares of IBM at the end of the third-quarter, worth $12.6 billion.

2. Coca-Cola (KO)
Year-to-date performance: 11%
Berkshire held 400 million shares of the world renowned beverage company at the end of the third-quarter, worth $15.2 billion.

1. Wells Fargo (WFC)
Year-to-date performance: 26%
The nation's largest bank by market capitalization is also Buffett's top holding. Berkshire held 463.1 million shares of Wells Fargo at the end of the third-quarter, worth $19.1 billion.

Wall St. Cheat Sheet is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

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