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Warren Buffett is one of the top investors of the past century. His every move is closely followed by investors and mainstream media. Unfortunately, he doesn't trade very often. When he buys stocks, he holds them for years. So investors who are worried about short term returns can't really gather much intelligence from Buffett's holdings.

Everybody knows that if they had invested $1000 with Warren Buffett back in the day, they would have been a zillionaire today. We can't go back in time and invest in Warren Buffett's investment vehicle, Berkshire Hathaway (BRK.A) stock, but we can invest today. The time will show us if Buffett will continue to his extreme track record.

Warren Buffett says “our favorite holding period is forever” and yet he sold eight stocks during the fourth quarter of 2010. It was surprising that Berkshire hadn’t made any new purchases during the fourth quarter of 2010. In the first quarter of 2011, he had not sold any stocks and bought $54 million worth of Mastercard Inc. (MA) shares.

The table below shows the performance of Buffett's 13F portfolio in the last three months. (See Buffet's top holdings here).

Stock

Value

Return

(Millions)

Since Mar 31,2011

Coca Cola (KO)

13,268

-0.99%

Wells Fargo & Co. Del (WFC)

10,865

-13.08%

American Express Co. (AXP)

6,853

10.04%

Procter & Gamble Co. (PG)

4,729

2.83%

Kraft Foods Inc. (KFT)

3,300

10.01%

Johnson & Johnson (JNJ)

2,526

11.08%

Conoco Phillips (COP)

2,324

-9.30%

Wesco Finl Corp. (WSC)

2,220

-1.10%

Wal-Mart Stores, Inc. (WMT)

2,032

1.12%

US Bancorp (USB)

1,825

-7.04%

Moody's (MCO)

964

9.97%

Washington Post Co. (WPO)

756

-4.85%

M & T Bank Corporation (MTB)

475

-1.19%

Costco Wholesale Corp. (COST)

318

9.22%

USG Corporation (USG)

284

-14.65%

Torchmark Corp. (TMK)

188

-5.22%

General Electric Co. (GE)

156

-8.09%

Sanofi Aventis (SNY)

143

12.08%

United Parcel Service Inc. (UPS)

106

-3.20%

GlaxoSmithKline (GSK)

58

8.51%

Mastercard Inc. (MA)

54

8.36%

Bank of New York Mellon Corp. (BK)

54

-17.09%

Exxon Mobil Corp. (XOM)

35

-6.86%

Ingersoll-Rd Company LTD. (IR)

31

-9.65%

Gannett Inc. (GCI)

27

-9.74%

Comdisco Holding Co. (OTCQB:CDCO)

14

NA

Value Weighted
Return

53,602

-0.83%

(SPY)

N/A

-3.03%

Warren Buffett’s stock portfolio lost 0.8% since the end of first quarter. However, this is better than the S&P 500’s performance. Warren Buffett’s stock picks are very conservative and perform better than S&P 500 index in down markets. Conservative investors who would like to outperform the market by a few percentage points should seriously consider Warren Buffett’s top stock picks for their portfolio.

Coca Cola was Buffett's biggest investment at the end of March 2011. Buffett had $13.3 billion invested in KO at the end of March. Buffett made his first investment in Coca-Cola in 1988 by buying 6.2% of the company. Between 1988 and 2011, the market cap of Coca Cola rose from $18 billion to $149.3 billion. Coca Cola recently traded at $65.21 and Buffett's stake in the company is 8.7%. Buffett made more than $7 billion with his Coca Cola investment. Coca Cola gained 12% in the fourth quarter and has lost 1% since the end of March. The stock has a P/E ratio of 12.6 and dividend yield of 2.9%.

Wells Fargo recently traded at $27.45 and has a 1.7% dividend yield. WFC has lost 13.1% since the end of March, underperforming the SPY by a large margin. The stock has a market cap of $145 billion and P/E ratio of 11.3. Buffett had $10.9 billion invested in WFC shares. John Paulson also had $650 million invested in Wells Fargo (See John Paulson’s top stock picks here).

American Express recently traded at $49.82 and has a 1.5% dividend yield. AXP has gained 10% since the end of March, outperforming the SPY by 13 percentage points. The stock has a market cap of $60 billion and P/E ratio of 13.9. Buffett had $6.9 billion invested in AXP shares. According to Thomson Reuters, American Express' American Express Credit Corp sold senior unsecured floating-rate notes worth $600 million two weeks ago. One of the long term investments of Tom Gayner's Markel is American Express (AXP). In the last 18 years, AXP has gained 838% vs. SPY’s gain of 312%.

Procter & Gamble recently traded at $62.7 and has a 3.3% dividend yield. PG has gained 2.8% since the end of March, outperforming the SPY by 5.8 percentage points. The stock has a market cap of $175 billion and P/E ratio of 16.5. Buffett had $4.7 billion invested in PG shares. Phill Gross And Robert Atchinson's Adage Capital Management and Ken Fisher's Fisher Asset Management are other high profile PG investors.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Warren Buffett's Favorite Holdings and Recent Portfolio Performance