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.
Had Buffett added equal dollar amounts into each stock on this list, his return would be 24.5% during the last 12 months. (See Buffett's portfolio here).
1. Coca Cola (KO): The Coca-Cola Company provides nonalcoholic beverage concentrates and syrups worldwide. KO gained 31.1% during the past 12 months. The stock has a 2.7% dividend yield and P/E ratio of 13.4. Buffett had $13.3 billion invested in KO shares. 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 $159.6 billion. Coca Cola recently traded at $69.73 and Buffett's stake in the company is 8.7%. Buffett made more than $7 billion with his Coca Cola investment.
On July 19, 2011, Coca Cola reported second quarter financial results. Second quarter reported EPS was $1.20, up 18%, with comparable EPS at $1.17. On July 21, 2011, The Coca-Cola Company announced a regular quarterly dividend of 47 cents per common share.
2. Wells Fargo & Co. (WFC): Wells Fargo & Company provides retail, commercial, and corporate banking services primarily in the United States. WFC recently traded at $29.14 and has a 1.6% dividend yield. WFC gained 7.3% during the past 12 months. The stock has a market cap of $154 billion and P/E ratio of 12. 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).
3. American Express Co. (AXP): American Express Company provides charge and credit payment card products, and travel-related services worldwide. AXP recently traded at $52.24 and has a 1.4% dividend yield. AXP gained 18.6% during the past 12 months. The stock has a market cap of $62.8 billion and P/E ratio of 14.55. Buffett had $6.85 billion invested in AXP shares. One of the long term investments of Tom Gayner's Markel is American Express. In the last 18 years, AXP has gained 717% vs. SPY’s gain of 312%.
4. Procter & Gamble Co. (PG): The Procter & Gamble Company provides consumer packaged goods worldwide. PG recently traded at $64.25 and has a 3.3% dividend yield. PG gained 7.1% during the past 12 months. The stock has a market cap of $179.3 billion and P/E ratio of 16.93. Buffett had $4.73 billion invested in PG shares.
5. Kraft Foods Inc. (KFT): Kraft Foods provides snacks, confectionery, and quick meal products worldwide. KFT recently traded at $35.43 and has a 3.3% dividend yield. KFT gained 24% during the past 12 months. The stock has a market cap of $62.3 billion and P/E ratio of 20.5. Buffett had $3.3 billion invested in KFT shares.
6. Johnson & Johnson (JNJ): Johnson & Johnson provides various products in the health care field worldwide. JNJ recently traded at $66.72 and has a 3.4% dividend yield. JNJ gained 20% during the past 12 months. The stock has a market cap of $182.9 billion and P/E ratio of 16. Hedge funds had $4.7 Billion in JNJ at the end of March. Warren Buffett is the largest holder with a $2.5 Billion position. JNJ is one of the most popular stocks among hedge funds (See the complete list of 10 Most Popular Stocks Among Hedge Funds here).
7. Conoco Phillips (COP): ConocoPhillips is an integrated energy company operating worldwide. COP recently traded at $75.26 and has a 3.5% dividend yield. COP gained 46.5% during the past 12 months. The stock has a market cap of $106 billion and P/E ratio of 9. Buffett had $2.3 billion invested in COP shares.
8. Wal-Mart Stores, Inc. (WMT): Wal-Mart Stores operates retail stores worldwide. WMT recently traded at $54.52 and has a 2.7% dividend yield. WMT gained 8.2% during the past 12 months. The stock has a market cap of $189 billion and P/E ratio of 11.9. Buffett had $2 billion invested in WMT shares.
9. US Bancorp (USB): U.S. Bancorp is a financial services holding company in the United States. USB recently traded at $26.91 and has a 1.9% dividend yield. USB gained 15.1% during the past 12 months. The stock has a market cap of $51.8 billion and P/E ratio of 14.1. Buffett had $1.8 billion invested in USB shares.
10. Moodys Corp (MCO): Moodys Corporation provides credit ratings and related research services worldwide. MCO recently traded at $37.17 and has a 1.5% dividend yield. MCO gained 67% during the past 12 months. The stock has a market cap of $8.47 billion and P/E ratio of 15.82. Buffett had $964 million invested in MCO shares. David Einhorn has been shorting MCO during the past several years. On the other hand, Jeffrey Ubben, another value investor, is very bullish about MCO with a $280 Million position.