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The following is a list of top ten holdings by Warren Buffett:

Stock

Symbol

Shares Held - 06/30/2011

% of Portfolio

Change in shares vs. last quarter

The Coca-Cola Company

KO

200,000,000

25.7

0

Wells Fargo & Company

WFC

352,327,608

18.88

9,703,683

American Express Company

AXP

151,610,700

14.97

0

Procter & Gamble Co.

PG

76,766,036

9.32

0

Kraft Foods Inc.

KFT

99,467,624

6.69

-5,746,960

Johnson & Johnson

JNJ

42,624,563

5.42

0

ConocoPhillips

COP

29,101,637

4.18

0

Wal-Mart Stores Inc.

WMT

39,037,142

3.96

0

U.S. Bancorp

USB

69,039,426

3.36

0

Moody's Corp.

MCO

28,415,250

2.08

0

Source: 13F filing

My favourite long candidate among above stocks is American Express Company (NYSE:AXP). I believe American Express is a very good investment for long term as it will continue to benefit from the secular shift in spending from paper to plastic globally for next several years.

In the short to medium term, although there are a lot of concerns about a double dip recession, I believe American Express is much better positioned this time around as compared to the 2008 recession. Some of the factors which makes American Express more resilient this time are fewer lower tenure customers (10% of the portfolio vs 32% in Q2’08), more transactors in the portfolio (32% currently vs 16% in Q2’08) and better quality, given greater focus on premium.

So far American Express’ business is not seeing much impact of a slowdown. During a recent webcast presentation, CFO Dan Henry stated that overall Q3 QTD billed business (spend) is holding up very well despite an impact from Hurricane Irene and a dip in European growth. Also, Credit improvement continued in August and delinquency / chargeoff rates declined slightly from July. Amex’s managed card lending chargeoff rate in August was 2.7% vs 2.8% in July, and Managed card lending delinquency rate was 1.4% in August, compared to 1.5% in July.

For other stocks in the above list, here are some of the specifics, including a brief description of their businesses and growth expectations (top line and bottom line):

The Coca-Cola Company (NYSE:KO) is a non-alcoholic beverage company. The Company owns or licenses and markets more than 500 non-alcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. It also owns and markets non-alcoholic sparkling beverage brands, including Diet Coke, Fanta and Sprite. Coca-Cola's EPS forecast for the current year is $3.87 and next year is $4.29. According to consensus estimates, its top line is expected to grow 32.60% in the current year and 5.00% next year.

Wells Fargo & Company is a diversified financial services company. The Company provides banking, insurance, investments, mortgage banking, investment banking, retail banking, brokerage, and consumer finance through banking stores, the Internet and other distribution channels to consumers, businesses and institutions in 50 states, the District of Columbia, and in other countries. The Company operates in three segments: Community Banking, Wholesale Banking, and Wealth, Brokerage and Retirement. Wells' EPS forecast for the current year is $2.81 and next year is $3.36. According to consensus estimates, its top line is expected to decline 4.60% in the current year and grow 1.10% next year.

The Procter & Gamble Company (NYSE:PG) is focused on providing consumer packaged goods. The Company’s products are sold in more than 180 countries primarily through mass merchandisers, grocery stores, membership club stores, drug stores and high-frequency stores, the neighborhood stores, which serve many consumers in developing markets. It has on-the-ground operations in approximately 80 countries. Procter & Gamble's EPS forecast for the current year is $4.23 and next year is $4.61. According to consensus estimates, its top line is expected to grow 6.30% in the current year and 4.50% next year.

Kraft Foods Inc. (KFT) manufactures and markets packaged food products, including biscuits, confectionery, beverages, cheese, convenient meals and various packaged grocery products. The Company sells its products to consumers in approximately 170 countries. Kraft's EPS forecast for the current year is $2.27 and next year is $2.52. According to consensus estimates, its top line is expected to grow 10.00% in the current year and 4.00% next year.

Johnson & Johnson (NYSE:JNJ) and its subsidiaries are engaged in the research and development, manufacture and sale of a range of products in the health care field. It has more than 250 operating companies conducting business worldwide. The Company’s operating companies are organized into three business segments: Consumer, Pharmaceutical and Medical Devices and Diagnostics. Johnson & Johnson's EPS forecast for the current year is $4.97 and next year is $5.29. According to consensus estimates, its top line is expected to grow 6.20% in the current year and 4.70% next year.

ConocoPhillips (NYSE:COP) is an international, integrated energy company. The Company operates in six segments: Exploration and Production, Midstream, Refining and Marketing, LUKOIL Investment, Chemicals and Emerging Businesses. ConocoPhillips' EPS forecast for the current year is $8.32 and next year is $8.86. According to consensus estimates, its top line is expected to grow 25.10% in the current year and 1.00% next year.

Wal-Mart Stores, Inc. (NYSE:WMT) operates retail stores. The Company operates in three business segments: Wal-Mart U.S., Wal-Mart International and Sam’s Club. Wal-Mart's EPS forecast for the current year is $4.48 and next year is $4.89. According to consensus estimates, its top line is expected to grow 5.10% in the current year and 4.70% next year.

U.S. Bancorp (NYSE:USB) is a multi-state financial services holding company. U.S. Bancorp provides a range of financial services, including lending and depository services, cash management, foreign exchange and trust and investment management services. The Company also engages in credit card services, merchant and automated teller machine processing, mortgage banking, insurance, brokerage and leasing. U.S. Bancorp's EPS forecast for the current year is $2.32 and next year is $2.61. According to consensus estimates, its top line is expected to grow 2.10% in the current year and 3.30% next year.

Moody’s Corporation (NYSE:MCO) is a provider of credit ratings; credit and economic related research, data and analytical tools, risk management software and quantitative credit risk measures, credit portfolio management solutions, training and financial credentialing and certification services. Moody’s operates in two segments: Moody’s Investors Service and Moody’s Analytics. Moody’s EPS forecast for the current year is $2.45 and next year is $2.64. According to consensus estimates, its top line is expected to grow 14.30% in the current year and 6.80% next year.

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

Source: Focus On Warren Buffett's Top 10 Holdings