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Lately, it has been very hard to find stocks that perform well. Two stocks, McDonald's (NYSE:MCD) and Coca-Cola (NYSE:KO), caught my eye. MCD and KO are up 15.21% and 15.89% for the year respectively vs. nearly flat for the S&P 500. I know 15% annually is not the best, but in these markets, that is better than nothing.

Interestingly, KO was Warren Buffett’s top holding as of July 30, at 25.7% of his portfolio. MCD is owned by many funds. Both companies have a strong brand and are likely to keep their dominance in their respective spaces. Further, they may be strong enough to weather an economic downturn. It seems like investors are flocking to safety in well-known brands.

Are there any other stocks Warren Buffett owns that may do well? I would stay away from Wells Fargo (NYSE:WFC) and American Express (NYSE:AXP), Buffett’s 2nd and 3rd largest holdings. Financials will likely seesaw with the global debt situation. WFC is one of the better banks, but the European debt crisis will hurt the global financial system. AXP has held up better than WFC, but both are destined to fall.

Procter & Gamble (NYSE:PG) is Buffett’s 4th largest holding. Surprisingly, PG is nearly flat for the year. This is also true for Johnson & Johnson (NYSE:JNJ), Buffett’s 6th largest holding. Both of these may rise as investors flock to strong brand names. As for Kraft Foods (KFT), Buffett’s 5th largest holdings, it is up a little more than 7% for the year. KFT should grow slowly but nicely. After all, we still need to eat even as the economy sours.

Trailing PE

Forward PE

Price/Sales

PEG

Gross Margin

Dividend

MCD

17.60

15.19

3.47

1.71

39.74%

2.80%

KO

12.46

15.61

3.69

2.24

61.76%

2.70%

WFC

9.08

6.99

1.69

0.70

--

2.00%

AXP

11.96

11.10

1.99

1.04

77.07%

1.50%

PG

15.49

13.20

2.04

1.59

50.62%

3.30%

JNJ

14.66

11.59

2.68

2.28

69.25%

3.60%

KFT

19.23

13.32

1.14

1.54

35.76%

3.40%

From the chart, PG, KFT, and MCD look best based on PEG and dividends. KO and JNJ have impressive gross margins.

Source: A Look At Warren Buffett's Largest Holdings