Three Iconic American Companies with Warren Buffett’s Stamp of Approval

Escrito 18 Sep 14


Three Iconic American Companies with Warren Buffett’s Stamp of Approval

Warren Buffett purchased his first Coca-Cola shares in 1988. More than 25 years later, the beverage giant remains one of the billionaire’s top holdings – something that’s not likely to change anytime soon. “We’ve never sold a share of Coca-Cola stock, and I wouldn’t think of selling a share,” he remarked at the annual Coca-Cola shareholders meeting in 2013.

Coca-Cola is more than a “wonderful” company in which Warren Buffett has invested – it’s an iconic one as well. The Oracle of Omaha, an American icon himself, is betting on these three quintessential U.S. companies as well:

Deere & Company ( NYSE:DE ) , better known as John Deere, is a dominant force in agriculture and construction. Founded in 1837, the company is listed 80 th on the 2014 Fortune 500 list, ahead of Delta Air Lines, Oracle and Morgan Stanley. It has a $29 billion market cap and over the past decade has produced annualized returns of 13%.

Warren Buffett initiated a position in Deere & Company during the third quarter of 2012 with the purchase of 3.98 million shares – a stake he has maintained ever since. Thus far, the investment has yet to pay off in a big way for the billionaire, as DE is up just +1.95% over the past year. In fact, it has declined more than -8% in 2014. However, Deere & Company is a long-term play for Buffett, and it has an attractive dividend yield of 2.87%.

Johnson & Johnson ( NYSE:JNJ ) has been in Buffett’s investment portfolio for years, though it’s no longer a protagonist. As of the second quarter of this year, the Berkshire Hathaway head holds 327,000 JNJ shares – just a fraction of the 41.3 million assets he owned during the same period in 2010.

A major player in the health care field, Johnson & Johnson’s reach stretches across 60 countries worldwide. It has a $299.26 billion market cap and a dividend yield of 2.64. This year has been a good one for JNJ, which is up over +15% in 2014. And Buffett isn’t the only billionaire with a stake in the company – Ray Dalio , George Soros and Richard Chilton are shareholders as well.

General Electric Company ( NYSE:GE ) – and Warren Buffett’s position in it – took many by surprise in February. The billionaire’s 13F filing revealed a 10.59-million-share stake in the company ( the result of an exercised warrant on a preferred shares deal made during the financial crisis of 2008 ). And while Buffett could have cashed in the investment, he has instead held onto his stake in subsequent quarters.

Ranked ninth on this year’s Fortune 500 list, GE’s reach stretches across a number of sectors, including energy, technology, industrials and finance. It has a $263 billion market cap and a dividend yield of 3.35%. GE is down about -6% year to date, but things could very soon turn around as it completes the acquisition of French company Alstom in a $17 billion deal .

See what other companies the iconic Warren Buffett is betting on at iBillionaire .


Comentarios (5)

Coco2 Ahora en Chile

18 Sep 14

Estos dos me parecen una gente excepcional, han realizado cosas
importantes, pero creo que estan ya para solicitar la paga, aunque
quien hace lo que le gusta, nunca lo deja. Saludos

20 Sep 14


Estos son como los expresidentes de cualquier país demócrata, ganan
mucho más dinero contando sus aventuras que lo que ganaban con el
ejercicio de su función.

También hay otra similitud, lo que aconsejan ahora es lo que debieron
hacer y que no hicieron en su momento, o que ellos mismos no hacen ahora.

No les quito ningún mérito, que lo tienen y mucho,… pero como bien
dices: están para mimar nietos y no tanta auto propaganda comercial
pasada de moda y tan cansina y repetida metodología de venta directa
como es: Habla, enseña y usa el producto que vendes. 

Coco2 Ahora en Chile

20 Sep 14

Yo la verdad nunca los he seguido ... prefiero seguirme a mi mismo y
a mi "Trading Value Investing".

20 Sep 14

Pues creo que son quienes tienen más seguidores en este foro y en
otros... pero estoy de acuerdo "prefiero seguirme a mí
mismo"... aunque estudio todo lo que los grandes hacen porque
cada día aprendo

Coco2 Ahora en Chile

20 Sep 14

El merito no se lo podemos quitar, son de los mejores por no decir
los mejores en su forma de invertir, y eso es mucho, pero si quieres
aprender, la mejor manera es equivocandose uno mismo, si te equivocas
por los demas nunca avanzaras, eso si, aprender algo nuevo, siempre,
todos los dias.