By Jon C. Ogg, 24/7 Wall St.
NEW YORK (TheStreet) -- Investors have tried for years to follow the strategy of Warren Buffett, considered by many to be the greatest investor in history. That's ironic given how little he seems to care about ups and downs of Berkshire Hathaway's (BRK.A) share price and quarterly earnings.
But now that earnings season is behind us, 24/7 Wall St wanted to see which stocks currently offer the most value for investors who like to mimic Buffett's investment strategies, which are similar to those investors use when buying a business. Buffett is a deep value investor whose time frame for payback is "forever."
Here are the top positions with the most upside from Buffett's stock portfolio. In order to qualify at the current time, the Buffett positions had more than a 10% hurdle to rise before reaching the current target objective. When we ran a similar screen of Buffett stocks earlier in the year there was actually a hurdle closer to 30%. That is what happens after many rallies. As always, the full Buffett and Berkshire holdings are here.In our analysis, we have included prices based as of Dec. 1, 2010, the consensus price targets on each along with the upside, we added in color on what may help or hinder the implied upside, shown what each have for dividend yields, and compared each with their 52-week trading range and other older historic highs.
1) American Express Company (AXP) has an implied upside of about 14.5% to consensus target of $50.66. JPMorgan just set its target at $50 with an overweight rating on Dec. 1. The current dividend yield is roughly 1.7%. Berkshire holds $151.6 million shares. AmEx has benefited from shrinking customer delinquencies and charge-offs. Another strength here is that American Express tends to serve a higher-end market than many other credit companies. Its 52-week trading range is $36.60 to $49.19. 2) Bank of America (BAC) has a consensus target is $18.36, implying a 66% upside from its $11.04 price. The target price also under the near-term highs as a 52-week range is $10.91 to $19.86. Before you get excited about it being about 1% from lows, there are some serious issues to consider.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV