This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Warren Buffett's 10 Best Investments for 2011

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 - Get Report) 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."

More from 24/7 Wall St
10 States With Most Unemployed Losing Benefits
Pfizer CEO Gone, Who Is Next?
10 Businesses the Smartphone Has Destroyed

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 - Get Report) 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 - Get Report) 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.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BK $43.92 0.55%
AXP $71.70 0.10%
BAC $17.44 -0.17%
BRK.A $202,640.00 -0.35%
GE $30.37 -0.95%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs