This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Buffett's Favorites Draw Mixed Reviews

Stocks in this article: BRK.AKOWFCAXPPGCOP

NEW YORK ( TheStreet) -- Given the mix of winners and losers we have seen during the opening weeks of earnings season, it has likely been difficult for many stock pickers to avoid navigating the markets without a setback. Even Warren Buffett has seen a blend of both strength and weakness from the companies in his legendary portfolio.

This week has been an important one for fans of the Oracle of Omaha. Over the past few days, some of the largest names in the Berkshire Hathaway (BRK.A) stock portfolio have reported their earnings over the past quarter and provided insight into the closing months of the year.

Of particular importance were Coca-Cola (KO), Wells Fargo (WFC) and American Express (AXP), which represent the three largest slices of the portfolio.

Buffett's stock portfolio casts a wide net across the broad market spectrum, offering exposure to financials, industrials, consumer goods, energy and other sectors. From an individual holdings perspective, however, the lineup is notably concentrated. Together KO, WFC, and AXP represent nearly 60% of the total assets.

>>View Warren Buffett's Portfolio

Swirling macroeconomic turbulence appears to have had only a limited effect on consumer demand for soft drinks over the past few months. Over the most recent three-month period, Coca-Cola reported an earnings growth of more than 8%. A Wall Street Journal report notes that, excluding charges including restructuring costs, the company was able to outpace analyst estimates.

Despite this strength, the firm recognized that the road ahead is not entirely smooth as continued global economic turmoil and rising commodity costs are among the challenges they face.

Berkshire's No. 3 holding, American Express, also fared favorably over the past three months, beating forecasts.

Company executives pointed to consumer resilience as a major source of strength for the credit card giant over the quarter. In his statement included in the company's earnings press release, CEO Kenneth Chenault noted that card-member spending jumped 16% to a record level. Looking ahead, the company appears cautiously optimistic. Economic issues remain a cause for concern. However, Chenault mentions that AXP has taken a number of steps that have improved its competitiveness.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,812.89 -2.05 -0.01%
S&P 500 2,070.38 +3.35 0.16%
NASDAQ 4,778.8560 +20.6040 0.43%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs