NEW YORK (TheStreet) -- Famed investor Warren Buffett has a proven track record of picking stocks that add value, while getting rid of those that deplete it. In his more than 60 years in the investment community, he's amassed a fortune which has him consistently ranked as one of the world's wealthiest.
One of the fathers of the modern value investing philosophy, Buffett evaluates a stock based on whether its intrinsic value is less than its market value; that is, truly outstanding companies which haven't realized their full market potential (or at least, the investing community hasn't yet). In this way, Buffett has managed to generate a net worth of $58.2 billion, according to Forbes.
Berkshire Hathaway (BRK.A), of which Buffett acts as CEO and its largest shareholder, adopts his principles of identifying intrinsically-valuable shares and routinely invests in some of the most profitable blue-chip companies on the U.S. market.
In particular, the company is at its best when it is weathering unpredictable stock movements and a depressed market. The company has underperformed the S&P 500 in only 10 of its 49 years of investing -- 9 of the 10 cases saw the S&P 500 exceed 15% in gains for the year.
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In his most recent annual letter to shareholders, Buffett noted, "Both Berkshire's book value and intrinsic value will outperform the S&P in years when the market is down or moderately up."
One method to hedge bad market turns with regular dividend-paying stocks. Buffett recently gave insight into his fund's favorites in a 13-F filing with the Securities and Exchange Commission, a required ownership inventory from institutional investment managers with more than $100 million in securities. The mandatory filing is submitted within 45 days of each quarter's end and provides a snapshot of how and where the firm invested in the three months to December.
Here are his portfolio's top 10 dividend-yield stocks for the year-ending quarter.
Note: All data is sourced from Berkshire Hathaway's 13F-HR SEC filing.