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TheStreet Open House

Warren Buffett's Portfolio Proves He's a Dividend Growth Investor

Stock quotes in this article: WFO, KO, AXP, IBM, PG, XOM, WMT

NEW YORK (TheStreet) -- Warren Buffett is America's most well-known value investor. He has eclipsed the notoriety of his mentor and founder of value investing, Benjamin Graham. Warren Buffett's investing style has evolved significantly since his start as a value investor. When asked about his style, Warren Buffett says he is 85% Benjamin Graham and 15% Philip Fisher.

Read More: Warren Buffett's Top 25 Stocks for 2014

Philip Fisher's investment strategy was to focus the bulk of his portfolio into a few positions, and to look for businesses with a long growth runway ahead. Benjamin Graham's investment strategy was to purchase stocks for less than their intrinsic value; classic value investing. Warren Buffett looks for solid growth businesses that are trading at fair or better prices, not cheap businesses that have adequate growth.

It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. -Warren Buffett

Warren Buffett's Top 7 Picks

Warren Buffett's top seven largest positions by portfolio weight are examined below to see if the Oracle of Omaha's portfolio matches his advice.

  • Wells Fargo (WFC), 22% of portfolio
  • Coca-Cola (KO), 15% of portfolio
  • American Express (AXP), 13% of portfolio
  • International Business Machines (IBM), 12% of portfolio
  • Procter & Gamble (PG), 4% of portfolio
  • Exxon Mobil (XOM), 4% of portfolio
  • Wal-Mart (WMT), 4% of portfolio

Warren Buffett's top holdings are consistent with his advice and the teachings of his mentors. He holds a highly concentrated portfolio of businesses with long histories of growth and large growth runways ahead. Interestingly, every single one of Warren Buffett's top holdings has paid increasing dividends over the last five years.

KO Dividend Chart
KO Dividend
data by YCharts

Read More: Warren Buffett's 10 Favorite Growth Stocks

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