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Buffett's Berkshire Hathaway's Top Stock Holdings: How to Trade Them

The four Buffett Dow stocks have underperformed the Dow Jones Industrial Average, which is up 2.6% year to date.

Berkshire's biggest holding is Wells Fargo, a "too big to fail" bank ($51.18). It has a solid gain of 13% year to date. The stock has been above its 200-day simple moving average since Dec. 17, 2012, when the average was $33.38. The stock traded to an all-time intraday high at $53.08 on July 3, well above the 200-day SMA, which is now at $48.12. Wells closed below its 50-day SMA at $51.43 on Friday.

The weekly chart shifts to negative given a close on Friday below the five-week modified moving average at $50.93 as its stochastic is declining. Weekly and semiannual value levels are $49.39 and $43.37, respectively, with a semiannual pivot at $50.95 and quarterly and monthly risky levels at $53.09 and $54.24, respectively.

The second largest holding is Coca Cola ($41.12), which has slipped 0.5% year to date. The stock broke below its 200-day SMA at $40.12 on Jan. 13 and traded as low as $36.89 on Feb. 20. Coke moved back above its 200-day SMA at $39.18 on April 15, traded as high as $42.57 on July 21, got crushed to $39.06 on Aug. 1 (back below the 200-day SMA at $39.90) and then rebounded to $41.69 on Aug. 21 with the 200-day SMA at $39.98.

The weekly chart shifts to negative given a close on Friday below its five-week MMA at $40.83. Monthly and annual value levels are $39.33 and $38.28, respectively, with a quarterly pivot at $40.34 and semiannual and annual risky levels at $43.67 and $43.98, respectively.

In third place is International Business Machines ($190.41), up 1.5% year to date. The stock began the year with a failed test of its 200-week SMA at $190.72 on Jan. 17. IBM then traded to its 2014 low at $172.19 on Feb. 5. The stock then catapulted above its 200-day SMA at $186.06 on March 20, and traded to its 2014 high at $199.21 on April 10. This two-way volatility continued with a low of $179.27 on June 26, back below the 200-day SMA at $184.72. The next high was $196.40 on July 28 with the 200-day SMA, now at $185.79.

The weekly chart shifts to negative given a close on Friday below its five-week MMA at $188.61 with its 200-week SMA at $185.07. An annual value level is $167.40 with a quarterly pivot at $191.58 and monthly and weekly risky levels at $196.32 and $197.71, respectively.

The fourth largest Buffett holding is American Express ($88.88) down 2% year to date. The stock set an all-time intraday high at $96.24 on July 1 then the stock fell below its 200-day SMA at $88.50 on July 31 and traded as low as $85.75 on Aug. 1. The stock closed Friday just below its 200-day SMA at $89.01.

The weekly chart is negative with its five-week MMA at $89.83. Weekly and annual value level are $85.97 and $61.37, respectively, with monthly and semiannual risky levels at $93.78 and $96.66, respectively.

Read More: Halliburton Is a Bargain, so You'd Better Buy Now

The fifth largest Buffett holding is Procter & Gamble ($83.39), up 2.4% year to date. The stock traded back and forth around its 200-day SMA at $80.56 since Jan. 21, going as low as $75.26 on Jan. 31 and as high as $83.66 on Friday.

The weekly chart is positive with its five-week MMA at $81.12 and its 200-week SMA at $71.06. Annual and semiannual value levels are $79.05 and $77.84, respectively, with a semiannual pivot at $83.70 and quarterly risky level at $92.19.

At the time of publication, the author held no positions in any of the stocks mentioned.

Follow @Suttmeier


This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.


TheStreet Ratings team rates COCA-COLA CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate COCA-COLA CO (KO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its expanding profit margins, reasonable valuation levels, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

You can view the full analysis from the report here: KO Ratings Report


TheStreet Ratings team rates WELLS FARGO & CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate WELLS FARGO & CO (WFC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

You can view the full analysis from the report here: WFC Ratings Report

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