Buffett Bullish on MasterCard, Dollar General

BOSTON ( TheStreet) -- Warren Buffett's Berkshire Hathaway ( BRK.B) is increasingly liking the prospects of MasterCard ( MA), as it doubled a stake in the credit card processor in the second quarter after first buying shares three months earlier.

Berkshire Hathaway's 27-stock investment portfolio was valued at $52.4 billion June 30, down $1.2 billion, or 2.2%, in three months and about where it was at the start of the year, according to a filing Monday. The benchmark S&P 500 Index, in contrast, is down 5% this year.
Warren Buffett

Berkshire's allocation to Coca-Cola ( KO), its largest holding at 25% of the portfolio, was unchanged in the second quarter, valued at $13.5 billion. The soft drink maker's shares are up 3.5% this year and up 24% over the past 12 months.

Buffett's holding company added to Wells Fargo ( WFC), its second-largest holding, at 19% of the portfolio.

Berkshire Hathaway trimmed its Kraft Foods ( KFT) stake by 5.5%, but it's still the fifth-biggest holding at 6.7% of the portfolio.

About a week ago, Kraft announced it was splitting up into two companies, a global-snacks unit and a North American grocery business. Buffett, 80, who is chairman and chief executive officer of Berkshire Hathaway, said he supported the move.

>>View Warren Buffett's Portfolio

But he criticized the company's management in January 2010 when it announced the $19.6 billion acquisition of the candy company Cadbury, calling it "a bad deal."

Nevertheless, Kraft's shares are up 11% this year and 21% over the past 12 months.

Hedge and investment funds like Buffett's that manage more than $100 million are required to disclose their equity holdings, options and convertible debt on a Form 13F filed to the Securities and Exchange Commission within 45 days of the end of a quarter. Funds aren't required to report short positions betting on declines.

The following pages break down the stock performance of Buffett's newest holdings.

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