NEW YORK (Stockpickr) -- At Stockpickr, we track the top holdings of a variety of high-profile investors, such as George Soros and Carl Icahn.
Must Read: Warren Buffett's Top 10 Dividend Stocks
Today we're taking a closer look at 11 stocks that Buffett bought in the most recently reported quarter, based on Berkshire Hathaway's most recent quarterly 13F filing with the SEC, which reflects holdings as of Sept. 30, 2014. They are ordered by position size. (He also initiated positions comprising less than 0.1% of his portfolio in Liberty Broadband ( (LBRDK) ) and Express Scripts ( (ESRX) ).
MasterCard (MA) comprises 0.3% of Berkshire Hathaway's portfolio. Buffett increased his stake in the stock by 16.4% to 4.7 million shares in the most recently reported quarter.
TheStreet Ratings team rates MasterCard as a buy with a ratings score of A+. TheStreet Ratings team has this to say about its recommendation:
"We rate MasterCard (MA) 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 20.8%. Since the same quarter one year prior, revenues rose by 12.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MA's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MA has a quick ratio of 1.56, which demonstrates the ability of the company to cover short-term liquidity needs.
- MasterCard has improved earnings per share by 19.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MasterCard increased its bottom line by earning $2.57 versus $2.19 in the prior year. This year, the market expects an improvement in earnings ($3.08 versus $2.57).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the IT Services industry average. The net income increased by 15.5% when compared to the same quarter one year prior, going from $879.00 million to $1,015.00 million.
- The gross profit margin for MasterCard is rather high; currently it is at 60.05%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 40.55% significantly outperformed against the industry average.
You can view the full analysis from the report here: MA Ratings Report