Warren Buffett is the chairman and CEO of Berkshire Hathaway BRK.A, which averaged an annual growth in book value of about 20% to its shareholders for the last 44 years. Ordinary investors follow Warren Buffett’s investments, so do seasoned professional money managers – they even invest their clients’ funds in Berkshire Hathaway stock. Berkshire Hathaway stock had a total return of 76% from 2000 to 2010 versus a negative 11.3% for S&P 500 SPY.
Jim Cramer recently said that the market and individual stocks are not fluctuating due to company specific fundamentals but rather are pushed around by ETFs and futures traders. His advice is to focus on the market’s volatility and leveraging that for profit.
Warren Buffet is simply a value investor and he has been holding on to his positions for years if not decades to minimize taxes. On the other hand, Jim Cramer updates his stock recommendations daily. We believe that we can learn from Warren Buffett which stocks to invest in long-term. Among the stocks in Warren Buffett’s portfolio Jim Cramer can show us the correct time of initiating new positions. With that thought in mind, we have combined Warren Buffett‘s long term stock picks with Jim Cramer’s recent stock recommendations. All stocks in this list have been recommended by Cramer on Mad Money during the last 30 days and listed in Warren Buffett’s Berkshire Hathaway’s most recent 13F filing. We have obtained market data from Finviz and hedge fund holdings from Insider Monkey.
1. U.S. Bancorp (USB): Shares of USB recently traded at $28.77 with a trailing price to earnings of 12.73 and a forward price to earnings of 10.95. USB has a 1.72% dividend yield and gained 10.67% during the past 12 months. The stock has a market cap of $55.4 billion and a total debt/equity ratio of 1.89. Buffett has $1.6 billion invested in USB shares.
2. Wells Fargo & Company (WFC): Shares of WFC recently traded at $29.83 with a trailing price to earnings of 10.97 and a forward price to earnings of 9.2. WFC has a 1.62% dividend yield and lost 5.76% during the past 12 months. The stock has a market cap of $156.1 billion and a total debt/equity ratio of 1.34. WFC is one of the top picks amongst fund managers. Warren Buffett had almost 15% of his Berkshire Hathaway invested in WFC at the end of the third quarter while Lee Ainslie’s Maverick Capital had almost 4% of its portfolio in WFC, and John Paulson‘s Paulson & Co. had 2.78% of its portfolio in the company.
3. Intel Corporation (INTC): Shares of INTC recently traded at $25.04 with a trailing price to earnings of 10.88 and a forward price to earnings of 10.56. INTC has a 3.34% dividend yield and gained 22.28% during the past 12 months. The stock has a market cap of $128 billion and a total debt/equity ratio of 0.15. Buffett initiated a $199 million position in INTC during the third quarter of 2011. Paul Ruddock and Steve Heinz’s Lansdowne Partners had $491.52 million at the end of the third quarter, while Ken Fisher’s Fisher Asset Management had roughly $414.02 million in the company at the end of September.
4. Coca-Cola (KO): Shares of KO recently traded at $67.35 with a trailing price to earnings of 12.34 and a forward price to earnings of 16.26. KO has a 2.81% dividend yield and gained 8.71% during the past 12 months. The stock has a market cap of $152.1 billion and a total debt/equity ratio of 0.88. Warren Buffett had $13.5 billion invested in KO at the end of the third quarter.
5. Kraft Foods (KFT): Shares of KFT recently traded at $38.13 with a trailing price to earnings of 20.64 and a forward price to earnings of 14.99. KFT has a 3.07% dividend yield and gained 24.24% during the past 12 months. The stock has a market cap of $66.7 billion and a total debt/equity ratio of 0.79. Warren Buffett had a $3 billion stake in the company at the end of the third quarter.
6. Costco Wholesale Corporation (COST): Shares of COST recently traded at $81.42 with a trailing price to earnings of 24.28 and a forward price to earnings of 18.45. COST has a 1.19% dividend yield and gained 13.9% during the past 12 months. The stock has a market cap of $35.1 billion and a total debt/equity ratio of 0.19. Warren Buffett had $356 million invested in COST at the end of the third quarter.
7. Sanofi (SNY): Shares of SNY recently traded at $35.77 with a trailing price to earnings of 15.7 and a forward price to earnings of 8.81. SNY has a 5.16% dividend yield and gained 7.55% during the past 12 months. The stock has a market cap of $94.8 billion and a total debt/equity ratio of 0. Warren Buffett had $133 million invested in SNY at the end of the third quarter. Ken Fisher had $483 million invested in SNY shares.
8. General Electric (GE): Shares of GE recently traded at $18.74 with a trailing price to earnings of 15.44 and a forward price to earnings of 12.15. GE has a 3.61% dividend yield and gained 4.84% during the past 12 months. The stock has a market cap of $198.9 billion and a total debt/equity ratio of 3.75. Warren Buffett had $118 million invested in GE at the end of the third quarter. Ken Fisher also had $479 million invested in GE shares.
