How’s Earnings Season Been for Buffett So Far?: American Express Company (AXP), International Business Machines Corp. (IBM)

Page 1 of 2

Warren BuffettWith most of the fourth quarter of 2012′s earnings season behind us, did the Oracle of Omaha put a notch in the “win” column for Berkshire’s $77.2 billion portfolio?

Warren Buffett may be the greatest investor alive, but even the Great One (financially speaking) still recognizes earnings season as an important time for investors to take stock of their investments. With earnings already reported for four of Berkshire Hathaway Inc. (NYSE:BRK.A)‘s five largest investments , we can take a look at how Buffett’s picks fared during the fourth quarter long before the firm releases its annual statements in late February.

5. The Procter & Gamble Company (NYSE:PG)

The second-quarter results for The Procter & Gamble Company (NYSE:PG) were pretty impressive. The company responsible for Tide, Gillette, and Pampers was able to turn a 2% boost in revenue into a 57% increase in profit, when compared to 2011 results. That kind of improvement highlights the efforts taken by P&G to clean up its operations and improve cost savings, after years of criticism for over-expansion internationally — something that any investor should be excited to see.

Beyond happy investors, P&G CEO Bob McDonald should be walking tall after the earnings release. Since the embattled CEO faced loud opposition to his position atop the company, including calls for his resignation from activist investor Bill Ackman, after reducing forecasts three times last year — it is a great sign of leadership that the company has returned to meeting and exceeding expectations.

4. American Express Company (NYSE:AXP)

The credit card and personal finance company posted pretty lackluster results from its fourth-quarter operations, but there are still plenty of reasons to be excited about where American Express Company (NYSE:AXP) is headed. The company’s revenue only grew 5%, boosted mostly by an 8% increase in card-member spending — but straggled behind most of its competitors.

AmEx is able to boast one thing among its closest competitors — a 23% ROI in the fourth quarter. While the company announced planned cuts in its travel department, which would affect its bottom line and boost ROI, the company is clear about its continued focus on investing in the business and moving forward. With an eye to the future and the plans to match, this company should be a favorite among investors.

3. International Business Machines Corp. (NYSE:IBM)

The tech giant’s earnings release performed a feat of Herculean effort. On a day when 21 of the 30 stocks that comprise the Dow Jones Industrial Average were seeing red, International Business Machines Corp. (NYSE:IBM)‘s boost from its better-than-expected earnings pushed the index higher. With a 6.3% increase in profits, the company outpaced expectations and pleasantly surprised investors.

IBM also increased its earnings outlook for the remainder of 2013. While that may be good news by itself, investors should know that the company’s new estimates show 2013 earnings up 8% from 2012 — a nice chunk of change if IBM meets the estimates. And some new information may just shore up IBM’s confidence: within the disappointing GDP figures released today, the data still showed consumer spending was up in the fourth quarter — with private domestic investment in equipment and software up 12% from the third quarter.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!