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
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!