Investing Themes from Warren Buffett: Wells Fargo & Co (WFC), H.J. Heinz Company (HNZ), DIRECTV (DTV)

Page 1 of 2

In his highly anticipated letter to shareholders, the Oracle of Omaha drops little gems for his readers. This year the Chairman ofBerkshire Hathaway Inc. (NYSE:BRK.B) didn’t disappoint either. Here are some of the notable investing themes and tips from Mr. Buffett.

1.Buffett Still Likes Big Blue and Wells Fargo & Co (NYSE:WFC)

Of the “Big Four” investments in Berkshire’s common stock portfolio, the company continued to ramp up purchases of International Business Machines Corp. (NYSE: IBM). As a result, Berkshire now owns roughly 6% of Big Blue, and this will notch up higher as IBM has a massive share repurchase plan in place. IBM bought back shares worth $12 Billion in the last year, which was a key driver for the stock price.

Wells Fargo & Co (NYSE:WFC)Buffett likesWells Fargo & Co (NYSE:WFC)a lot and added more shares recently. In fact, Wells Fargo & Co (NYSE:WFC) ousted The Coca-Cola Company (NYSE: KO) to be largest common stock holding in Berkshire’s portfolio. And rightly so, the conservatively managed bank has been hitting record net income numbers while improving its ROE simultaneously, it is even buying back shares as well. Berkshire now owns more than 8.7% of Wells Fargo & Co (NYSE:WFC), which is almost certain to go up in the near future.

2.Ever Optimistic About the US

Buffett has always been one of the most vocal proponents of the country’s bright future, even during economic downturns. And his optimism continues, Berkshire spent $9.8 Billion on plant and equipment in F’12, 88% of which was in the U.S.

And he expects to spend even more in capital expenditures in 2013. In his words,“The Dow Jones Industrials advanced from 66 to 11,497 in the 20th Century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression and many recessions. And don’t forget that shareholders received substantial dividends throughout the century as well. “

3.Investment Managers Are Outperforming

Berkshire’s new duo of investment managers, Ted Weschler and Todd Combs are doing very well. In fact, both of them outperformed the S&P 500 by more than 10%, and did better than Mr. Buffett himself. As a result, the fund allocation to each has been notched up to roughly $5 billion. As a result, both Todd and Ted now have a much bigger say in Berkshire’s oversized portfolio.

The duo will certainly do well over time, and their largest bet has been onDIRECTV (NASDAQ: DTV), in which the combined holdings of both at year end 2012 were worth $1.15 billion. Investors should take heed; the duo will almost certainly take on the CIO role in the post-Buffett era.

4. Berkshire Hathaway Is the Best Mutual Fund in the World?

This phrase has been coined numerous times before, and rightly so. Unlike numerous other mutual funds, there is no front-load or back-end fees, management fees, marketing fees etc. And even better, Berkshire Hathaway doesn’t engage in high volume trading that many mutual funds do, often to align themselves with an index or their own investment mandate, both of which impact the performance.

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 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

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!