Microsoft Corporation (MSFT); Wells Fargo & Co (WFC), American Express Company (AXP): Grandmaster Capital’s 2014 Q4 Top Picks

In 2014, Wells Fargo & Co (NYSE:WFC) achieved pre tax margins of 38.4% and while the street anticipates earnings to rise by a mere 1% this year, 2016 is expected to deliver an earnings growth rate of 10%. In fact, the stock is not only performing well, but is also backed strongly by Warren Buffett’s Berkshire Hathaway, which holds a position of 463 million shares, representing more than 20% of its equity portfolio. As everyone knows, Mr. Buffett’s moves enjoy the respect and following of countless investors on Wall Street and thus it is more than understandable to see Wells Fargo amongst Grandmaster Capital’s top picks for the end of the fourth quarter.

According to its latest 13F filing, Mr. Wolff’s firm was also betting on American Express Company (NYSE:AXP) at the end of 2014, boasting a stake of 197,400 shares. The hedge fund disclosed entering a new position in the company at the end of the first quarter of 2013 and since then, the stock has gained around 37%. Although the stock experienced volatile growth last year, with share prices taking a dive in October, the company seems to be on the right track. Furthermore, it is another one of the major stakes held by Berkshire Hathaway. Mr. Buffett’s firm is American Express Company (NYSE:AXP)’s largest institutional, with a position amounting to 151 million shares. In addition to the bullish stance taken on by this well-respected investment firm, the consensus earnings estimate for the next quarter is $1.35 per share, compared to $1.25 per share for the same period last year. Annual revenue for 2014 on the other hand is estimated to reach $33.8 billion, up from $33 billion in 2013 and $31.6 billion in 2012.

Disclosure: none.