International Business Machines Corp. (IBM), Wells Fargo & Co (WFC): Billionaire Warren Buffett’s Top Stocks

Billionaire Warren Buffett of Berkshire Hathaway Inc. (NYSE:BRK.B), the famed value investor, uses a strategy of discipline and patience. What Buffett really looks for are great companies trading at a discount to their intrinsic value, and then he holds them them for a long time.

Saying of his strategy, Buffett notes that he wants “businesses to be one that we can understand, with favorable long-term prospects, operated by honest and competent people, and available at a very attractive price.” Outlined below are Buffett’s top five stocks going into the second quarter (check out Buffett’s cheap stocks).

Buffett’s number one stock remained Wells Fargo & Co (NYSE:WFC), making up 19.9% of his 13F portfolio. Wells has been one of the better-performing banks throughout the financial crisis.

For China, The Coca-Cola Company (NYSE:KO) is looking to invest upwards of $4 billion in the country over three years, as well as invest $3 billion in Russia between 2012 and 2016, and $8 billion in Brazil through 2016. This should help the company balance out its geographical revenue makeup, where Coca-Cola hopes that developed, developing and emerging markets will contribute 33% of revenue each by the end of 2020.

International Business Machines Corp. (NYSE:IBM) was in third and makes up 17% of the portfolio. IBM has a market-leading position in IT services and servers. First- quarter earnings came out to $3.00 per share, versus $2.78 for the same quarter last year. One of IBM’s big positives is that it generates more than 50% of its revenue outside the U.S., and in 2012 the revenue generated from growth markets made up 24% of revenue.

This is in part thanks to International Business Machines Corp. (NYSE:IBM)’s strong hold in the Asia-Pacific and Latin American markets, where demand for IT services is rising from the likes of telecommunications, oil & gas and banking companies.

However, revenue growth is expected to be modest at best over the interim, up 0.5% in 2013 and then 2.5% in 2014. What’s more is that the company’s valuation appears to be in fair value range. International Business Machines Corp. (NYSE:IBM) trades at 14.5 times earnings, while other major tech giant Cisco Systems, Inc. (NASDAQ:CSCO) is at 13.5 times and Intel Corporation (NASDAQ:INTC) 12.2 times. However, Buffett has fellow billionaire Ken Fisher behind him as the second-largest hedge fund owner by shares (check out Fisher’s latest moves).