Is Berkshire Hathaway Inc. (BRK) a Good Investment?

Well, thankfully, we can see these holdings due to its quarterly 13F filings with the SEC (see Berkshire’s total portfolio here), which show us that a little under 60% of its total 13F assets are invested in three companies: The Coca-Cola Company (NYSE:KO), Wells Fargo & Company (NYSE:WFC) and International Business Machines Corp. (NYSE:IBM).

Each investment currently sports an earnings yield more than twice that of a Treasury Bond–Coca-Cola is at 5.2%, Wells Fargo is at 9.5% and IBM is at 7.1%. Equally as crucial, each company is a behemoth in its respective industry. In the hedge fund industry at large, this trio is also extremely well-loved. Each was in the 98th percentile in our entire universe of stocks, with Wells Fargo (81) having the highest level of fund interest.

The sell-side expects each company to experience annual earnings growth between 7-9% over the next half-decade, and only IBM pays a dividend below a 2% yield. In terms of valuation, Coca-Cola, Wells Fargo and IBM all trade at a discount in relation to their respective industry averages, and Wall Street’s price targets expect an upside of 10-14% from current levels for each stock.

While it’s tempting to just take a look at the value of Berkshire Hathaway itself, investors must realize that the majority of the firm’s portfolio also offers solid value, and some of the smart money’s biggest players have been bullish. While an 82-year old Warren Buffett may scare some investors, it’s important to mention that the Oracle is still in relatively good health after receiving treatment for stage 1 prostate cancer last year.

For the time being, we’d still place a “Buffett premium” on the stock that’s surprisingly trading at a discount. To read more related coverage, continue on Insider Monkey below:

Buffett Buys More DaVita

Bill Gates Still Loves Berkshire

Warren Buffett News: Don’t Invest in ‘Stuff’

Disclosure: I don’t have any positions in the stocks mentioned above