#3 International Business Machines Corp. (NYSE:IBM)
– Shares Held (as of June 30): 81.23 million
– Value of Shares (as of June 30): $12.33 billion
Although International Business Machines Corp. (NYSE:IBM) has pretty much been a disappointment for Buffett since he added the tech company to his portfolio several years ago, the Oracle has nevertheless chosen to keep his position in the stock. At the end of June, Buffett owned 81.23 million IBM shares worth $12.33 billion. Long investors hope that Big Blue’s investments in artificial intelligence (Watson), quantum computing, and cloud tech will pay off in the long run, as its current cost cutting, asset selling, and buyback initiatives can only go so far. Fortunately, Buffett has a very long investing horizon and IBM remains indispensable to many big corporation’s IT departments. Big Blue’s annual dividend of $5.60 per share, offering a current 3.64% yield, certainly helps Buffett hold onto the stock.
#2 The Coca-Cola Co (NYSE:KO)
– Shares Held (as of June 30): 400 million
– Value of Shares (as of June 30): $18.13 billion
Although most of Buffett’s notable purchases in The Coca-Cola Co (NYSE:KO) occurred decades ago (when the stock was a demographic/emerging market play), the Oracle has chosen to retain his position in the soft drink maker, owning 400 million shares of it worth over $18 billion at the end of June. While no longer a demographic play, Coca-Cola is now a very solid dividend play. Coca Cola has raised its payout every year for 53-straight years and its stock now pays an annual dividend of $1.40 per share, which equates to a 3.32% yield. Of the 749 hedge funds that we track which filed 13Fs for the June quarter, 55 owned shares of The Coca-Cola Co (NYSE:KO) at the end of June, down by seven funds quarter-over-quarter.
#1 Wells Fargo & Co (NYSE:WFC)
– Shares Held (as of June 30): 479.7 million
– Value of Shares (as of June 30): $22.7 billion
With almost 480 million shares of Wells Fargo & Co (NYSE:WFC) in his holding company’s portfolio on June 30, the bank ranked as Warren Buffett’s favorite, accounting for 17.5% of the value of Berkshire’s portfolio. Due to a big scandal concerning Wells Fargo’s previous sales practices, such as when some of the bank’s former employees fraudulently opened around 2 million customer accounts to meet sales targets, shares of the bank have fallen sharply from their highs this year and are now down by 14% year-to-date. The fall might present an opportunity for long-term investors however, if the bank’s management can navigate the company through the publicity crisis. Wells Fargo still has one of the lowest cost of capital figures in the industry. Shares of the bank now yield a dividend payout of 3.35%. Ken Fisher‘s Fisher Asset Management owned almost 19 million Wells Fargo shares at the end of June.