One of Buffett’s five largest holdings was The Procter & Gamble Company (NYSE:PG), disclosing ownership of over 50 million shares in the 13F. Profits were down at the company in its fiscal Q4 (which ended in June) compared to a year ago though the sell-side expects business to recover somewhat over the next several quarters (making for a forward P/E of 17). With a beta of 0.3 and a dividend yield of 3.1%, The Procter & Gamble Company (NYSE:PG) is a potential defensive pick. Pershing Square, managed by billionaire Bill Ackman, has been another major shareholder in The Procter & Gamble Company (NYSE:PG) (check out more stocks Ackman likes).
12 billionaires reported positions in Mastercard Inc (NYSE:MA), making that stock the fifth on our list as Berkshire had 405,000 shares in its own portfolio. Similarly to its peer the stock is fairly expensive in terms of earnings, with trailing and forward P/Es of 26 and 21 respectively. Last quarter Mastercard did manage double-digit growth rates on both top and bottom lines, however, and so it might be worth keeping an eye on in any case (though some credit card companies do appear cheaper). As with Visa, Tiger Cub funds love Mastercard- including Tiger Global Management, which counts billionaire Chase Coleman among its managers.
Finishing off our list is $55 billion market cap global snack foods company Mondelez International Inc (NASDAQ:MDLZ), formed from the breakup of Kraft Foods. Billionaire Nelson Peltz’s Trian Partners has taken a large position in the company, hoping to create a merger with PepsiCo, Inc. (NYSE:PEP) (check out more of Trian’s picks). Mondelez is valued at 18 times forward earnings estimates; many food stocks have been trading at fairly high earnings multiples following M&A interest in the industry and Buffett’s own acquisition of Heinz.
Disclosure: I own no shares of any stocks mentioned in this article.