Warren Buffett’s Stock Picks Suffered The Same Fate As Everyone Else’s In Q3

The Coca-Cola Co (NYSE:KO)

• Shares Owned by Buffett (as of June 30): 400,000,000
• Value of Buffett’s Shares (as of June 30): $15.69 Billion
• Percentage of Buffett’s Public Equity Portfolio (as of June 30): 14.64%
• Third Quarter Returns: -3.15%

The Coca-Cola Co (NYSE:KO) was the top performing stock among Buffett’s top five stock picks, rebounding by more than 5% from its August low point. The second-most popular fast moving consumer goods stock among the investors we track, Coca-Cola is one of just a handful of ‘dividend kings’, and was recently honored as one of the Brands of the Year at the World Branding Awards, for the second straight year. Deutsche Bank recently initiated coverage of Coca-Cola with a ‘Buy’ rating and a $45 price target on the stock, representing upside potential of more than 10%. Another prominent value investor, Donald Yacktman’s Yacktman Asset Management, is also betting big on The Coca-Cola Co (NYSE:KO), with a position of over 30.49 million shares.

International Business Machines Corp. (NYSE:IBM)

• Shares Owned by Buffett (as of June 30): 79,565,115
• Value of Buffett’s Shares (as of June 30): $12.94 Billion
• Percentage of Buffett’s Public Equity Portfolio (as of June 30): 12.07%
• Third Quarter Returns: -10.14%

International Business Machines Corp. (NYSE:IBM) was the worst performer among Buffett’s top five stock picks, losing over 10% in the third quarter due to the market weakness and the continuing weakness in the PC industry. Undeterred, Buffett used the opportunity to purchase additional shares (an undisclosed amount) of IBM during the third quarter, which he revealed during an early-September interview on CNBC. “We bought it in the first quarter, and normally I wouldn’t tell you this, but we bought some in the third quarter,” Buffett said of IBM during the interview. Prem Watsa, dubbed “The Canadian Warren Buffett”, is thinking along the lines of his fellow colleague when it comes to International Business Machines Corp. (NYSE:IBM), owning 1.36 million shares, which also ranks it as Watsa’s third-largest U.S public equity position.