Buffett’s Portfolio Update

Billionaire investor Warren Buffett recently disclosed his latest investment moves. Let’s take a look at exactly what the Oracle of Omaha has been buying and selling.

Buffett’s Buys

Warren Buffett really likes Johnson & Johnson (JNJ). Buffett added to his investment in J&J adding 17.4 million shares to his current 23.9 million share stake. The purchase was valued at over $1 billion dollars. Buffett now owns 41.3 million shares of Johnson and Johnson.

Buffett also added another 4.2 million shares to his Walmart stake. Buffett must believe that the discount retailer is cheap. This is one of the few investment decisions that I disagree with Buffett on. Buffett also increased his stakes in Becton Dickinson, Nalco Holding, and Sanofi-Aventis.

Buffett’s Sales

Buffett sold off shares of M&T Bank, Proctor & Gamble, Kraft, and ConocoPhillips. Don’t assume that Buffett is exiting these positions. Most of these sales were probably just to raise some cash. Buffett still owns 105 million shares of Kraft, 78 million shares of Proctor & Gamble, and 29 million shares of ConocoPhillips.

New Addition

There was one new addition to Buffett’s portfolio. He picked up 4.4 million shares of Fiserv. Fiserv is a midcap information technology company that provides transaction processing services for financial institutions. The company is a classic Buffett investment generating large amounts of free cash flow, has double digit earnings growth, large operating margins, and a high return on equity. The only drawback is the nearly $3.5 billion dollars in debt versus $330 million in cash.