A Santa Baby Buffett Portfolio

AnnaLisa is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

Yes, Warren Buffett with a beard would bear a striking resemblance to Santa and it's fun to imagine a young Eartha Kitt growling or Taylor Swift twanging him a version of the classic "Santa Baby" song writtten in 1953.  Without further ado, picture Madonna vamping before our beloved Warren in red suit begging for some of his favorite holdings. (It's also an easy way to remember some of his picks!)

Santa Baby, slip some cable under the tree, Direct TV,

Been an awful good girl, Santa Baby,

And hurry down the chimney tonight.

Santa Baby, an outerspace convertible, too, light blue,

I'll wait for GM my dear,  Santa Baby

And hurry down the chimney tonight.

Think of all the fun I've missed,

I could use some Phillips 66.

Next I could be oh-so-good,

If you'll check off my Costco list. Boop boop e doo.

Santa honey, I want Coca-Cola stock, that's not a lot,

Been an angel all year, Santa Baby and hurry down the chimney tonight.

Santa Cutie, there's one card I want to possess, platinum American Express,

Santa Cutie, hurry down the chimney tonight.

Santa Baby, fill my stocking with Wells Fargo stock and checks,

Sign your X on the line, Santa Baby, and hurry down the chimney tonight.

Come and trim my Christmas tree with corporations like your fave GE,

Investors do believe in you,

Do you still believe in IBM, too? Boop boop e doo.

Santa Baby, forgot to mention one little stock, that rocks,

I mean Sanofi, with yield, Santa Baby,

And hurry down the chimney tonight.

And hurry down the chimney tonight.

And hurry down the chimney tonight.

  • DIRECTTV, the digital television provider has some 33 million subscribers in the US and Latin America. Warren holds a 4.89% stake in the company and it trades at a 12.30 P/E, lower than the industry's 15.28. Analysts expect 17.26% growth over the next five years.
  • General Motors, the global auto company has a forward P/E of 6.60. Berkshire Hathaway owns 15 million shares. Analysts give it a mean price target of $32.00 for over 30% upside.
  • Phillips 66 (NYSE: PSX) was spun off from Conoco Phillips, another Buffett long position, last spring. It has a 6.11 P/E and a 1.90% yield at a 5.00 payout ratio. Shares have almost doubled since its IPO and Warren is the biggest institutional holder with a 4.34% stake of the company.
  • Costco hit an all time high of $105.97 on December 5. It's trading at a 23.63 P/E with a 1.10% yield. Return on equity of 14.72% and quarterly earnings growth of 30.00% year over year are probably part of the reason Warren's Berkshire Hathaway owns it along with his BFF Bill Gates whose Bill and Melinda Gates Foundation owns over 6 million shares.
  • Coca-Cola (NYSE: KO) is Warren's favorite beverage and stock and the largest holding in his portfolio, 400 million shares. The still and sparkling beverage company has a 19.71 P/E and a 2.70% yield. With worldwide brand recognition and loyalty (you couldn't catch Warren drinking a Pepsi!) it has a 26.42% return on equity.
  • American Express  is one of Warren's biggest holdings. It has a 13.17 P/E and a 1.90% yield. Analysts expect over 11% growth per year over the next five years for the credit card and travel services company. Berkshire Hathaway owns a 13.55% stake in the company and is its largest institutional holder.
  • Wells Fargo & Company with a forward P/E of 9.12 and a 2.60% yield is a long time holding for Warren and one of his top five holdings. This play on a housing recovery finds Warren again as the largest institutional holder with 422,549,545 shares to make him an 8.03% stakeholder.
  • General Electric (NYSE: GE) the conglomerate of industry, energy, and healthcare equipment, just today upped its dividend by 12% which stands at 3.10% and authorized an additional $10 billion of share buybacks. The forward P/E is 12.83 and analysts expect 11.25% growth per year for the next five years.
  • International Business Machines (NYSE: IBM) has a believer in Buffett as its largest institutional saheholder at 5.98% with a $14 billion valuation. The stock is down 10% from its high of $211.79 but has  a1.80% yield and  a 13.79 P/E. The information technology and services provider has moved on from its Big Blue hardware legacy and the stock has almost tripled from its 2008 lows.
  • Sanofi (NYSE: SNY) is one of Warren's few foreign based stocks and also one of his highest yielders at 3.60%. It just hit a 52 week high on December 14 up 34.89% over the last year. This healthcare and pharma company has a big presence in diabetes and cancer treatments along with veterinary medicines. 

The Best Of Santa Baby

My favorite cover rendition is Madonna as it's so Betty Boop like. Oh, you meant the stocks. Sanofi has good yield and Coca-Cola does, too but the real outperformers have been IBM and Phillips 66. GE just raised its dividend and is overall a conglomerate with its inherent diversification so those are the ones I would highlight for a Santa Baby 2013 portfolio. Hope Santa brings you something nice. Happy Holidays!

 

 


leglamp has no positions in the stocks mentioned above. The Motley Fool owns shares of General Electric Company and International Business Machines. Motley Fool newsletter services recommend International Business Machines and The Coca-Cola Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

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