Warren Buffett’s Best Performing Stocks
Mike is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Warren Buffett is certainly a man many keep their eye on, and it’s no wonder. Buffett, currently valued at over $44 billion, definitely knows how to play the market effectively, and his investments have proven themselves sound. Four of his best performing stocks are proof of that, reaching incredible heights during the past year even in our fragile economy.
One of Buffett’s best performing stocks over the past year has been Dollar General Corporation (NYSE: DG). Dollar General was started in 1939 and they operate a variety stores in the United States. Based out of Tennessee, Dollar General Corp. currently operates chains in 40 US states. With revenue higher than expected expected, Dollar General has certainly had a good year. The stock is currently sitting up 63% since August last year.
Buffett has invested 0.5% of his total portfolio in Visa, Inc. (NYSE: V) and it’s not hard to guess why. Visa, the multinational finance service company based out of California, has proven themselves to be a good investment and, unlike their clients, Buffett won’t need to pay any of this cash back. Visa increased its share repurchase program by $1 billion in October last year and it seems to have helped them continue to grow in value ever since. Currently up 43.89% overall since August 2011, Visa is another company enjoying a sweet little increase on their current purchase price. All Buffett needs is Visa!
Not to be left behind though, another multinational financial services company is biting at the heels… yes, you guessed it: MasterCard Incorporated (NYSE: MA). A direct competitor of Visa, MasterCard was born into one form of its creation in 1966 and is used readily throughout the world. Based out of New York, MasterCard may not have quite the popularity that Visa does, but it refuses to go down without a fight. Following a joint venture with Telefonica S.A. to offer financial solutions to consumers, MasterCard has seen an almost steady increase since November last year. With a current market value up 40.52% in the last 12 months, MasterCard is pretty proud of itself. Credit cards may be the downfall of us general consumer folk, but it has certainly proved itself a cash cow for good ol’ Buffett.
An honorable mention is the shipping expert United Parcel Service, Inc. (NYSE: UPS). Buffett currently has 0.2% of his total portfolio invested in UPS and they are doing their best not to let him down… and UPS knows all about commitments. Reported to deliver over 15 million packages per day to over 220 countries, this company knows how to keep their word – not bad for little brown trucks out of Georgia. After a few agreements back and forth with TNT Express, UPS has seen a slight down in value through May and June of this year, but has managed to maintain its presence in the market. Sitting pretty at about 18% overall for the past year, UPS doesn't seem too worried. We don’t think Buffett is either. If you didn’t think there was still money in expedited snail mail, think again.
Considering all of this, it is easy to see why Warren Buffett has become such a guru and icon of investing. No doubt investors everywhere are following his lead and reaping the rewards. Mobnish Pabrai, hedge fund investor and one of Buffett’s biggest fans, says that the average person would get an annual return over 20% by just purchasing Buffett purchases after Buffett is forced to disclose his positions. Worth a try to copy the Oracle of Omaha!
mthiessen has no positions in the stocks mentioned above. mthiessen runs a partnerhship that invests in public and private companies. The Motley Fool owns shares of MasterCard. Motley Fool newsletter services recommend Visa. 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.If you have questions about this post or the Fool’s blog network, click here for information.
