Rank Stock # of Shares
(as of 6/30/09)
1 Coca-Cola (KO) 200.0 21.60% 2 Wells Fargo (WFC*) 320.0 19.56% 3 American Express (AXP) 151.6 12.28% 4 Procter & Gamble (PG*) 79.1 9.83% 5 Kraft Foods Inc. (KFT) 106.7 6.34% 6 Wesco Financial Corp. (WSC) 5.7 4.32% 7 Wal-Mart (WMT) 39.0 4.26% 8 US Bancorp (USB) 69.0 3.51% 9 ConocoPhillips (COP) 34.2 3.43% 10 Johnson & Johnson (JNJ) 23.9 3.06% 11 Moody's Corp. (MCO) 30.8 1.80% 12 Washington Post Co. (WPO) 1.7 1.51% 13 Nike Inc. (NKE) 7.6 1.10% 14 M&T Bank Corp. (MTB) 5.6 0.87% 15 Republic Services Inc. (RSG) Added to Position! 10.8 0.62% 16 USG Corp. (USG) 17.1 0.58% 17 Costco (COST) 4.3 0.51% 18 Nalco Holding Co. (NLC) 9.0 0.43% 19 Comcast (CMCSK) 12.0 0.42% 20 Iron Mountain Inc. (IRM) Added to Position! 7.8 0.42% 21 Ingersoll-Rand (IR) 5.6 0.39% 22 CarMax Inc. (KMX) 7.7 0.38% 23 Nestle S.A. (NSRGY.PK) 3.4 0.34% 24 Lowe's (LOW) 6.5 0.31% 25 Torchmark Corp. (TMK) 2.8 0.30% 26 Sanofi-Aventis (SNY) 3.9 0.29% 27 General Electric (GE) 7.8 0.28% 28 Becton Dickinson & Co. (BDX)Added to Position! 1.7 0.27% 29 NRG Energy, Inc. (NRG) 6.0 0.25% 30 United Parcel Service, Inc. (UPS*) 1.4 0.18% 31 Bank of America (BAC*) 5.0 0.18% 32 Home Depot (HD*) 2.8 0.18% 33 GlaxoSmithKline (GSK) 1.5 0.11% 34 Gannett Co., Inc. (GCI) 1.7 0.06% 35 Exxon Mobil (XOM) 0.4 0.06% 36 Comdisco Holding Co. Inc. (CDCO.OB) 1.5 0.03% Acq Burlington Northern Santa Fe (BNI)** 0.0 0.00%
Sold This Quarter:
xx SunTrust Banks Inc. (STI) Sold this position! 0.0 0.00% xx Travelers Insurance (TRV) Sold this position! 0.0 0.00% xx Unitedhealth Group, Inc. (UNH) Sold this position! 0.0 0.00% xx WellPoint Inc. (WLP) 0.0 0.00%
Sold Last Quarter:
xx Norfolk Southern Corp. (NSC) Sold this position! 0.0 0.00% xx Union Pacific Corp. (UNP) Sold this position! 0.0 0.00% xx WABCO Holdings Inc. (WBC) Sold this position! 0.0 0.00% xx Eaton Corp. (ETN) Sold this position! 0.0 0.00%
**Note that, since this 09-30-2009 filing, that Warren Buffett has moved to acquire all Burlington Northern outstanding shares to make it a fully-owned entity of Berkshire Hathaway.
At the beginning of 1996, Berkshire Hathaway completed the purchase of GEICO, Inc.—at that time, the seventh largest automobile insurer in the country. It was the culmination of a long and profitable relationship.
Among those who have followed Warren Buffett over the years, GEICO is a familiar name. The company holds a revered place in Berkshire Hathaway. Buffett was introduced to GEICO in 1951 by his teacher, Ben Graham, who was then a director of the company. In true Buffett fashion, Warren traveled to GEICO's headquarters one cold Saturday morning in January to learn more about the business. Lorimer Davidson, who was then assistant to the president and later became CEO, gave Buffett a quick education about GEICO's competitive advantage.When he returned to Omaha to work at his father's brokerage firm, Buffett focused his efforts on buying shares of GEICO for his clients. He even wrote a research report about GEICO in The Commercial and Financial Chronicle titled "The Security I Like Best." By year-end 1951, young Buffett had 65 percent of his net worth—$10,000—invested in GEICO.
In the early 1970s, GEICO ran into problems. Several years of underpricing its policies had produced losses that almost bankrupted the company. Buffett, however, applying his own tenets, was undeterred. He was confident that he was looking at a solid company experiencing temporary difficulties that made its stock price a bargain, and he began acquiring shares. By 1980, through Berkshire Hathaway, he had accumulated 33 percent of GEICO for $45.7 million.
Between 1980 and 1996, the equity returns in GEICO's portfolio achieved an average annual return of 24.7 percent compared to the market's return of 17.8 percent. "These are not only terrific figures," says Buffett, "but, fully as important, they have been achieved in the right way.
Most people who have followed Warren Buffett's career know he is strong on the Coca-Cola Company. The big bets Buffett placed on Coca-Cola over the years paid off handsomely. In 1988, when Buffett began buying the stock, Coca-Cola represented 20.7 percent of the common stock portion of Berkshire's portfolio. From 1991 through 1997, Coca-Cola's position in the portfolio ranged from 34.2 percent to 43 percent. And how well did Coca-Cola perform during the ten years from 1988 through 1997? Almost double the regular market: 34.7 percent average return compared to 18.8 percent. It was highly profitable for Buffett to concentrate his position around Coca-Cola. He made a big bet on a highprobability event.