Everyone likes to see the Warren Buffett stock holdings, particularly when there are changes. He has a different timeframe than most investors for Berkshire Hathaway Inc. (NYSE: BRK-B, BRK-A) because it’s “forever.” But now that we are entering Q2, 2010, we wanted to see which of the Buffett portfolio stocks have the most upside for the next year based upon newer consensus analyst price targets. This list is the same in size of the top 11 stocks with the most upside, but it differs from Q1 because so many stocks have performed well along with the broad market. The eleven Q2-2010 list of stocks with the highest upside to analyst price targets are Bank of America Corporation (NYSE: BAC), The Coca-Cola Company (NYSE: KO), ConocoPhillips (NYSE: COP), Gannett Co., Inc. (NYSE: GCI), Iron Mountain Inc. (NYSE: IRM), Nalco Holding Co. (NYSE: NLC), Republic Services Inc. (NYSE: RSG), Sanofi-Aventis (NYSE: SNY), UnitedHealth Group, Inc. (NYSE: UNH), and WellPoint Inc. (NYSE: WLP).
Many of the Buffett stocks did not make the list this quarter due to performance and shares rising up too close to or above their consensus price targets. Those were Comcast Corporation (NASDAQ: CMCSA), General Electric Co. (NYSE: GE), Kraft Foods Inc. (NYSE: KFT), SunTrust Banks, Inc. (NYSE: STI), and US Bancorp (NYSE: USB). Even his favorite bank, Wells Fargo & Company (NYSE: WFC), did not make the list due to its performance in Q1. Here was the year to date performance of each: Comcast rose 12.4%; GE rose 21.8%; Kraft rose by 12.7%; SunTrust 33.9%; US Bancorp rose by 16.7%; and Wells Fargo rose by 16.4%. For that matter, Buffett’s own Berkshire Hathaway “A-Shares” rose by over 23%.
Many value investors chase the Buffett stocks, and his most recent full list of latest holdings is here. What we looked for was the current price based upon the April 1 close versus the 1-year mean price target from Thomson Reuters. We then showed what the implied upside was for these stocks to the mean price target. What we did not add into the equation was the dividend yield into the returns, but we did include the dividend yield after showing the expected or implied return to the analyst consensus targets. Lastly, we have offered some analysis on each stock to explain the upside or for expanded coverage ahead.