Bank of America
Bank of America Corp. (NYSE: BAC) is now a major holding for Berkshire Hathaway after Buffett converted preferred securities purchased shortly after the recession. This 679 million share stake was valued at $19.7 billion as of June 30, and the $29.95 current share price would generate a value of just over $20 billion.
Its consensus target price is currently over 10% higher than the price of $34.77. Bank of America’s stock has a 52-week range of $25.12 to $33.05, and the dividend yield is almost 2%.
Coca-Cola Co. (NYSE: KO) may be a boring stock that has been dead money, but having collected dividends for so long has made Buffett’s cost basis in the beverage giant drift down to almost zero. This 400 million share stake, valued at $17.5 billion at the end of June, is valued at almost $18.5 billion based on a current share price of $46.15.
Coca-Cola’s consensus analyst target is roughly 10% higher than at $50.98. Its 52-week trading range is $41.45 to $48.62, and the current dividend yield is 3.4%.
Wells Fargo & Co. (NYSE: WFC) used to be Buffett’s top stock holding, but he has lightly trimmed that stake in recent quarters to remain under a 10% ownership threshold. Wells Fargo has been a disappointment in the wake of its management fiascos and how it has handled its customers. This 452 million share stake was valued at $26.4 billion at the end of June, but the current share price of $52.70 would have it valued at about $23.8 billion today.
Wells Fargo’s consensus target price of $62.30 feels a bit optimistic after the recent sell-off, but that price is still well under its highs over the past year. Either way, Wall Street analysts on average think there is 18% upside in Walls Fargo, without even considering the 3.2% dividend yield. The 52-week trading range is $50.26 to $66.31.
Berkshire Hathaway’s balance sheet under insurance and other operations also holds a massive investment in Kraft Heinz Co. (NASDAQ: KHC). This has been on the books for some time now and was valued at the end of June as roughly $20.5 billion. It’s been a rough 2018 for food investors, and that has not spared Kraft Heinz. The current share price of $56.00 is against a 52-week range of $54.11 to $82.48. The consensus target price now is $67.14.
If Wall Street analysts are correct in thinking the worst may be over, then there could still be 20% in implied upside ahead. Kraft Heinz’s dividend yield is now even up at almost 4.5% since the share price has dropped.
Chasing whales is far from an assured outcome. There is no free lunch when it comes to investing, even for those investors who just want to own mutual funds or exchange traded funds that track indexes and baskets of stocks. That said, Buffett has been heralded as the greatest investor of the modern era by more than just a few media reports. And even with the stock market at all-time highs, his largest equity holdings are currently believed to still offer upside for investors looking for new ideas.
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