Week 351 - Members of “The 2 and 8 Club” in the Berkshire Hathaway Stock Portfolio

Situation: We would all like to know what Warren Buffet is up to, and why (see Week 331). This week we’ll look at the 4 members of “The 2 and 8 Club” that are in the Berkshire Hathaway stock portfolio (see Table). Two of those, Coca-Cola (KO) and Wells Fargo (WFC) have long been among the top 5 holdings but the IBM holding is being reduced. The 4th company, United Parcel Service (UPS), is among several air transportation stocks recently purchased.

Mission: Provide analytics on those 4 stocks, and appropriate benchmarks, by using our Standard Spreadsheet.

Execution: see Table.

Bottom Line: Companies that pay a strong and growing dividend have always been among Warren Buffett’s favorites. The problem is that such robust returns to the shareowner are rarely sustainable. Two of these companies (KO and WFC) have had a large role in the Berkshire Hathaway portfolio for some time, all the while maintaining a high dividend yield and high dividend growth rate.  

Risk Rating: 6 (where 10-Yr US Treasury Notes = 1, S&P 500 Index = 5, gold bullion = 10)

Full Disclosure: I dollar-cost average into KO and IBM.

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