What is Warren Buffett Buying Now? – Part 2
Mar 4th, 2007 by Martin Lee
In Warren Buffett’s yearly letter to Berkshire shareholder, he always itemized the major shareholdings.
While I do not think a “buy what Warren Buffett is buying” strategy can be sustainable, here’s a comparison of the 2005 and 2006 letter which was just published on 1st March 2007 anyway.
A look at the major shareholdings (more than $700 million) at the end of 2005 and 2006 shows up these additional names:
1) Ameriprise Financial, Inc
2) Johnson & Johnson
3) POSCO
4) Tesco
5) US Bancorp
6) USG Corp
This does not mean that the above six counters were bought in 2006. (They could have been bought before 2006.) It only meant that the value of Berkshire’s holdings in the 6 holdings had risen above $700 million at the end of 2006.
Of the six, POSCO is a korean steelmaker and at current market price, Berkshire’s stake is already worth 1.3 billion dollars; much more than the 572 million dollars that they paid.
There were also two additional counters with a market value of 1.9 billion that were not itemized in the letter. The reason given by Buffett was that it was because they were still in the process of buying more shares in them.
Buffett says , “I could of course, tell you their names. But then I would have to kill you“.
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