Warren Buffett Stocks Trading At 52 Week Lows Part 2

by alexg on July 3, 2008

This is the second part on what stocks I am looking at. Part 1 dealt with stocks in the DJIA trading at or near 52 week lows. Next, I will look at stocks  Warren Buffett or Berkshire Hathaway has bought according to Gurufocus.com.

Although studies have shown that following Buffett into stocks has been a good idea, I highly do not recommend following ANY guru into a stock. For example, think about the number of people who blindly followed Mohnish Pabrai or Martin Whitman in the last year. Plus, digging into a company’s 10-K will help anyone looking into a company get a better picture about the company and where its heading. Personally, I have followed the Oracle into a couple of holdings only after checking out the companies story. Finally, when it comes to pharma’s, Warren Buffett has stated he recommends buying a basket of them.

Kraft (KFT)- This one seems to be the one he is buying the most

Wells Fargo (WFC) – High Quality Bank

US Bank (USB) – Another high quality bank with great management

WellPoint (WLP)-  Along with UNH , huge cash flow producers

UnitedHealth Group (UNH) – ^

Ingersoll-Rand (IR)- Also appears on Magic Formula screen

CarMax (KMX)- Haven’t looked into story

Glaxosmithkline (GSK)- Buy as basket

WABCO Holdings (WBC)- Have no idea

Bank of America (BAC)-

Sanofi-Aventis (SNY)- basket

US Gypsum (USG)- Moat will expand as competetors struggle with downturn

Lowes (LOW)- Will recover with economy

Also, there are several companies that Gurufocus does not list. I am guessing this is due to Warren Buffett purchasing the securities before GF was established. From the top of my head….

Moody’s (MCO)

American Express (AXP)

Coca-Cola (KO)

Proctor and Gamble (PG)

Disclaimer: I own PG and USB, I sold out of my holding in UNH a week ago.

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{ 2 comments… read them below or add one }

lily henry 07.04.08 at 9:06 am

Thank you very much for yr information

marketman 07.05.08 at 5:29 pm

I’m still staying away from WFC, BAC or any individual banks, but am slowly dipping my toes into the XLF, where I can spread the risk. I’ll wait quite a bit longer before I throw money away on LOW. UNH and WLP will recover much faster then the builders, banks and home stores (LOW). SNY and GSK are ok, but I prefer ABT.

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