Saturday 3 August 2013

Berkshire Hathaway's holdings in listed companies and their return on equity



Berkshire Hathaway's holdings in listed companies and their return on equity:

I've been spending a bit of time recently reading over large cap US stocks. I tend to look over the following information to get a quick overview of a company: Return On Equity (ROE), Debt to Equity, Price to Earnings Ratio (PE Ratio).

S&P have some good information so I decided to look over Warren Buffett's Berkshire Hathaway's largest listed holdings from their latest 2012 annual shareholder letter and analyse their Return On Equity (click to enlarge image).




Here are several of Berkshire's holdings in which I found their Return On Equity from Standard & Poors data:

Sample Berkshire Hathaway holdings ROE
Year 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003
American Express 23.8 27.8 26.7 16.5 24.3 37.6 35.4 24.2 22.4 20.6
Coca Cola 28 27.4 42.5 30.2 27.5 30.9 30.5 30.2 32.3 33.6
IBM 85.2 73.4 64.9 74.4 58.8 36.6 30.6 24.7 29.3 30.1
Procter & Gamble 13.9 18.5 17.8 17.2 17.9 16.3 22.1 45.7 41.8 37.9
Wal-Mart 23 23.5 22.1 21.2 20.4 20.4 21.2 21.9 22.1 21.3
Wells Fargo 13.1 13.1 11.1 14.3 4.9 17.2 19.8 19.7 19.5 19.3



Note this is only a sample but quick look at these selected companies shows they all have 'high' Return On Equity. By 'high' I mean above 20% with the only exception being Wells Fargo.






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