9 Stocks Warren Buffett and Hedge Funds Love

Warren Buffett (NYSE:BRKA) often marches to the beat of his own drum.  One of his many well-known quotes is “Be fearful when others are greedy, and to be greedy only when others are fearful.”  As many successful investors realize, it often pays to be on the opposite side of the boat.  However, sometimes even legendary investors find themselves on the same side as the general market.

At the conclusion of each quarter, Goldman Sach’s (NYSE:GS) Chief Equity Strategist David Kostin creates a list of stocks that are the most popular with hedge funds.  Listed below, are the nine most popular stocks with hedge funds that are also found in Berkshire Hathaway’s portfolio, as of the end of the third quarter.

International Business Machines (NYSE:IBM):  This tech service giant is a favorite among hedge funds, with 13 funds holding the stock in their top ten holdings.  Warren Buffett recently made headlines by announcing a new $11 billion position in the company.  Measuring by holding value, IBM is Berkshire’s second largest position.  Shares are up 23% year-to-date.

Mastercard Inc. (NYSE:MA):  17 hedge funds hold Mastercard in their top ten holdings.  Berkshire held 405,000 shares of the credit card company at the end of the third quarter.  Shares have surged nearly 60% year-to-date.  Berkshire also holds over 150 million shares of American Express Co. (NYSE:AXP).

Visa Inc. (NYSE:V):  19 hedge funds hold Visa shares in their top ten holdings.  At the end of the third quarter, Berkshire announced a new 2.3 million share position in Visa.  Shares have increased 32% year-to-date.

Johnson & Johnson (NYSE:JNJ):  14 hedge funds hold J&J in their top ten holdings.  Measuring by holding value, J&J was Berkshire’s seventh largest position at the end September.  However, in the third quarter, Berkshire reduced their position by 5.2 million shares.  Shares have edged 1.6% higher this year.

Exxon Mobil Corp. (NYSE:XOM):  18 hedge funds hold Exxon shares in their top ten holdings.  Warren Buffett has reduced his position in Exxon over the years, but still maintains 421,800 shares of the oil giant.  Shares have gained 5.2% for the year.  Buffett also holds 29.1 million shares in ConocoPhillips (NYSE:COP).

Wells Fargo & Co. (NYSE:WFC):  19 hedge funds hold Wells Fargo in their top ten holdings.  The bank is a long-time favorite of Warren Buffett, and is the third largest stock position as of the end of the third quarter.  Berkshire added 9 million shares in the third quarter, bringing its overall position to 361.4 million shares.  Late Tuesday, the bank received a downgrade from Standard & Poors.  Shares are down 22% this year.

CVS Caremark Corp. (NYSE:CVS):  14 hedge funds hold CVS shares in their top ten holdings.  At the end of September, Berkshire announced a new 5.7 million share position in the health care company.  Shares have increased 8% year-to-date.

Procter & Gamble Co. (NYSE:PG):  14 hedge funds hold P&G in their top ten holdings.  Judging by holding value, P&G was Berkshire’s fifth largest  portfolio position in the third quarter, with nearly 77 million shares.  Shares have fallen nearly 3% this year.

Wal-Mart Stores Inc.  (NYSE:WMT):  14 hedge funds hold Wal-Mart shares in their top ten holdings.  Measuring by holding value, Wal-Mart was Berkshire’s eighth largest position in the third quarter, with 39 million shares held.  Shares have gained almost 8% year-to-date.

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