Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Translating Buffett's Latest Bets


The Oracle of Omaha sees us as a bunch of cheapskates.

As for the latest filing, what caught our attention is how hard the legend has now moved into Walmart (WMT).

In fact, the man nearly doubled his holdings to 37.8 million shares on September 30 from 19.9 million shares at the end of June.

Buffett would seem to be making a long-term call, in part, on the newfound frugality of the American consumer. There are those smart strategists that believe men and women, after this economic downturn, will fundamentally shift how they think about saving and spending.

This is a change that appears to transcend socio-economic status.

According to data tracker NPD Group, as highlighted in BusinessWeek, visits to fast-food restaurants declined 3% over the summer, the worst performance in decades. Your white-shoe friends aren't feeling any more carefree with their cash, as evidenced in "Global Champagne Sales Are Going Flat" in The New York Times.

A community of tight-fisted consumers would benefit discounters like Walmart. At least Buffett seems to think so.

Another noticeable change in his portfolio: a stake of 1.28 million shares on September 30 in Exxon (XOM), up from 854,490 in June.

We understand why Buffett likes Exxon, the world's largest refiner. Analysts point to its industry-leading profits and stellar financial health.

"Also, if there is inflation, which Buffett is concerned with, the price of oil goes up and that helps Exxon," says Howard.

Buffett also reported new stakes in Nestle (NSRGY), The Travelers Companies (TRV), and Republic Services (RSG). He increased his stake in Wells Fargo (WFC).

Register For Minyanville's Holiday Festivus '09 Here
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos