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Warren Buffett’s Best-Performing Stocks of 2016

(So Far)

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• As of this writing, Berkshire Hathaway’s portfolio consists of 45 stocks.

• Excluding relatively small ($100 million or less) stock holdings, here are Berkshire’s top performers of 2016 so far, in ascending order.

• Note: These are total returns, which include any dividends paid during the first quarter.

Buffett’s Stock Portfolio

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10. Phillips 66 (NYSE: PSX): 7.7% total return in 2016• Berkshire has been

aggressively loading up on Phillips 66 in recent quarters.

• The diversity of the company’s operations give it an advantage over peers – in fact, some of the company’s businesses actually do better when oil prices are low.

Paul Adams

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9. Axalta Coating Systems (NYSE: AXTA) : 8.9% total return• This is a relatively new

Buffett stock, purchased in 2015.

• Axalta is one of several recent Buffett investments in the still-recovering U.S. auto industry, which stands to benefit greatly from wage growth and increasing consumer confidence.

Photo Source: Axalta Coating Systems

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8. Kraft Heinz (NYSE: KFT): 9.1% total return• Heinz was a Berkshire

subsidiary, so this investment resulted from the merger between Heinz and Kraft Foods.

• Buffett has said he likes Kraft Heinz because their brands will be around for decades to come.

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7. Coca-Cola (NYSE: KO): 9.3% total return• A longtime Berkshire

favorite, Warren Buffett loves Coca-Cola’s strong brand name, world-class distribution network, and shareholder-friendly management.

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6. International Business Machines (NYSE: IBM): 9.6% total return• IBM is currently

transitioning its emphasis to cloud computing and other up-and-coming areas.

• Buffett loves IBM’s management and likely feels that the company’s new endeavors will be successful.

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5. Charter Communications (NASDAQ: CHTR): 10.9% total return• Berkshire added

significantly to its stake in Charter during 2015.

• Charter is currently in a merger agreement with Time Warner Cable, which could unlock value if approved.

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4. Wal-Mart Stores (NYSE: WMT): 11.8% total return• Wal-Mart is a classic

defensive stock -- its business model works in good times and bad.

• This could explain its outperformance in the current shaky market.

• In fact, Wal-Mart’s revenue actually increased every year throughout the tough 2008-2010 period.

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3. AT&T (NYSE: T): 16.3% total return• The highest-paying

Buffett dividend stock (4.9% yield), Berkshire acquired AT&T shares indirectly when the company merged with DIRECTV.

• Recently, Buffett has actually sold some of his AT&T stake.

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2. Verizon (NYSE: VZ):18.8% total return• Verizon isn’t exactly a

“high-growth” company, but Buffett’s 2014 purchase of the stock is likely a classic Buffett pick – a great company at a fair price.

• In addition, Verizon is a high-paying dividend stock (4.2% yield) with a great track record of dividend growth.

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1. Kinder Morgan (NYSE: KMI): 19.4% total return• Kinder Morgan is the newest

Buffett stock and benefited greatly in early 2016 from the rebound in commodity prices.

• Kinder Morgan has an enormous scale, strong cash flow, and attractive valuation.

• Buffett has a history of buying best-in-breed companies when their sectors get weak, as he did during the financial crisis.

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