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Here Is How Warren Buffett's Top Holdings Generate Outperformance

With all respect, Warren Buffett is the idol for the common investor. He came out of the middle class and created a fortune of over 50 billion out of nothing.

But his performance lacks behind the market. Does his strategy still work? Attached you will find a detail overview of his 10 top holding. Most of them underperformed the market in recent years.

The top holdings are shown in the table below, realized a yearly return of just 6.62%. Check out the list below where you can also find more statistics.

Recently, I wrote about Warren Buffett's latest portfolio movements. You can read the article here. Warren Buffett's Latest Portfolio Transactions.

Here are Warren Buffett's top holdings in detail...

Intl. Business Machines -- Yield: 3.65%

Intl. Business Machines (NYSE:IBM) employs 377,757 people, generates revenue of $81,741.00 million and has a net income of $13,364.00 million. The current market capitalization stands at $139.35 billion.

Intl. Business Machines’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20,345.00 million. The EBITDA margin is 24.89% (the operating margin is 19.51% and the net profit margin 16.35%).

Financials: The total debt represents 36.10% of Intl. Business Machines assets and the total debt in relation to the equity amounts to 279.69%. Due to the financial situation, a return on equity of 102.29% was realized by Intl. Business Machines.

Twelve trailing months earnings per share reached a value of $13.62. Last fiscal year, Intl. Business Machines paid $5.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.49, the P/S ratio is 1.67 and the P/B ratio is finally 9.64. The dividend yield amounts to 3.65%.

Stock Charts:

Long-Term Stock Price Chart of Intl. Business Machines (IBM)
Long-Term Stock Price Chart of Intl. Business Machines (IBM)
Long-Term Dividend Payment History of Intl. Business Machines (IBM)
Long-Term Dividend Payment History of Intl. Business Machines (IBM)
Long-Term Dividend Yield History of Intl. Business Machines (IBM)
Long-Term Dividend Yield History of Intl. Business Machines (IBM)


Procter & Gamble -- Yield: 3.24%

Procter & Gamble (NYSE:PG) employs 110,000 people, generates revenue of $76,279.00 million and has a net income of $8,930.00 million. The current market capitalization stands at $218.09 billion.

Procter & Gamble’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15,979.00 million. The EBITDA margin is 20.95% (the operating margin is 15.46% and the net profit margin 11.71%).

Financials: The total debt represents 23.43% of Procter & Gamble assets and the total debt in relation to the equity amounts to 48.62%. Due to the financial situation, a return on equity of 13.23% was realized by Procter & Gamble.

Twelve trailing months earnings per share reached a value of $3.03. Last fiscal year, Procter & Gamble paid $2.59 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.82, the P/S ratio is 2.90 and the P/B ratio is finally 3.62. The dividend yield amounts to 3.24%.

Stock Charts:

Long-Term Stock Price Chart of Procter & Gamble (PG)
Long-Term Stock Price Chart of Procter & Gamble (PG)
Long-Term Dividend Payment History of Procter & Gamble (PG)
Long-Term Dividend Payment History of Procter & Gamble (PG)
Long-Term Dividend Yield History of Procter & Gamble (PG)
Long-Term Dividend Yield History of Procter & Gamble (PG)


Coca-Cola -- Yield: 3.10%

Coca-Cola (NYSE:KO) employs 123,200 people, generates revenue of $44,294.00 million and has a net income of $7,366.00 million. The current market capitalization stands at $195.88 billion.

Coca-Cola’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,075.00 million. The EBITDA margin is 27.26% (the operating margin is 19.70% and the net profit margin 16.63%).

Financials: The total debt represents 49.07% of Coca-Cola assets and the total debt in relation to the equity amounts to 173.02%. Due to the financial situation, a return on equity of 26.31% was realized by Coca-Cola.

Twelve trailing months earnings per share reached a value of $1.67. Last fiscal year, Coca-Cola paid $1.32 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.14, the P/S ratio is 4.42 and the P/B ratio is finally 7.65. The dividend yield amounts to 3.10%.

Stock Charts:

Long-Term Stock Price Chart of Coca-Cola (KO)
Long-Term Stock Price Chart of Coca-Cola (KO)
Long-Term Dividend Payment History of Coca-Cola (KO)
Long-Term Dividend Payment History of Coca-Cola (KO)
Long-Term Dividend Yield History of Coca-Cola (KO)
Long-Term Dividend Yield History of Coca-Cola (KO)


Wells Fargo & Company -- Yield: 3.00%

Wells Fargo & Company (NYSE:WFC) employs 264,700 people, generates revenue of $49,277.00 million and has a net income of $23,276.00 million. The current market capitalization stands at $261.32 billion.

Wells Fargo & Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $40,501.00 million. The EBITDA margin is 47.06% (the operating margin is 39.09% and the net profit margin 27.05%).

Financials: The total debt represents 16.62% of Wells Fargo & Company assets and the total debt in relation to the equity amounts to 153.92%. Due to the financial situation, a return on equity of 12.78% was realized by Wells Fargo & Company.

Twelve trailing months earnings per share reached a value of $4.12. Last fiscal year, Wells Fargo & Company paid $1.48 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.10, the P/S ratio is 2.95 and the P/B ratio is finally 1.49. The dividend yield amounts to 3.00%.

Stock Charts:

Long-Term Stock Price Chart of Wells Fargo & Company (WFC)
Long-Term Stock Price Chart of Wells Fargo & Company (WFC)
Long-Term Dividend Payment History of Wells Fargo & Company (WFC)
Long-Term Dividend Payment History of Wells Fargo & Company (WFC)
Long-Term Dividend Yield History of Wells Fargo & Company (WFC)
Long-Term Dividend Yield History of Wells Fargo & Company (WFC)


Kraft Heinz Company -- Yield: 2.99%

Kraft Heinz Company (NASDAQ:KHC) employs 42,000 people, generates revenue of $18,338.00 million and has a net income of $647.00 million. The current market capitalization stands at $95.17 billion.

Kraft Heinz Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,379.00 million. The EBITDA margin is 18.43% (the operating margin is 14.39% and the net profit margin 3.53%).

Financials: The total debt represents 20.45% of Kraft Heinz Company assets and the total debt in relation to the equity amounts to 38.10%. Due to the financial situation, a return on equity of -0.82% was realized by Kraft Heinz Company.

Twelve trailing months earnings per share reached a value of $-0.32. Last fiscal year, Kraft Heinz Company paid $1.70 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 5.10 and the P/B ratio is finally 1.62. The dividend yield amounts to 2.99%.

Stock Charts:

Long-Term Stock Price Chart of Kraft Heinz Company (KHC)
Long-Term Stock Price Chart of Kraft Heinz Company (KHC)
Long-Term Dividend Payment History of Kraft Heinz Company (KHC)
Long-Term Dividend Payment History of Kraft Heinz Company (KHC)
Long-Term Dividend Yield History of Kraft Heinz Company (KHC)
Long-Term Dividend Yield History of Kraft Heinz Company (KHC)


Wal-Mart Stores -- Yield: 2.98%

Wal-Mart Stores (NYSE:WMT) employs 2,200,000 people, generates revenue of $482,130.00 million and has a net income of $15,080.00 million. The current market capitalization stands at $214.98 billion.

Wal-Mart Stores’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $33,559.00 million. The EBITDA margin is 6.96% (the operating margin is 5.00% and the net profit margin 3.13%).

Financials: The total debt represents 25.07% of Wal-Mart Stores assets and the total debt in relation to the equity amounts to 62.12%. Due to the financial situation, a return on equity of 18.15% was realized by Wal-Mart Stores.

Twelve trailing months earnings per share reached a value of $4.56. Last fiscal year, Wal-Mart Stores paid $1.96 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.76, the P/S ratio is 0.45 and the P/B ratio is finally 2.68. The dividend yield amounts to 2.98%.

Stock Charts:

Long-Term Stock Price Chart of Wal-Mart Stores (WMT)
Long-Term Stock Price Chart of Wal-Mart Stores (WMT)
Long-Term Dividend Payment History of Wal-Mart Stores (WMT)
Long-Term Dividend Payment History of Wal-Mart Stores (WMT)
Long-Term Dividend Yield History of Wal-Mart Stores (WMT)
Long-Term Dividend Yield History of Wal-Mart Stores (WMT)


Johnson & Johnson -- Yield: 2.79%

Johnson & Johnson (NYSE:JNJ) employs 127,100 people, generates revenue of $70,074.00 million and has a net income of $15,409.00 million. The current market capitalization stands at $298.60 billion.

Johnson & Johnson’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24,922.00 million. The EBITDA margin is 35.57% (the operating margin is 27.39% and the net profit margin 21.99%).

Financials: The total debt represents 14.89% of Johnson & Johnson assets and the total debt in relation to the equity amounts to 27.91%. Due to the financial situation, a return on equity of 21.87% was realized by Johnson & Johnson.

Twelve trailing months earnings per share reached a value of $5.48. Last fiscal year, Johnson & Johnson paid $2.95 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.65, the P/S ratio is 4.24 and the P/B ratio is finally 4.17. The dividend yield amounts to 2.79%.

Stock Charts:

Long-Term Stock Price Chart of Johnson & Johnson (JNJ)
Long-Term Stock Price Chart of Johnson & Johnson (JNJ)
Long-Term Dividend Payment History of Johnson & Johnson (JNJ)
Long-Term Dividend Payment History of Johnson & Johnson (JNJ)
Long-Term Dividend Yield History of Johnson & Johnson (JNJ)
Long-Term Dividend Yield History of Johnson & Johnson (JNJ)


Phillips 66 -- Yield: 2.59%

Phillips 66 (NYSE:PSX) employs 14,000 people, generates revenue of $98,975.00 million and has a net income of $4,280.00 million. The current market capitalization stands at $45.99 billion.

Phillips 66’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,514.00 million. The EBITDA margin is 5.57% (the operating margin is 4.47% and the net profit margin 4.32%).

Financials: The total debt represents 18.29% of Phillips 66 assets and the total debt in relation to the equity amounts to 38.47%. Due to the financial situation, a return on equity of 18.89% was realized by Phillips 66.

Twelve trailing months earnings per share reached a value of $7.74. Last fiscal year, Phillips 66 paid $2.18 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.13, the P/S ratio is 0.46 and the P/B ratio is finally 1.98. The dividend yield amounts to 2.59%.

Stock Charts:

Long-Term Stock Price Chart of Phillips 66 (PSX)
Long-Term Stock Price Chart of Phillips 66 (PSX)
Long-Term Dividend Payment History of Phillips 66 (PSX)
Long-Term Dividend Payment History of Phillips 66 (PSX)
Long-Term Dividend Yield History of Phillips 66 (PSX)
Long-Term Dividend Yield History of Phillips 66 (PSX)


U.S. Bancorp -- Yield: 2.52%

U.S. Bancorp (NYSE:USB) employs 65,433 people, generates revenue of $12,402.00 million and has a net income of $5,933.00 million. The current market capitalization stands at $71.98 billion.

U.S. Bancorp’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,455.00 million. The EBITDA margin is 47.06% (the operating margin is 39.96% and the net profit margin 29.53%).

Financials: The total debt represents 14.21% of U.S. Bancorp assets and the total debt in relation to the equity amounts to 129.97%. Due to the financial situation, a return on equity of 14.13% was realized by U.S. Bancorp.

Twelve trailing months earnings per share reached a value of $3.17. Last fiscal year, U.S. Bancorp paid $1.01 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.79, the P/S ratio is 3.50 and the P/B ratio is finally 1.74. The dividend yield amounts to 2.52%.

Stock Charts:

Long-Term Stock Price Chart of U.S. Bancorp (USB)
Long-Term Stock Price Chart of U.S. Bancorp (USB)
Long-Term Dividend Payment History of U.S. Bancorp (USB)
Long-Term Dividend Payment History of U.S. Bancorp (USB)
Long-Term Dividend Yield History of U.S. Bancorp (USB)
Long-Term Dividend Yield History of U.S. Bancorp (USB)


M&T Bank Corporation -- Yield: 2.52%

M&T Bank Corporation (NYSE:MTB) employs 16,331 people, generates revenue of $3,170.84 million and has a net income of $1,079.67 million. The current market capitalization stands at $18.33 billion.

M&T Bank Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,054.58 million. The EBITDA margin is 44.02% (the operating margin is 35.88% and the net profit margin 23.13%).

Financials: The total debt represents 10.41% of M&T Bank Corporation assets and the total debt in relation to the equity amounts to 79.06%. Due to the financial situation, a return on equity of 7.58% was realized by M&T Bank Corporation.

Twelve trailing months earnings per share reached a value of $7.19. Last fiscal year, M&T Bank Corporation paid $2.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.51, the P/S ratio is 3.79 and the P/B ratio is finally 1.19. The dividend yield amounts to 2.52%.

Stock Charts:

Long-Term Stock Price Chart of M&T Bank Corporation (MTB)
Long-Term Stock Price Chart of M&T Bank Corporation (MTB)
Long-Term Dividend Payment History of M&T Bank Corporation (MTB)
Long-Term Dividend Payment History of M&T Bank Corporation (MTB)
Long-Term Dividend Yield History of M&T Bank Corporation (MTB)
Long-Term Dividend Yield History of M&T Bank Corporation (MTB)
Portfolio Ratios of Warren Buffett's Top Holdings
(click to enlarge), Source: buyupside.com

Portfolio Development of Warren Buffett's Top Holdings
(click to enlarge), 
Source: buyupside.com

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