Warren Buffett's Berkshire Hathaway (BRK.A, BRK.B) liquidated positions in a number of high-profile companies during the fourth quarter, but the Oracle of Omaha's huge stake in Coca-Cola (KO) appears to have caused his portfolio to lose its fizz so far in 2011.

Berkshire Hathaway is up just 2.58% through Feb. 15, according to an analysis by Bespoke Investment Group, lagging the broader S&P 500 ($INX) by fully 3 percentage points. Berkshire dumped its stakes in Bank of America (BAC), Comcast (CMCSA), Nike (NKE) and Lowe's (LOW), according to a regulatory filing made Monday, but held firm in some of its biggest plays -- which helped cause the portfolio's underperformance so far this year, according to Bespoke.

Based on data filed by Berkshire Hathaway, Coca-Cola "has no doubt hurt Buffett's returns this year," Bespoke reports. Coke, a component of the Dow Jones Industrial Average ($INDU), is not only Berkshire Hathaway's biggest holding, accounting for 23.4% of the portfolio, but has been the firm's worst-performing investment, declining nearly 4% year-to-date, according to Bespoke (see table).



Interestingly, Coke's fellow Dow component General Electric (GE) has been Buffett's best investment in 2011, adding more than 17%. Buffett's commitment to financial stocks has also paid off, Bespoke notes. Wells Fargo (WFC), Berkshire's second-biggest position, is up nearly 9% through Feb. 15, while Dow component American Express (AXP) gained 7.6%.

Buffett's biggest winners after GE were continuing bets on credit-rating firm Moody's (MCO), newspaper publisher Gannet (GCI) and Exxon Mobil (XOM) (yet another Dow stock), all of which rose more than 10%.

Bespoke Investment Group also put together a sector breakdown of Berkshire Hathaway's portfolio based on the most recent data and, lo and behold, financial stocks account for more than 45% of all holdings. Consumer staples come in second, making up more than 43% of the total pie. Note the large positions in consumer stocks (and Dow components) Procter & Gamble (PG), Kraft Foods (KFT) and Wal-Mart (WMT) in the table above.

Lastly, Berkshire Hathaway is most underweight in technology stocks. Bespoke notes that it has no exposure to the sector even though it's the biggest part of the S&P 500. "Buffett has said numerous times in the past that he doesn't invest in what he doesn't understand, and that is one reason he gives for not investing in the technology sector," says Bespoke. "In this case, he's putting his money where his mouth is."


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Dereck

Major Fraud Alert


The entire Federal Banking System under FirstGov has been "Consumed" and "Levied" by way of a Maryland State Circuit/District Court Ruled “Appropriation and Garnishment” of all Future Earnings prior to and after 2004 against Bank Of America by way of the F.D.I.C. Regulations Prohibiting failing Banks from Merging with other failing Banks between the Dates of 08/04/08 and 10/09/09.

Bank of America violated the 21st Century Act: Final Amendments to Regulation CC Section: http://www.federalreserve.gov/boarddocs/press/bcreg/2004/20040726/attachment.pdf

seeking reimbursement of Credit, Loan, and Finance Balances as a "Bank Entity" and not a "Nonbank Consumer" as specified on Pages 85 and 86.

The person they sued through a LLC. Debt Collection Company and Law Firm was the "World Fortune Owner" who "Counterclaimed" and won.

Now all Contracts of any Corporations (Including Employment) under the "Controlling Interest" of any Investment Bank Worldwide are "Null and Void", and are also under the stipulated Rules and Regulations of an "Closely-held S Corporation rendering all Employed under Legal Actions against “Domination”, and also means that "No Corporation can hold Shares" (Proving Warren Buffetts claims of Corporate Stock purchases Fraud) officially making every Stock Exchange on the Planet a "Ponzi Scheme" by default.

Businesses owned by the States (Public Corporations) are being sold Stock Shares by Corporations also under the Federal Banking System in this Worldwide "Ponzi Scheme". The World Fortune Company Merrick Inc. Sweden is dissolving Millions and Billions of Dollars from "All Levels of Government"in the U.S. of Financing based upon Years of "negligent inaction" involving this case.

The Federal Government has already been forced to discontinue supplying the Financing States use to pay their debts, Persons in Government Offices may want to begin to take their jobs more seriously, these are different times from 10 Years ago and you will not be accepted civil servants here just because you say you are here to do the right thing.

May 29 2011 at 1:18 AM Report abuse rate up rate down Reply
chris rex

Mr. Buffet is weird. He feels his financial obligation to his own off spring ended when they completed their last degree. He feels that continued economic support would stifle their drive and desire to succeed. He provided them with a solid foundation and they can now build their own house. He reminds me of the protagonist in Mark Twain's short story Luck. I find this very amusing and a source of comfort. It could very well be true.

February 22 2011 at 10:04 AM Report abuse +2 rate up rate down Reply
phoebus61

I'm just curious. Doesn't Buffett have anyone who works for him in the investment division "understand" technology? I mean, really, how can you NOT have shares in Google or Apple?

February 17 2011 at 3:24 PM Report abuse -1 rate up rate down Reply
Robear

WAAAAA friggen WAAAA.

February 17 2011 at 12:28 PM Report abuse -1 rate up rate down Reply
Gumby

IT IS ALCOA, STUPID!!!!!!

February 17 2011 at 12:19 PM Report abuse rate up rate down Reply
Gumby

same goes for AMD AMD can make same chips as Intel yet sell them for deep discounts in order to stay alive. AMD is simply oppressed by computer buyers who want to keep Intel propped up forever... Why Warren Buffet fails to see value in AMD really boggles my mind! What Warren owns do not really make any difference to our economy well being.. It was always ALCOA,AMD and others who are unsung heroes that keep America strong but their stocks still go begging... Our economy is collapsing becaue investors invest in wrong ones..

February 17 2011 at 11:11 AM Report abuse -1 rate up rate down Reply
Gumby

Warren Buffet knows better than not to invest in ALCOA because aluminium prices had been artificially suppressed for decades past to shore up industrial users like Boeings and General Electrics of the world bottom lines.. Aluminium selling for barely over $1 a pound much less than what you pay for lowly chuck ground beef for your greasy burgers... Warren Buffet is just conforming with the industrial bigwigs who still dictates the price of aluminium... Copper, moly, nickel, gold, zinc got away from the grip of industrial users. Why aluminium stay stuck at $1 a pound, I couldnt udnerstand... even worse, Warren Buffet should easily see a bargain in ALCOA stock price but he never owns some. Oh, my God!

February 17 2011 at 11:08 AM Report abuse +2 rate up rate down Reply
billstevenson37

I'm very torn on your article. Using 6 weeks of stock movement as a way of drawing us into an article on what's in Berkshire's portfolio is great writing in the sense that you make the data more entertaining, but trying to guage a long term investor doesn't really mean much over that short a period. To someone with that horizon, the estimate of fair value is far more important than a few weeks, or even a few years, of price movement.

February 16 2011 at 11:34 PM Report abuse +4 rate up rate down Reply
sabcody

HA I think it should be illegal for any business NOT to have a Coke machine sitting outside of their building! I mean you can take a regular plate of beans and cornbread then sit a Coke beside it and you have a VERY BRIGHT meal! HA HA

February 16 2011 at 10:51 PM Report abuse rate up rate down Reply
1 reply to sabcody's comment
onebluebrick

ha ha

February 17 2011 at 10:34 AM Report abuse rate up rate down Reply
savemycountry911

Obama wants to buy the world some coke and keep it company.

February 16 2011 at 9:57 PM Report abuse -2 rate up rate down Reply