Warren Buffett’s Berkshire (BRK.B) portfolio lost 2.81% in the last week; down 9.59% year to date

Warren Buffett’s portfolio of 38 publicly traded stocks, which are owned by his Berkshire Hathaway (BRK.A and BRK.B), fell 2.81% in the last week, 8.73% in the last month, 9.59% year to date and 10.52% in the last 12 months. Their total return averaged 5.15% a year over the last three years. The stocks have an expected three year annualize total return of 21.48%, according to data on Morningstar.com where I maintain a watch list for the portfolio.

At the end of the week, the stocks currently in the portfolio traded for an average of 72% of the Morningstar estimated fair value for the stocks it rates. Of the 38 stocks in the Berkshire portfolio, Morningstar currently rates 33. The portfolio’s average PEG (price earnings ratio/projected growth rate) ratio is 1.25.

BRK.B closed Friday at $4,016.50, or about 1/30th of BRK.A. In the last week, BRK.B’s total return fell 3.31%; in the last month, 6.48%; and year to date, 15.19%. In the last 12 months, the total return on the stock has been 12.83%, bringing its three year average total return to 13.12%. Its expected three year average total return is 18.91%. There is no PEG ratio for the stock.

Morningstar estimates BRK.B’s fair value is $5,100 and that it is trading for 79% of fair value.

As previously noted, I’ve also created watch lists on Morningstar for the widely followed Dow Jones Industrials index and for 26 undervalued stocks that pay relatively high dividends.

In the last week, the Dow Jones Industrials’ 30 stocks in the index fell an average of 3.98%. This is different from the decline in the index because I don’t weight the stocks. In the last month, these stocks were down 8.88%, year to date they’re down 10.20% and in the last year they’re down 7.2%. They’ve gained an average of 8.4% a year over the last three years, and their expected annualized total returns over the next three years is 19.53%. Their average PEG ratio is a modest 1.2.

Morningstar currently rates 28 of the 30 Dow Jones Industrials, and the rated stocks are trading for 75% of estimated fair value, which means the market is pretty undervalued in the eyes of Morningstar’s analysts. Two companies in the DJ index, Boeing (BA) and General Motors (GM), currently aren’t rated by the independent stock market research firm.

The Dividend 26, as I call them, had a relatively good week, losing only 1.83%. In the last month their total returns fell 8.59%; year to date, 17.25%; over the last 12 months, 27.31% and over the last three years their average total return has been a negative 3.23% a year. Their expected annualized returns over the next three years is 25.25%, and their peg ratio is 1.35.

Twenty three of the Dividend 26 are rated by Morningstar, and they are trading for an average of 67% of estimated fair value.

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