Johnson & Johnson
Industry: Consumer Health
Berkshire Shares: 29 million shares
Returns: -6% 1-year return vs. a flat Dow,
-2% 5-year return vs. -11% for Dow
Johnson & Johnson (NYSE:JNJ) is one of the biggest holdings in the entire Berkshire Hathaway portfolio. While many other health care stocks are in the lineup, the 29 million shares of J&J add up to a position of roughly $1.8 billion dollars. Unlike GSK, however, J&J is a health care company focused on consumers and drug stores as much as doctors and hospitals. That’s because J&J is behind big brands including Tylenol and Band-Aids, just to name a few polestars of its consumer health division. Reliable sales from these products adds up to a healthy yield of 3.9% at current valuations. Dividends have been paid since 1944, and a dividend increase announced just a few weeks ago proves Johnson & Johnson cares about keeping income-oriented investors happy.
However, FYI: Buffett sold some of his position in J&J in the latest filing. At its peak, this position was 62 million shares strong in the Berkshire portfolio, but is now less than half of that.