Stock Owned by both T. Boone Pickens and Warren Buffett

T. Boone Pickens, is chairman the hedge fund BP Capital Management. He was formerly involved in takeovers and was considered a corporate raider during the 1980s. He is ranked by Forbes as one of the 400 richest people in America. Born in Oklahoma, his first job was as a paperboy. After graduating from college, he started working for Phillips Petroleum, then became a wildcatter. He has recently been a supporter of windfarms.

Berkshire Hathaway's (BRK-A) (BRK-B) Warren Buffett is considered to be the top investor in the world and the world's third richest person. He started his career as a child selling various items door-to-door, running a paper route like Pickens, detailing cars, and selling golf balls. According to the latest list of Warren Buffett Berkshire Hathaway stocks at WallStreetNewsNetwork.com, there is one stock that Buffett and Pickens agree on.

Pickens has decided to follow in the footsteps of Buffett by recently buying one of Berkshire's holdings, ExxonMobil (XOM). The stock trades at 9.5 times forward earnings and pays a favorable yield of 2.4%. In May of this year, the company raised its dividend by 6.8%. Regular quarterly dividends have been paid for over 40 years.

Earnings for the latest quarter were up 40.5% on a revenue increase of 31.5%. Selling at slightly less than $80 per share at the time this article was written, the stock has a mean price target by analysts of $90 per share. ExxonMobil currently holds over $11 billion in cash.

For a free list of stocks that Warren Buffett owns, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Warren Buffett Invested $23.9 Billion for the Latest Quarter

Warren Buffett, chairman and CEO of Berkshire Hathaway (BRK-A) (BRK-B) and the third richest man in the world, at least this week, invested $23.9 billion during the third quarter. Apparently, Buffett is now very bullish as this is the most he has spent in a quarter in the last 15 years. According to the Berkshire's latest report, stocks identified as “commercial, industrial and other” increased by a substantial 62 percent for the latest quarter.

There is no denying that Warren Buffett is an outstanding investor, and he knows what he is doing. Much has been written about Buffett, which gives advice about how to invest by following in his footsteps. But one of the easiest and best ways to invest like Buffett is by buying what he is buying. Over a dozen of the Warren Buffett Berkshire Hathaway stocks pay dividend yields in excess of 2%, according to WallStreetNewsNetwork.com.

Buffett has a fairly diversified portfolio. He owns large oil companies, ConocoPhillips (COP) yielding 3.5% and Exxon Mobil Corp. (XOM) which pays a yield of 2.1%. He also owns food and beverage companies, including Kraft Foods Inc (KFT) paying 3.8% and Coca Cola Co (KO) which pays 2.7%. Buffett is also bullish on financial stocks, considering the number of companies he owns, such as M&T Bank Corp (MTB) yielding 3.1%, American Express Co (AXP) 1.6%, Bank of New York Mellon (BK) 1.2%, US Bancorp (USB) 0.7%, and Wells Fargo & Co (WFC) 0.6%.

The health care related stocks owned by Buffett include GlaxoSmithKline Plc (GSK) which yields 6.4%, Johnson & Johnson (JNJ) 3.6%, and Sanofi Aventis (SNY) 3.2%.

You can access a free list of two dozen of the stocks owned by Warren Buffett at WallStreetNewsNetwork.com, which shows the PE ratio, the forward PE, the EG, and the yield.

Disclosure: Author didn't own any of the above at the time the article was written.

By Stockerblog.com

Top American Oil Royalty Income Trusts

Now that oil is over $100 a barrel, income investors are taking a closer look at oil and gas income investments. Several options are available. First, there are the stocks of the multinational oil companies, such as Exxon Mobil Corp. (XOM) with a 2.1% yield and ConocoPhillips (COP), which has a 3.3% yield.
But there are other investment instruments, including oil income royalty trusts, oil master limited partnerships also known as MLPs, and one example of a publicly traded Limited Liability Company or LLC. Income from trusts and MLPs avoid double taxation; virtually all earnings are passed through to the shareholders without being taxed at the company level.

The royalty trusts have several advantages over the partnerships. Limited partnerships don't send out 1099 forms, they send out a Schedule K-1 Form, and the income is reported on your tax return differently from regular dividends, with additional forms and preparation time involved. In addition, putting an MLP into a retirement plan can create problems because of the UBTI or Unrelated Business Taxable Income issue, which could put the tax deferred status of your retirement plan in jeopardy. I am not an accountant, so discuss MLP's with your tax advisor or CPA for clarification, before investing.

The royalty trusts don't have this problem as they send out 1099's on their income distributions, similar to dividends. According to a list just developed at WallStreetNewsNetwork.com, there are several different oil royalty income trusts with yields ranging from 4% to above 11%.

For example, Hugoton Royalty Trust (HGT), which trades at 13.8 times earnings, pays a generous yield of 6.7&. This Dallas, Texas based company pays dividends monthly and was founded in 1998.

San Juan Basin Royalty Trust (SJT) yields 6.6% and sports a price to earnings ratio of 6.6%. This Fort Worth based company also pays monthly and was founded in 1980.

Mesa Royalty Trust (MTR) is an Austin, Texas trust that has been around since 1979. It trades at 13.8 times earnings and yields 5.7%. As with most other oil trusts, distributions are made monthly.

When you check out the free list of oil income investments at WallStreetNewsNetwork.com, pay close attention to the last column, which shows the company structure, either limited partnership, trust, or LLC. Also, although a few of these have extremely high yields above 8%, use caution before investing as the yields may not be sustainable.

Disclosure: Author does not own any of the above.

By Stockerblog.com

What Warren Buffett Thinks of Gold

With the news about gold and silver making new recent highs, it is interesting to hear what Berkshire Hathaway's (BRK-A) (BRK-B) Warren Buffett says about gold, farmland, and ExxonMobil (XOM).

Plenty of Oil Income Royalty Trusts Yielding Over 5.5%

Over the last month, the price of crude oil has increased from $77 a barrel to $82 a barrel, an increase of 6.5%. Income investors that want exposure to oil and gas have many options. Several of the multinational oil companies have decent yields, such as Exxon Mobil Corp. (XOM) with a 2.7% yield and ConocoPhillips (COP), which has a 3.6% yield.

However, for the really high yields, investors have to turn to the oil income royalty trusts and the oil master limited partnerships or MLPs. In both cases, income generated avoids double taxation; virtually all earnings are passed through to the shareholders without being taxed at the company level.

Of these options, the royalty trusts have many advantages over the partnerships. Limited partnerships don't send out 1099 forms, they send out a Schedule K-1 Form, and the income is reported on your tax return differently from regular dividends, with additional forms and preparation time involved. In addition, you should never put an MLP into a retirement plan because of the UBTI or Unrelated Business Taxable Income problem, which could put the tax deferred status of your retirement plan in jeopardy, based on my understanding. However, since I am not an accountant, I am not giving tax advice so please discuss MLP's with your accountant or CPA for clarification, before investing in MLPs.

The royalty trusts don't have this problem as they send out 1099's on their income distributions, similar to dividends. According to a list just developed at WallStreetNewsNetwork.com, there are nine different oil royalty income trusts with yields ranging from 5.7% to 13%. For example, Cross Timbers Royalty Trust (CRT), with a price to earnings ratio of 15, sports a yield of 8.1%. This trust owns 90% net profits interests in many royalty and overriding royalty interest properties in Texas, Oklahoma, and New Mexico. Distributions have been paid monthly since 1992.

Sabine Royalty Trust (SBR), founded in 1982, receives royalties from oil and gas properties in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. The stock has a PE ratio of 17 and a yield of 7.3%. This trust also pays monthly.

When you check out the free list of oil income investments at WallStreetNewsNetwork.com, pay close attention to the last column, which shows the company structure, either limited partnership, trust, or LLC.

Disclosure: Author does not own any of the above.

By Stockerblog.com