Warren Buffett's 5 Most Spectacular Earnings Charts

Video length 00:09:45

The fourth-quarter earnings season is here. It’s being led off, as always, by the big banks.

And that means Warren Buffett will be paying attention because Berkshire Hathaway still has big positions in the banks and other financials.

But among Berkshire’s 50 stock positions, there are several which stand out because they have fantastic earnings charts.

What that means is that they rarely miss on the estimate and the shares continue to rise.

These are known as earnings all-stars.

Earnings All-Stars are Rare

It’s not easy to beat every quarter, or nearly every quarter, for years. There are only a couple dozen companies that have never missed in the last 5 years and one of those below hasn’t missed in 12 years.

Who does that?

It takes solid communication from management to the Street and execution in the business each quarter, even during a global pandemic, to pull it off.

There are a lot of moving parts in producing a good earnings surprise record. 

Yet these five companies are doing it as their shares hit new all-time highs.

Is having a good earnings surprise track record a requirement to be in Berkshire’s portfolio?

Or is it just a coincidence?

5 of Buffett’s Most Spectacular Earnings Charts

1.    Visa (V - Free Reporthas the best earnings chart on the Street. Period. No other even comes close. It hasn’t missed since its 2008 IPO (gulp) and is up over 1100% since then. Berkshire bought it in the third quarter of 2011, so it has a big winner, but it’s a small position in the portfolio compared to his banks and Apple.

2.    Mastercard (MA - Free Reportalso has an amazing earnings surprise track record but it has some misses. It went IPO in 2006 and has missed only 3 times in that 14 years. Impressive. Berkshire bought it before it bought Visa, in the first quarter of 2011. Shares are up over 7,000% since the IPO.

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Disclosure: The author of this article owns shares of RH in her personal portfolio.

Disclaimer: Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of ...

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