Warren Buffett and Billionaires Are Crazy About These 7 Stocks

7. Mondelez (MDLZ): Buffett has a very small position in the stock. He is probably waiting for a much better price to boost his holdings. Activist Nelson Peltz is the largest holder with a $1.5 billion position. Mason Hawkins also has nearly $1.2 billion invested in this stock. Mario Gabelli, Jim Simons, and James Dinan are among Mondelez shareholders too. Mondelez is another stock that’s growing its earnings by around 10-15% annually and trade at 20 times 2015 earnings. S&P said the following about the stock in a research note:

“The company agreed to form a coffee joint venture in May 2014 with D.E. Master Blenders 1753 B.V., taking a 49% interest in the new company in return for $5 billion (after-taxes) in cash. The transaction is pending customary closing conditions, including regulatory approval, and is expected to close in 2015. Also, MDLZ received an after-tax award in December 2013 of roughly $2.8 billion pretax relating to a dispute involving Starbucks packaged coffee.We expect a majority of funds received from these transactions to fund share repurchases.

Over time, we think rising incomes and changing lifestyles in developing markets, plus improving distribution channels, will help fuel growth for Mondelez. The company expects to grow revenues at or above the growth levels of the categories in which it operates over the long term. However, reported sales growth may be restrained by strength of the U.S. dollar relative to other currencies. Additionally, the company is targeting $3 billion in gross productivity savings between 2014 and 2017, which we expect to help drive margin expansion.”

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