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Mutual Fund Gurus’ Favorite Stocks in the Third Quarter
Posted by: Holly LaFon (IP Logged)
Date: November 27, 2012 03:26PM
The choices of the mutual fund gurus were somewhat different from those of guru investors overall in the third quarter, according to GuruFocus’ premium feature, the S&P 500 Grid. The feature allows users to see the top buys, sells and holdings of gurus by a variety of different categories and industries.
The most mutual fund gurus in the third quarter bought these five stocks: Bank of New York Mellon (BK), Microsoft (MSFT), AIG (AIG), Cisco (CSCO) and Google (GOOG).
Bank of New York Mellon (BK)
According to the S&P 500 Grid, 12 mutual fund gurus in total bought Bank of New York Mellon stock in the third quarter. The largest buyers were Third Avenue Management, Tweedy Browne and Mason Hawkins.
Bank of New York is a bank holding company and one of the world's larger financial institutions. Bank of New York Mellon Corp has a market cap of $28.86 billion; its shares were traded at around $24.07 with a P/E ratio of 11.1 and P/S ratio of 2. The dividend yield of Bank of New York Mellon Corp stocks is 2.1%.
GuruFocus gives two severe warnings for BK, for its revenue per-share growth declining for the past five years and asset growth increasing faster than revenue growth, meaning it may be getting less efficient.
It has three medium warning signs, for a price close to a one-year high, P/S ratio close to a one-year high and for issuing $14.7 billion in new debt over the past three years, though its debt level overall is acceptable.
It has one good sign for a P/E ratio close to a 10-year low.
Twelve mutual fund gurus also bought Microsoft in the third quarter. The largest buyers were Whitney Tilson, Richard Pzena and PRIMECAP Management.
Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. Microsoft Corporation has a market cap of $232.3 billion; its shares were traded at around $27.13 with a P/E ratio of 10.5 and P/S ratio of 3.2. The dividend yield of Microsoft Corporation stocks is 3.3%. Microsoft Corporation had an annual average earnings growth of 13.6% over the past 10 years. GuruFocus rated Microsoft Corporation the business predictability rank of 5-star.
Microsoft has two severe warning signs, according to GuruFocus: Its operating margin has been in five-year decline at a rate of 2.2% annually, and its assets have grown faster than revenue, meaning it may be getting less efficient. Its one medium warning sign is for per-share revenue growth slowing down over the past 12 months.
It has five good signs, for: financial strength, dividend yield close to a five-year high, P/E ratio close to a 10-year low, P/B ratio close to a three-year low and P/S ratio close to a three-year low.
Eleven mutual fund gurus bought AIG in the third quarter. The largest buyers were Richard Perry, Daniel Loeb and George Soros.
American International Group Inc., world leaders in insurance and financial services, is the international insurance organization with operations in more than 130 countries and jurisdictions. American International Group Inc. has a market cap of $53.52 billion; its shares were traded at around $32.53 with a P/E ratio of 7.3 and P/S ratio of 0.9.
GuruFocus gives two severe warnings for AIG, for per-share revenue decline for the last five years, and cash flow from operations diverging severely from reported net income. It has one good sign: a P/E ratio close to a 10-year low.
Eleven mutual fund gurus also bought Cisco in the third quarter. The largest buyers were Jim Simons, Ken Fisher and Donald Yacktman.
Cisco Systems Inc. is the worldwide leader in networking for the Internet. Cisco Systems Inc. has a market cap of $99.92 billion; its shares were traded at around $18.97 with a P/E ratio of 11 and P/S ratio of 2.2. The dividend yield of Cisco Systems Inc. stocks is 3%. Cisco Systems Inc had an annual average earnings growth of 11.3% over the past 10 years. GuruFocus rated Cisco Systems Inc. the business predictability rank of 2.5-star.
GuruFocus gives two severe warnings for Cisco, for its gross margin being in long-term decline at a rate of 1.1% annually, and operating margin being in five-year decline at a rate of 3.9% annually. It has one medium warning, for issuing $6 billion in debt over the past three years.
Eleven mutual fund gurus also bought Google in the third quarter. The largest buyers were Ken Heebner, George Soros and Robert Karr.
Google Inc. is a technology company that provides a web based search engine through its website. Google Inc. has a market cap of $219.49 billion; its shares were traded at around $672.56 with a P/E ratio of 20.2 and P/S ratio of 5.8. Google Inc. had an annual average earnings growth of 51.9% over the past 10 years. GuruFocus rated Google Inc. the business predictability rank of 2.5-star.
Google shows one severe warning sign according to GuruFocus for issuing $6.2 billion in debt over the last three years. It has one medium warning sign for a P/S ratio close to a one-year high.
Google has five good signs, for strong financial strength, a strong Altman Z-Score, consistent per-share revenue growth, operating margin expansion and a P/E ratio close to a 10-year low.
To see more stocks that different groups of gurus purchased during a period of time, try the S&P 500 Grid. You can see stocks by industry, market cap, stock listing, weightings in gurus’ portfolios or the number who own it. You can also divide stocks by gurus that own, bought or sold them.
Guru Discussed: George Soros: Current Portfolio, Stock Picks
Ken Heebner: Current Portfolio, Stock Picks
Stocks Discussed: BK, MSFT, AIG, CSCO, GOOG,
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