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Spain's Guru Francisco Garcia Paramés' Top Five Positions
Posted by: Monica Wolfe (IP Logged)
Date: November 4, 2013 05:28PM

One of our newest international gurus, Francisco Garcia Paramés, reported his third quarter portfolio changes yesterday.

Paramés is a self-taught value investor from Madrid, Spain, who strictly adheres to the value management of Graham, Buffett and Lynch. The guru is the chief investment officer of Bestinver Asset Management and has often been referred to as the “Spanish Warren Buffett.”

During the second quarter the Spanish guru sold out of five companies and bought into nine new ones. As of the close of the second quarter, Paramés’ portfolio contained 101 international stocks valued at over $1.2 billion.

Bayerische Motoren Werke AG (XTER:BMW3)

Francisco Paramés’ largest position is in the German auto maker Bayerische Motoren Werke (BMW) where the guru holds on to 1,805,821 shares of the company’s stock. His position in BMW represents 7.8% of his total portfolio.

BMW was Paramés’ second largest position last quarter, but over the third quarter he bumped up his stake by 3.12%. The guru purchased a total of 54,669 shares in the price range of €53.02 to €60.83, with an estimated average quarterly price of €57.12. Since then the price per share has increased an additional 7.8%.

Paramés has held a position in BMW since 2012Q2 and has seen average gains of around 44%. The guru’s historical holding history as of the close of the third quarter:



Bayerische Motoren Werke, or BMW, manufactures automobiles and motorcycles worldwide. The company's activities are divided into three segments: Automobiles, Motorcycles and Financial Services.

BMW3’s historical revenue and net income:



The analysis on BMW reports that the company’s operating margin expanding, its revenue has been in decline over the past year and its price is nearing a 10-year high.

Francisco Garcia Paramés is the only guru shareholder of XTER:BMW3.

The Peter Lynch Chart suggests that the company is currently undervalued:



Bayerische Motoren Werke has a market cap of €49.77 billion. Its shares are currently trading at around €61.55 with a P/E ratio of 10.30, a P/S ratio of 0.89 and a P/B ratio of 1.54.

EXOR S.p.A. (MIL:EXO)

Paramés’ second largest position is in EXOR where the guru holds on to 3,503,859 shares. His holdings make up for 6.9% of his total portfolio and 2.19% of the company’s shares outstanding.

Last quarter EXOR was Paramés’ largest holding, but over the duration of the quarter the guru reduced his position -15.16% by selling a total of 626,291 shares. He sold these shares in the price range of €22.50 to €28.74, with an estimated average quarterly price of $25.74. Since then the price per share has increased about 11.9%.

Paramés bought into the company in 2013Q2, and since then has seen average gains of 23% on his shares bought. Paramés’ historical holding history as of the third quarter:

[

EXOR S.p.A. is one of Europe’s leading investment companies and is controlled by the Agnelli Family. It has a net asset value of over 8.5 billion euros. EXOR makes long-term investments focused on global companies in diversified sectors, mainly in Europe in the U.S.

EXOR’s historical revenue and net income:



The Peter Lynch Chart suggests that the company is currently undervalued:



EXOR S.p.A. has a market cap of €7.19 billion. Its shares are currently trading at around €28.80 with a P/E ratio of 3.80, a P/S ratio of 0.04 and a P/B ratio of 0.27. The company had an annual average earnings growth of 269.30% over the past five years.

Wolters Kluwer NV (XAMS:WKL)

The guru’s third largest position is in Wolters Kluwer where he owns 4,861,349 shares of the company’s stock. His position in the company represents 6.6% of his total portfolio and 1.64% of the company’s shares outstanding.

Paramés reduced his position in Wolters Kluwer -1.3% over the third quarter by selling 63,782 shares of the company’s stock. He sold this stock in the price range of €16.39 to €19.27, with an estimated quarterly price of €18.24. Since then the price per share has increased approximately 9.6%.

The guru has held a position in the company since 2012Q2, and has seen average gains of 58%. Paramés’ historical holding history:



Wolters Kluwer is a leading global information services and publishing company. The company provides products and services globally for professionals in the health, tax, accounting, corporate, financial services, legal, and regulatory sectors.

Wolters Kluwer’s historical revenue and net income:



Francisco Garcia Paramés is the only guru shareholder of XAMS:WKL.

The analysis on Wolters Kluwer reports that the company’s operating margin is expanding, its dividend yield is at a 5-year low and its price is near a 5-year high.

The Peter Lynch Chart suggests that the company currently appears to be overvalued:



Wolters Kluwer has a market cap of €5.91 billion. Its shares are currently trading at around €20.00 with a P/E ratio of 18.90, a P/S ratio of 1.66 and a P/B ratio of 3.85. The company had an annual average earnings growth of 4.3% over the past ten years.

Thales (XPAR:HO)

Francisco Paramés’ fourth largest holding is in Thales where he holds on to 2,034,896 shares of the company’s stock. His position in Thales represents 5.9% of his total portfolio and 1.01% of the company’s shares outstanding.

During the third quarter Paramés cut his position -7.1% by selling 155,432 shares of Thales stock. He sold these shares in the third quarter price range of €35.33 to €41.31, with an estimated average quarterly price of €38.89 per share. Since then the price per share is up about 15.7%.

Paramés’ holding history as of the close of the third quarter:



Thales is a French multinational company that designs and builds electrical systems and provides services for the aerospace, defense, transportation and security markets.

Thales’ historical revenue and net income:



The analysis on Thales reports that the company’s price is near a 10-year high and its P/S ratio is near a 5-year high.

The top guru shareholders of Thales:

1. Francisco Garcia Paramés: 2,034,896 shares, representing 1.10% of the company’s shares outstanding and 5.9% of his total portfolio.
2. Charles de Vaulx: 672,369 shares, representing 0.33% of the company’s shares outstanding and 0.68% of his total portfolio.
3. IVA International Fund: 482,674 shares, representing 0.24% of the company’s shares outstanding and 1.3% of their total assets managed.

The Peter Lynch Chart suggests that the company is currently overvalued:



Thales has a market cap of €9.1 billion. Its shares are currently trading at around €45.00 with a P/E ratio of 16.30, a P/S ratio of 0.64 and a P/B ratio of 1.93. The company had an annual average earnings growth of 22.5% over the past five years.

Wm Morrison Supermarkets PLC (LSE:MRW)

The guru’s fifth largest holding is in Wm Morrison Supermarkets where he holds on to 13,997,054 shares of the company’s stock. His holdings make up for 3.2% of his total portfolio and 0.60% of the company’s shares outstanding.

Over the duration of the third quarter Paramés bought 743,008 shares of the company’s stock, representing a 5.61% increase in his holdings. The guru purchased these shares in the third quarter price range of £2.61 to £3.02, with an estimated average quarterly price of £2.87 per share. Since then the price per share has dropped a slight -0.7%.

Since the guru bought into the company during the fourth quarter of 2012, he has seen average gains of 7%. Paramés’ historical holding history:



Wm Morrison Supermarkets is the fourth largest chain of supermarkets in the UK The company is usually referred to and is branded as Morrisons.

Wm Morrison’s historical revenue and net income:



Francisco Garcia Paramés is the only guru shareholder of Wm Morrison.

The analysis on Wm Morrison reports that the company’s operating margin is currently expanding, the dividend yield is at a 10-year high and over the past three years they have issued £1.2 billion of debt.

The Peter Lynch Chart suggests that the company currently appears to be undervalued:



Wm Morrison has a market cap of £6.57 billion. Its shares are currently trading at around £2.85 with a P/E ratio of 10.60, a P/S ratio of 0.37 and a P/B ratio of 1.26. The company had an annual average earnings growth of 9.6% over the past five years.

Check out the entirety of Francisco Garcia Paramés’ second quarter portfolio.

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Guru Discussed: Francisco Garcia Paramés: Current Portfolio, Stock Picks
Stocks Discussed: XTER:BMW3, MIL:EXO, XAMS:WKL, XPAR:HO, LSE:MRW,
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Rating: 2.8/5 (5 votes)



Re Span s Guru Francisco Garcia Param s Top Five Positions
Posted by: vgm (IP Logged)
Date: November 5, 2013 06:12AM

Thanks Monica. A useful summary.

I'd just point out (as Paramés himself stresses) that his BMW shares (BMW3) are preferreds. The common trades higher than the preferreds.

He is also building a position in Tesco, a competitor of Morrison's.

PS Your title has a typo (Spain not Span)



Guru Discussed: Francisco Garcia Paramés: Current Portfolio, Stock Picks
Stocks Discussed: XTER:BMW3, MIL:EXO, XAMS:WKL, XPAR:HO, LSE:MRW,
Rate this post:

Rating: 0.0/5 (0 votes)



Re Span s Guru Francisco Garcia Param s Top Five Positions
Posted by: rjstcr (IP Logged)
Date: November 5, 2013 08:31AM

Monica, I don't know where your information comes from but just by looking at Bestinvers web site you would find that they have owned BMW much longer than you show as an example.



Guru Discussed: Francisco Garcia Paramés: Current Portfolio, Stock Picks
Stocks Discussed: XTER:BMW3, MIL:EXO, XAMS:WKL, XPAR:HO, LSE:MRW,
Rate this post:

Rating: 0.0/5 (0 votes)





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