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Prem Watsa Buys LVLT, RIMM, C, MMI, PPP, Sells KFT

gurufocus

gurufocus

341 followers
Prem Watsa is one of the greatest investors of our time. He is known as the Warren Buffett of the North. Over the past 25 years, he has grown the book of his company Fairfax Financial by 25% a year. He pays the closest attention to risks in investing, and made fortune by hedging against risks. Currently he is about 90% hedged. To understand more about his view with the economy and the stock market, read recent interview with him:

GuruFocus Interview with Fairfax CEO Prem Watsa.

Prem Watsa buys Level 3 Communications Inc., Research In Motion Ltd., Motorola Mobility Holdings, Primero Mining Corp, Continucare, Citigroup Inc., New York Times Co. Cl A, sells Kraft Foods Inc. Cl A, Sandridge Energy, Newmarket during the 3-months ended 09/30/2011, according to the most recent filings of his investment company, Fairfax Financial Holdings. As of 09/30/2011, Fairfax Financial Holdings owns 44 stocks with a total value of $2.1 billion. These are the details of the buys and sells.

This is the portfolio chart of Prem Watsa. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position.



For the details of Prem Watsa's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Prem+Watsa

This is the sector weightings of his portfolio:

Technology 27.4%
Financials 24.4%
Telecom 20.1%
Health Care 16.4%
Industrials 2.4%
Consumer Services 2.3%
Oil & Gas 1.6%
Consumer Goods 0.5%


These are the top 5 holdings of Prem Watsa

  1. Johnson & Johnson (JNJ) - 5,184,300 shares, 16.1% of the total portfolio.
  2. Dell Inc. (DELL) - 22,693,489 shares, 15.6% of the total portfolio.
  3. Level 3 Communications Inc. (LVLT) - 12,937,559 shares, 14.1% of the total portfolio. Shares added by 40.17%
  4. AbitibiBowater (ABH) - 17,503,704 shares, 12.8% of the total portfolio.
  5. Research In Motion Ltd. (RIMM) - 11,798,300 shares, 11.7% of the total portfolio. Shares added by 40.9%


New Purchase: Motorola Mobility Holdings (MMI)

Prem Watsa initiated holdings in Motorola Mobility Holdings. His purchase prices were between $21.03 and $38.13, with an estimated average price of $30.75. The impact to his portfolio due to this purchase was 0.07%. His holdings were 37,500 shares as of 09/30/2011. Motorola Mobility Holdings operates as a provider of technologies products and services for handset and television set-top box units. Motorola Mobility Holdings has a market cap of $11.67 billion; its shares were traded at around $39.01 with and P/S ratio of 1.

New Purchase: Primero Mining Corp (PPP)

Prem Watsa initiated holdings in Primero Mining Corp. His purchase prices were between $2.39 and $4.58, with an estimated average price of $3.46. The impact to his portfolio due to this purchase was 0.03%. His holdings were 230,000 shares as of 09/30/2011. Primero Mining Corporation is engaged in exploration, acquisition and development of mineral resource properties. Primero Mining Corp has a market cap of $302.5 million; its shares were traded at around $3.43 .

Sold Out: Kraft Foods Inc. Cl A (KFT)

Prem Watsa sold out his holdings in Kraft Foods Inc. Cl A. His sale prices were between $32.8 and $35.93, with an estimated average price of $34.62. Kraft Foods, Inc. is the largest branded food and beverage company headquartered in the U. Kraft Foods Inc. Cl A has a market cap of $62.57 billion; its shares were traded at around $35.43 with a P/E ratio of 16.3 and P/S ratio of 1.3. The dividend yield of Kraft Foods Inc. Cl A stocks is 3.3%. Kraft Foods Inc. Cl A had an annual average earnings growth of 2.3% over the past 5 years.

Added: Level 3 Communications Inc. (LVLT)

Prem Watsa added to his holdings in Level 3 Communications Inc. by 40.17%. His purchase prices were between $21.5892 and $39.2804, with an estimated average price of $29.09. The impact to his portfolio due to this purchase was 4.03%. His holdings were 193,966,419 shares as of 09/30/2011. Level 3 Communications is an international communications and information services company. Level 3 Communications Inc. has a market cap of $2.5 billion; its shares were traded at around $21.07 with and P/S ratio of 0.7.

Added: Research In Motion Ltd. (RIMM)

Prem Watsa added to his holdings in Research In Motion Ltd. by 40.9%. His purchase prices were between $21.16 and $32.55, with an estimated average price of $26.78. The impact to his portfolio due to this purchase was 3.39%. His holdings were 11,798,300 shares as of 09/30/2011. RESEARCH IN MOTION is a world leader in the mobile communications market and has a history of developing breakthrough wireless solutions. Research In Motion Ltd. has a market cap of $9.59 billion; its shares were traded at around $18.29 with a P/E ratio of 3.2 and P/S ratio of 0.5. Research In Motion Ltd. had an annual average earnings growth of 53.4% over the past 5 years.

Added: Citigroup Inc. (C)

Prem Watsa added to his holdings in Citigroup Inc. by 50%. His purchase prices were between $23.96 and $42.63, with an estimated average price of $32.61. The impact to his portfolio due to this purchase was 0.01%. His holdings were 15,000 shares as of 09/30/2011. Citigroup Inc., the global financial services company, has some two hundred million customer accounts and does business in more than hundred countries, providing consumers, corporations, governments, and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citigroup Inc. has a market cap of $82.81 billion; its shares were traded at around $28.38 with a P/E ratio of 7.6 and P/S ratio of 1. The dividend yield of Citigroup Inc. stocks is 0.1%.

Reduced: Sandridge Energy (SD)

Prem Watsa reduced to his holdings in Sandridge Energy by 79.6%. His sale prices were between $5.96 and $12.11, with an estimated average price of $8.63. The impact to his portfolio due to this sale was -5.98%. Prem Watsa still held 4,347,000 shares as of 09/30/2011. SandRidge Energy, Inc. is an oil and natural gas company headquartered in Oklahoma City with its principal focus on exploration and production. Sandridge Energy has a market cap of $2.99 billion; its shares were traded at around $7.24 with and P/S ratio of 3.2.

Reduced: Newmarket (NEU)

Prem Watsa reduced to his holdings in Newmarket by 37.5%. His sale prices were between $135.01 and $178.16, with an estimated average price of $162.25. The impact to his portfolio due to this sale was -0.01%. Prem Watsa still held 2,500 shares as of 09/30/2011. NewMarket Corporation through its subsidiaries, Afton Chemical Corporation and Ethyl Corporation, develops, manufactures, blends, and delivers chemical additives that enhance the performance of petroleum products. Newmarket has a market cap of $2.65 billion; its shares were traded at around $191.66 with a P/E ratio of 13 and P/S ratio of 1.5. The dividend yield of Newmarket stocks is 1.3%. Newmarket had an annual average earnings growth of 52.9% over the past 5 years.

About the author:

gurufocus
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.5/5 (13 votes)

Comments

kfh227
Kfh227 premium member - 2 years ago


Surprised to see him dumping SD for less than $10. I'd have to assume he is selling for over $10.

I want to buy back in for less than $6. Nat Gas is tough though. There is alot of it with many players going after it. The profit margins could be low. What might more sense is those that stand to win because of distribution and sales at the pump. Perhaps there is some company out htere that stands to make out from the conversion of long haul trucking to nat gas?

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