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The Newly Rebalanced Buffett-Munger Portfolio

Our GuruFocus Buffett-Munger portfolio has officially been rebalanced for 2013. Off to a 0.94 percent positive start, compared to the S&P 500’s 1.17 percent rise so far, we anticipate that the Buffett-Munger will perform solidly this year continuing to use the top-performing strategies of the renowned Gurus that the portfolio was named after.

Below is a summary and breakdown of our basket of 25 stocks. Make sure to check the full list of the portfolio on GuruFocus Buffett-Munger Portfolio. If you can’t view the portfolio, make sure to sign up as a Premium Member at Memberships at GuruFocus to take advantage of our awesome limited-time deal of 15% off on GuruFocus Premium Annual Membership.

[/b][b]Market Value-Leading Stocks

These three stocks kicked off the year for the Buffett-Munger portfolio with the highest market value change percentages from 2012. We look forward to seeing their great performance from last year roll on over to this year.

1357159483041.pngORCL data by GuruFocus.com

Having returned more than 41 percent in 2012, First Cash Financial Services Inc. (FCFS) is trading about $50, with its stock up 0.79 percent.Last year, the stock was on an upward trend in the first quarter. If it hadn’t dropped in mid-March, it would have reached its current value. Instead, after reaching $47 around that time, the stock descended. Guru Jim Simons owns 1.09 percent of its outstanding shares, while Jeremy Grantham owns 1.02 percent of its outstanding shares.

Oracle Corp. (ORCL) delivered 31.5 percent in gains in 2012, while Mettler-Toledo International Inc. (MTD) gave about 30.9 percent. Both are trading positively today. On GuruFocus, top holder Jeremy Grantham owns almost 51,000 shares of Oracle, which is 1.05 percent of shares outstanding. Columbia Wanger owns 2.3 million shares of Mettler-Toledo, which is 7.26 percent of shares outstanding.



Today’s Gainers


Out of the 25, the following stocks are up the highest for today’s afternoon trading:

1357159159361.pngTSCO data by GuruFocus.com

Malt beverage and hard cider brewery, Boston Beer Company Inc. (SAM), is up 3.89 percent this afternoon, at the price of $139.68 per share. Guru Ken Fisher purchased the stock in the third quarter of 2012, claiming 360,286 shares, representing 2.79 percent of shares outstanding. Other Gurus such as Mario Gabelli and Ron Baron also hold the stock.

Tractor Supply Company (TSCO) is up 3.62 percent this afternoon, trading at $91.62 per share. On GuruFocus, Steve Mandel is the stock’s top holder, with 4.14 percent of the company’s shares outstanding.

Enterprise software provider, Oracle Corp. (ORCL) is up 3.45 percent this afternoon, trading at $34.49 per share. On GuruFocus, Jeremy Grantham is the stock’s top holder, his share total representing 1.05 percent of shares outstanding.



Today’s Losers


Although these two stocks are trading in the negative range this afternoon, they are ranked high in predictability, appear as undervalued and have competitive advantage, according to the GuruFocus Buffett-Munger Screener.

1357157346835.pngHUM data by GuruFocus.com

Consumer loan provider, World Acceptance Corp. (WRLD), is down 0.9 percent today, but its price has gone up significantly since its purchase in 2009. Columbia Wanger owns a large chunk of the stock, with 14.11 percent of shares outstanding, but only representing 0.57 percent of his portfolio. In second place on GuruFocus is John Hussman, who owns 1.47 percent of shares outstanding.

Health benefits provider, Humana (HUM) is down 0.39 percent today. In the third quarter of 2012, several Gurus reduced their stakes in Humana including David Einhorn, Jean-Marie Eveillard, Jeremy Grantham and Ray Dalio. John Hussman and Daniel Loeb sold out of the stock. Edward Owens owns highest percentage of the company’s outstanding shares, at 4.11 percent.



Most Shareholding


Knowing that GuruFocus started off investing $100,000 when the portfolio was formed in 2008, the Buffett-Munger is now currently worth $182,687. Below are the three stocks whose shares GuruFocus owns the most of.

1357157939344.pngRBCAA data by GuruFocus.com

GuruFocus owns 327 shares of Republic Bancorp Inc. (RBCAA), purchased at $21.13 per share. The stock is up 6.44 percent today, at $22.48. On GuruFocus, only Jim Simons has a stake in the company right now.

GuruFocus owns 207 shares of Oracle Corp. (ORCL), purchased at $33.32 per share. Trading positively today, its price is $34.49.

GuruFocus owns 202 shares of World Acceptance Corp. (WRLD), purchased in 2009 at $19.76. Since then, the company has surged in value, currently trading at $74.78.

Least Shareholding

The smallest holdings in the Buffett-Munger portfolio are Atrion Corp. (ATRI), Mettler-Toledo International Inc. (MTD) and Ralph Lauren Corp. (RL).

1357158883873.pngMTD data by GuruFocus.com

Both Mettler-Toledo and Ralph Lauren are brand new to the portfolio; Atrion, on the other hand, was purchased during last year’s rebalance.

With 25 shares of Atrion, its price has gone down since the time of purchase. From $240.23, it is now $204.13.

GuruFocus owns 36 shares of Mettler-Toledo, whose stock is up 1.95 percent today, and 46 shares of Ralph Lauren,which is up 1.04 percent.



Highest Yielding


Here are the top three stocks in the portfolio with the highest yields.

1357160188885.pngMTSC data by GuruFocus.com

Aerospace and defense company, General Dynamics Corp. (GD) has a 3 percent dividend yield. It has a three-year dividend growth of 8.1 percent. Up 1.91 percent today, it is trading at $70.60, with a P/E ratio of 10, a P/B ratio of 1.7 and a P/S ratio of 0.7.

Test systems and industrial position sensors supplier, MTS System Corp. (MTS) has a dividend yield of 2.5 percent. It has a three year dividend growth rate of 15 percent. Up 2.94 percent today, MTS’ price sits at $52.45, with a P/E ratio of 15.2, a P/B ratio of 3.6 and a P/S ratio of 1.4.

Large retailer, Walmart Stores Inc. (WMT) has a dividend yield of 2.2 percent. It has a three-year dividend growth rate of 11.3 percent. Trading at $68.86, its P/E ratio is 13.6, its P/B ratio is 2.9 and its P/S ratio is 0.5.

The full list of 25 stocks can be found on GuruFocus Buffett-Munger Portfolio.

About the GuruFocus All-in-One Screener


The GuruFocus All-in-One Screener was used for some of the data in the article. It is a Premium Feature that allows members to use 120 filters to screen for stocks of all kinds. Whether simple or elaborate, the screener filters stocks according to fundamentals, profitability, growth, valuation, price, dividends, Gurus and Insiders.

GuruFocus’ long list of Premium Membership perks provides many opportunities to follow your favorite Gurus and stocks more closely. If you are not a Premium Member yet, we invite you for a 7-Day Free Trial.

About the author:

Dianne Tordillo
Dianne Tordillo is staff writer for GuruFocus.com. She reports on a variety of financial news, primarily dealing with investor portfolios and stock trades. Her articles also highlight insider trades, as well as the many useful features of GuruFocus.

Visit Dianne Tordillo's Website


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