The question on everyone’s mind is: How did he do it? How did David Tepper make so much money last year? The answer, in part: Tepper bet heavily on technology giant Apple Inc. (AAPL) increasing his stake as follows:
Apple Inc. (AAPL)
As of the quarter ending Dec. 31, 2012, David Tepper owns 912,661 shares of AAPL, valued as $486 million, and accounts for 10.5% of his equity portfolio. Tepper added his positions in the Sept. 30, 2012 quarter by 0.94%, again in the Dec. 31, 2012 quarter by 75.11%.
Currently Appaloosa Management’s top public equity holding, Apple Inc. has a market cap of $428.8 billion; its shares traded around $456.4 with a P/E ratio of 10.41 and P/S ratio of 2.6. The dividend yield of Apple Inc. stocks is 1.8%. Apple Inc. had an annual average earnings growth of 81.6% over the past 10 years.
GuruFocus rated Apple Inc. the business predictability rank of 4.5-star.
His holding history:
Commenting on how he founded Appaloosa Management, according to a Bloomberg interview, Guru Tepper said: "After you work on Wall Street, it's a choice, would you rather work at McDonald's or on the sell side? I would choose McDonald's. Over the sell side." As a young boy, Tepper became interested in the stock market watching his father trade stocks in his hometown of Pittsburgh.
With a track record of robust philanthropy, Tepper donated a record $55 million to his alma mater Carnegie Mellon University in 2004, the largest donation in its 104-year history.
Tepper’s portfolio lists 57 stocks with a total value of $4.6 billion, and a quarter-over-quarter turnover of 22%.
Tepper’s other top buys, sells and holdings:
Read more about David Tepper’s Top 5 Buys.