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Global Investor Tom Russo’s Top Six Holdings

Sally Jones

Sally Jones

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As a world traveler that brings a global perspective and the old-fashioned value of suffering market patience to his investing strategy, Tom Russo of Gardner Russo & Gardner is long on European companies, new markets and multi-nationals. Russo’s updated portfolio lists 255 stocks (34 of them new), a total value of $8.5 billion and a quarter-over-quarter turnover of 6%.

As of quarter ending March 31, 2013, here are Guru Tom Russo’s top six holdings:

No.1. Nestlé S.A. (NSRGY), Portfolio Weighting: 10.8%, Shares Owned: 12,691,576

In the past, Tom Russo has commented that the turmoil of Europe provides an opportunity to invest in valuable global brand companies based there, at low prices. He knows the pain and ultimately the value of developing new markets that will grow for a long time, like Nestlé in India and Russia.

Up 11% over 12 months, Switzerland-based Nestlé S.A. (NSRGY) is the world's number one food company and the world leader in coffee (Nescafe), mineral water (Perrier), and ophthalmology products. Nestlé S.A. has a market cap of $220.26 billion; its shares were traded at around $70.09 with a P/E ratio of 22.2 and a P/S ratio of 2.39. The dividend yield of Nestlé S.A. stocks is 2.6%. The company had an annual average earnings growth of 7.3% over the past 10 years. GuruFocus rated Nestlé S.A. the business predictability rank of 3.5-star.

Russo’s average cost per NSRGY share was $57 with a gain of 23% since second quarter 2008.

His holding history:



No. 2. Philip Morris International, Inc. (PM), Portfolio Weighting: 9.6%, Shares Owned: 8,823,806

While Warren Buffet stays away from cigarette companies, Tom Russo invests heavily in Philip Morris International Inc., a Virginia holding company whose subsidiaries and affiliates manufacture and sell cigarettes and other tobacco products outside the U.S. The Marlboro brand leads the company portfolio for both international and local brands.

Up 7% year to date, Philip Morris International, Inc. has a market cap of $156.12 billion; its shares were traded at around $91.95 with a P/E ratio of 17.6 and a P/S ratio of 2. The dividend yield of Philip Morris International, Inc. stocks is 3.6%. The company had an annual average earnings growth of 14.4% over the past 5 years. GuruFocus rated Philip Morris International, Inc. the business predictability rank of 4.5-star.

Russo’s average price for PM shares bought was $62.41 with a gain of 48% since second quarter 2008. Shares sold average price was $66.93 with a gain of 38% in the same period.



No. 3. Berkshire Hathaway Inc. (BRK.A), Portfolio Weighting: 8.8%, Shares Owned: 4,833

Russo once said that Berkshire Hathaway profited over the years from its capacity to suffer, a theme he has emphasized for companies willing to wait out market development.

Berkshire Hathaway Inc. has a market cap of $263.51 billion; its shares were traded at around $157,861 with a P/E ratio of 16.4 and a P/S ratio of 1.57. The company had an annual average earnings growth of 7.8% over the past 10 years. GuruFocus rated Berkshire Hathaway Inc. the business predictability rank of 3-star.

Russo’s average price per BRK.A share has been $121,786.67 with a gain of 30% since second quarter 2008. His average price of shares sold was $105,211.14 with a gain of 50% during the same time period.

BRK.A is up 33% over 12 months.

His holding history:



No. 4. Heineken Holding NV ORD (HKHHF), Portfolio Weighting: 7.2%, Shares Owned: 9,556,340

Up 29% over 12 months, the Amsterdam-based beer brewer has a portfolio of local and international brands, with the ever-popular green bottle, Heineken, as the company's central product.

The current share price of Heineken Holding (HKHHF) is $62.30.

Russo’s average cost per HKHHF share has been $45 with a gain of 38% since second quarter 2008.

His holding history:



No. 5. Compagnie Financiere Richemont S.A. (CFR), Portfolio Weighting: 6.7%, Shares Owned: 7,325,847

Up 8% over 12 months, Compagnie Financiere Richemont S.A. (CFR) is another Switzerland-based luxury goods company and maker of fine brands of jewelry, watches, and writing instruments as well as textiles and other manufacturing. The company operates subsidiaries and joint ventures located in Europe, the United States and Asia, among others.

Since fourth quarter 2012, Russo’s average cost per CFR share was $56 with a 9% gain.

No. 6. SABMiller PLC ORD (SBMRF), Portfolio Weighting: 6.1%, Shares Owned: 9,871,166

Tom Russo has also commented on the strength of SABMiller PLC (SBMRF) as another company that has grown because of its capacity to suffer “earnings birth pains,” the cost of developing in completely new markets such as India, Russia, South Africa and Sub-Saharan Africa.

Up 23% over 12 months, the London-based beverage company SABMiller PLC (SBMRF) makes, sells and distributes soft drinks, fruit juices and 200 brands of beer. The company also bottles soft drinks for The Coca-Cola Company (KO).

Founded in 1895, the company does business in South Africa, Colombia, Australia, the United Kingdom, the United States, and others. The current share price is $51.75.

Russo’s average cost per SBMRF share was $35 with a gain of 48% since second quarter 2008.

His holding history:



Tom Russo’s top buys, sells, and holdings:



Here is the complete portfolio of Tom Russo.

Also check out:

1. Tom Russo's Undervalued Stocks

2. Tom Russo's Top Growth Companies

3. Tom Russo's High Yield stocks

4. Stocks that Tom Russo keeps buying

Find stocks on a 52-week low here.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.3/5 (3 votes)

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