In a nutshell, Charlie Munger’s sage words describe Arnold Van Den Berg’s investment approach:
“All intelligent investing is value investing - acquiring more than you are paying for. You must value the business in order to value the stock.”
A veteran value investor, Arnold Van Den Berg, CEO and co-chief investment officer of Century Management, based in Austin, has a reputation as a rainmaker. Since founding Century Management in 1974, Van Den Berg has beaten all of the indices. He considers himself a student of Benjamin Graham.
The recent Century Management portfolio update shows a total of 60 stocks, three of them new, with a total value of $975 million and a quarter-over-quarter turnover of 7%.
Here are Van Den Berg’s current top four holdings:
No. 1: Cisco Systems (CSCO, Financial)
Van Den Berg’s top holding is Cisco Systems Inc. (CSCO) for 2,114,353 shares with a portfolio weight of 5.3%. In the second quarter of 2013, selling 193,090 shares at an average cost per share of $22.50, he gained 14.3%.
His holding history:
Up 54% over 12 months, Cisco Systems Inc. has a market cap of $138.58 billion; its shares trade at around $25.71 with a P/E ratio of 14.70 and P/B ratio of 2.30. The dividend yield of Cisco Systems stock is 2.40%. Cisco Systems has had an annual average earnings growth of 9.4% over the past 10 years. GuruFocus rated Cisco Systems Inc. the business predictability rank of 3-star.
No. 2: Jacobs Engineering Group (JEC, Financial)
Van Den Berg also holds 918,587 shares of Jacobs Engineering Group (JEC), an engineering and construction company, weighting his portfolio for 5.2%. Selling off 77,610 shares at an average price of $53.68 in the second quarter of 2013, Van Den Berg gained 8.1%.
His holding history:
Historical pricing:
Up 51% over 12 months, Jacobs Engineering Group has a market cap of $7.63 billion; its shares trade at around $57.97 with a P/E ratio of 18.30 and P/B ratio of 1.80. Jacobs Engineering Group has had an annual average earnings growth of 12.5% over the past 10 years.
No. 3: Newmont Mining Corporation (NEM, Financial)
A fairly new holding since the first quarter of 2012, Newmont Mining Corporation is Van Den Berg’s third top holding with 1,668,084 shares with a portfolio weighting of 5.1%. In the second quarter of 2013, he bought 675,225 shares at an average price of $33.57 and lost 16%.
His holding history:
Down 37% over 12 months, Newmont Mining Corporation has a market cap of $13.37 billion; its shares trade at around $28.03 with a P/E ratio of 8.30 and P/S ratio of 1.50. The dividend yield of Newmont Mining Corporation stocks is 5.20%. Newmont Mining has had an annual average earnings growth of 12.5% over the past 10 years.
Historical pricing:
No. 4: Berkshire Hathaway Inc. (BRK.B, Financial)
Van Den Berg’s fourth top holding is Berkshire Hathaway (BRK.B) with 389,535 shares and a portfolio weighting of 4.5%. In the second quarter of 2013, he sold 33,980 shares at an average price of $110.02 and made 7.1%.
His holding history:
At an average cost per share of $78.54, Van Den Berg has gained 50% on 469,365 shares bought since the fourth quarter of 2008.
Historical pricing:
Up 39% over 12 months, Berkshire Hathaway Inc. has a market cap of $275.4 billion; its shares trade at around $117.83 with a P/E ratio of 17.00 and P/S ratio of 1.60. Berkshire Hathaway Inc. has 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.
Here is the complete portfolio of Arnold Van Den Berg.
“All intelligent investing is value investing - acquiring more than you are paying for. You must value the business in order to value the stock.”
A veteran value investor, Arnold Van Den Berg, CEO and co-chief investment officer of Century Management, based in Austin, has a reputation as a rainmaker. Since founding Century Management in 1974, Van Den Berg has beaten all of the indices. He considers himself a student of Benjamin Graham.
The recent Century Management portfolio update shows a total of 60 stocks, three of them new, with a total value of $975 million and a quarter-over-quarter turnover of 7%.
Here are Van Den Berg’s current top four holdings:
No. 1: Cisco Systems (CSCO, Financial)
Van Den Berg’s top holding is Cisco Systems Inc. (CSCO) for 2,114,353 shares with a portfolio weight of 5.3%. In the second quarter of 2013, selling 193,090 shares at an average cost per share of $22.50, he gained 14.3%.
His holding history:
Up 54% over 12 months, Cisco Systems Inc. has a market cap of $138.58 billion; its shares trade at around $25.71 with a P/E ratio of 14.70 and P/B ratio of 2.30. The dividend yield of Cisco Systems stock is 2.40%. Cisco Systems has had an annual average earnings growth of 9.4% over the past 10 years. GuruFocus rated Cisco Systems Inc. the business predictability rank of 3-star.
No. 2: Jacobs Engineering Group (JEC, Financial)
Van Den Berg also holds 918,587 shares of Jacobs Engineering Group (JEC), an engineering and construction company, weighting his portfolio for 5.2%. Selling off 77,610 shares at an average price of $53.68 in the second quarter of 2013, Van Den Berg gained 8.1%.
His holding history:
Historical pricing:
Up 51% over 12 months, Jacobs Engineering Group has a market cap of $7.63 billion; its shares trade at around $57.97 with a P/E ratio of 18.30 and P/B ratio of 1.80. Jacobs Engineering Group has had an annual average earnings growth of 12.5% over the past 10 years.
No. 3: Newmont Mining Corporation (NEM, Financial)
A fairly new holding since the first quarter of 2012, Newmont Mining Corporation is Van Den Berg’s third top holding with 1,668,084 shares with a portfolio weighting of 5.1%. In the second quarter of 2013, he bought 675,225 shares at an average price of $33.57 and lost 16%.
His holding history:
Down 37% over 12 months, Newmont Mining Corporation has a market cap of $13.37 billion; its shares trade at around $28.03 with a P/E ratio of 8.30 and P/S ratio of 1.50. The dividend yield of Newmont Mining Corporation stocks is 5.20%. Newmont Mining has had an annual average earnings growth of 12.5% over the past 10 years.
Historical pricing:
No. 4: Berkshire Hathaway Inc. (BRK.B, Financial)
Van Den Berg’s fourth top holding is Berkshire Hathaway (BRK.B) with 389,535 shares and a portfolio weighting of 4.5%. In the second quarter of 2013, he sold 33,980 shares at an average price of $110.02 and made 7.1%.
His holding history:
At an average cost per share of $78.54, Van Den Berg has gained 50% on 469,365 shares bought since the fourth quarter of 2008.
Historical pricing:
Up 39% over 12 months, Berkshire Hathaway Inc. has a market cap of $275.4 billion; its shares trade at around $117.83 with a P/E ratio of 17.00 and P/S ratio of 1.60. Berkshire Hathaway Inc. has 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.
Here is the complete portfolio of Arnold Van Den Berg.
