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Texas Rainmaker Update - Top Stocks of Arnold Van Den Berg

Sally Jones

Sally Jones

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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)


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)

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)

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)


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.


1. Arnold Van Den Berg's Undervalued Stocks

2. Arnold Van Den Berg's Top Growth Companies

3. Arnold Van Den Berg's High Yield stocks

4. Stocks that Arnold Van Den Berg keeps buying

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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: 3.7/5 (7 votes)

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