Meryl Witmer, who is general partner of Witmer Asset Management LLC and Eagle Capital Management LLC, bought seven new stocks in the second quarter, according to her portfolio reported Thursday. The money manager that Warren Buffett appointed to the Berkshire Hathaway board of directors of Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial) in March is a classic value investor who shares about her stock-picking strategy in a Barron’s interview here
Witmer held 54 stocks in her portfolio at the end of the second quarter, and her six new additions except DISH Network (DISH, Financial) are all minor at well under 1% of her portfolio, respectively. The largest five are: IBM (IBM, Financial), Titan Machinery Inc. (TITN, Financial), Interactive Brokers Group Inc. (IBKR, Financial) and Wells Fargo & Co. (WFC, Financial).
DISH Corp. (DISH)
The only significant purchase Witmer made in the second quarter was 8,700,995 shares of DISH Network Corp. (DISH), a position with 2% portfolio weight. The price of the stock averaged $39 per share in the second quarter and has since increased 14%.
DISH Network Corp. was organized in 1995 under the laws of the State of Nevada and started offering the DISH pay-TV service in March 1996. Dish Network Corp. has a market cap of $20.32 billion; its shares were traded at around $44.52 with a P/E ratio of 79.80 and P/S ratio of 1.40. Dish Network Corp. had an annual average earnings growth of 11.1% over the past 10 years.
DISH Network revenue and earnings history:
The Peter Lynch chart would say the stock is undervalued:
IBM (IBM)
IBM (IBM) Witmer bought 2,700 shares of IBM in the second quarter when the price averaged $204 per share. It has since decreased 9%. The holding comprises 0.0028% of her portfolio.
International Business Machines Corporation was incorporated in the State of New York on June 16, 1911, as the Computing-Tabulating-Recording Co. International Business Machines Corp has a market cap of $203.2 billion; its shares were traded at around $185.65 with a P/E ratio of 13.20 and P/S ratio of 2.00. The dividend yield of International Business Machines Corp stocks is 1.90%. International Business Machines Corp had an annual average earnings growth of 12.2% over the past 10 years. GuruFocus rated International Business Machines Corp the business predictability rank of 5-star.
IBM revenue and earnings history:
The Peter Lynch chart says it is undervalued:
Titan Machinery Inc. (TITN)
Witmer purchased 21,100 shares of Titan Machinery in the second quarter when the price averaged 22%. The price has since dropped 21%. The stock’s weighting in the portfolio is 0.0022%.
Titan Machinery Inc. owns and operates a network of service agricultural and construction equipment stores in the U.S. and Europe. Titan Machinery Inc. has a market cap of $367.4 million; its shares were traded at around $17.41 with a P/E ratio of 10.50 and P/S ratio of 0.20. Titan Machinery Inc. had an annual average earnings growth of 29.2% over the past five years.
Titan Machinery revenue and earnings history:
The Peter Lynch chart would say the stock is undervalued:
Interactive Brokers Group Inc. (IBKR)
Witmer purchased 23,200 shares of Interactive Brokers Group in the second quarter when the price averaged $15. The price has since increased 12%. The portfolio weight of the holding is 0.002%.
Interactive Brokers Group Inc. was incorporated in the state of Delaware in November 2006. Interactive Brokers Group Inc. has a market cap of $862.4 million; its shares were traded at around $17.26 with a P/E ratio of 21.40 and P/S ratio of 0.80. The dividend yield of Interactive Brokers Group Inc. stocks is 2.30%. Interactive Brokers Group, Inc. had an annual average earnings growth of 32.7% over the past five years.
IBKR revenue and earnings history:
The Peter Lynch chart would say it is overvalued:
Wells Fargo & Co. (WFC)
Witmer purchased 7,300 shares of Wells Fargo in the second quarter when the price averaged $39. Since then the price has risen 10%. The holding has a 0.0016% portfolio weight.
Wells Fargo & Co. is a corporation organized under the laws of Delaware and a financial holding company and a bank holding company registered under the Bank Holding Company Act of 1956, as amended. Wells Fargo & Co. has a market cap of $227.47 billion; its shares were traded at around $42.84 with a P/E ratio of 11.70 and P/S ratio of 2.70. The dividend yield of Wells Fargo & Co. stocks is 2.50%. Wells Fargo & Co. had an annual average earnings growth of 1.6% over the past 10 years.
Wells Fargo revenue and earnings history:
The Peter Lynch chart would say the stock is undervalued:
Witmer held 54 stocks in her portfolio at the end of the second quarter, and her six new additions except DISH Network (DISH, Financial) are all minor at well under 1% of her portfolio, respectively. The largest five are: IBM (IBM, Financial), Titan Machinery Inc. (TITN, Financial), Interactive Brokers Group Inc. (IBKR, Financial) and Wells Fargo & Co. (WFC, Financial).
DISH Corp. (DISH)
The only significant purchase Witmer made in the second quarter was 8,700,995 shares of DISH Network Corp. (DISH), a position with 2% portfolio weight. The price of the stock averaged $39 per share in the second quarter and has since increased 14%.
DISH Network Corp. was organized in 1995 under the laws of the State of Nevada and started offering the DISH pay-TV service in March 1996. Dish Network Corp. has a market cap of $20.32 billion; its shares were traded at around $44.52 with a P/E ratio of 79.80 and P/S ratio of 1.40. Dish Network Corp. had an annual average earnings growth of 11.1% over the past 10 years.
DISH Network revenue and earnings history:
The Peter Lynch chart would say the stock is undervalued:
IBM (IBM)
IBM (IBM) Witmer bought 2,700 shares of IBM in the second quarter when the price averaged $204 per share. It has since decreased 9%. The holding comprises 0.0028% of her portfolio.
International Business Machines Corporation was incorporated in the State of New York on June 16, 1911, as the Computing-Tabulating-Recording Co. International Business Machines Corp has a market cap of $203.2 billion; its shares were traded at around $185.65 with a P/E ratio of 13.20 and P/S ratio of 2.00. The dividend yield of International Business Machines Corp stocks is 1.90%. International Business Machines Corp had an annual average earnings growth of 12.2% over the past 10 years. GuruFocus rated International Business Machines Corp the business predictability rank of 5-star.
IBM revenue and earnings history:
The Peter Lynch chart says it is undervalued:
Titan Machinery Inc. (TITN)
Witmer purchased 21,100 shares of Titan Machinery in the second quarter when the price averaged 22%. The price has since dropped 21%. The stock’s weighting in the portfolio is 0.0022%.
Titan Machinery Inc. owns and operates a network of service agricultural and construction equipment stores in the U.S. and Europe. Titan Machinery Inc. has a market cap of $367.4 million; its shares were traded at around $17.41 with a P/E ratio of 10.50 and P/S ratio of 0.20. Titan Machinery Inc. had an annual average earnings growth of 29.2% over the past five years.
Titan Machinery revenue and earnings history:
The Peter Lynch chart would say the stock is undervalued:
Interactive Brokers Group Inc. (IBKR)
Witmer purchased 23,200 shares of Interactive Brokers Group in the second quarter when the price averaged $15. The price has since increased 12%. The portfolio weight of the holding is 0.002%.
Interactive Brokers Group Inc. was incorporated in the state of Delaware in November 2006. Interactive Brokers Group Inc. has a market cap of $862.4 million; its shares were traded at around $17.26 with a P/E ratio of 21.40 and P/S ratio of 0.80. The dividend yield of Interactive Brokers Group Inc. stocks is 2.30%. Interactive Brokers Group, Inc. had an annual average earnings growth of 32.7% over the past five years.
IBKR revenue and earnings history:
The Peter Lynch chart would say it is overvalued:
Wells Fargo & Co. (WFC)
Witmer purchased 7,300 shares of Wells Fargo in the second quarter when the price averaged $39. Since then the price has risen 10%. The holding has a 0.0016% portfolio weight.
Wells Fargo & Co. is a corporation organized under the laws of Delaware and a financial holding company and a bank holding company registered under the Bank Holding Company Act of 1956, as amended. Wells Fargo & Co. has a market cap of $227.47 billion; its shares were traded at around $42.84 with a P/E ratio of 11.70 and P/S ratio of 2.70. The dividend yield of Wells Fargo & Co. stocks is 2.50%. Wells Fargo & Co. had an annual average earnings growth of 1.6% over the past 10 years.
Wells Fargo revenue and earnings history:
The Peter Lynch chart would say the stock is undervalued:
