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Former Berkshire Investor Lou Simpson, Top Holdings Update from Second Quarter

Sally Jones

Sally Jones

49 followers
“Portfolio manager for Warren Buffett” looks great on the vita.

Warren Buffett called Lou Simpson “one of the investment greats” as Simpson departed Berkshire Hathaway in 2010 after a distinguished career. Upon his retirement from GEICO, a Berkshire subsidiary, Simpson managed more than $4 billion in stocks. At age 74, Lou Simpson started his own investment firm, SQ Advisors LLC, in Naples, Fla.

SQ Advisors’ current portfolio lists 15 stocks (one of them new) and a total value at $1.69 billion. The firm has a quarter-over-quarter turnover of 8%.

Here's a second quarter 2013 update, with a focus on Guru Lou Simpson’s current top six holdings:

Up 34% over 12 months

No. 1: Berkshire Hathaway Inc. (BRK.B)

Weightings: 10.5%

Shares Owned: 1,580,621

Berkshire Hathaway Inc. has a market cap of $267.93 billion; its shares were traded at around $114.64 with a P/E ratio of 15.10 and P/S ratio of 1.50. Berkshire Hathaway Inc. had an annual average earnings growth of 7.8% over the past 10 years. GuruFocus rated Berkshire Hathaway the business predictability rank of 3-star.

Lou Simpson holds 0.07% of shares outstanding, currently valued at $176.9 million.

As of the second quarter of 2013, he has averaged a gain of 44% on 1,583,384 shares bought at an average price of $80.07 per share. On shares sold, he averaged a gain of 5% on 2,763 shares sold at an average price of $110.02 per share.

Tracking historical pricing:

1377112879742.png

Up 12% over 12 months

No. 2: Directv (DTV)

Weightings: 10.4%

Shares Owned: 2,866,880

The company has a market cap of $31.87 billion; its shares were traded at around $58.05 with a P/E ratio of 12.30 and P/S ratio of 1.13. Directv had an annual average earnings growth of 28.5% over the past five years.

Directv is a provider of digital television entertainment in the United States and Latin America.

Lou Simpson holds 0.50% of shares outstanding, currently valued at $176.6 million.

As of the second quarter of 2013, he has averaged a gain of 21% on 2,866,880 shares bought at an average price of $48.39 per share.

Tracking historical pricing:

1377113094317.png

Up 43% over 12 months

No. 3: TE Connectivity Ltd. (TEL)

Weightings: 9.4%

Shares Owned: 3,483,671

Electronics component company, TE Connectivity Ltd. has a market cap of $20.73 billion; its shares were traded at around $50.12 with a P/E ratio of 16.70 and P/S ratio of 1.60. The dividend yield of TEL stocks is 1.30%.

Lou Simpson holds 0.83% of shares outstanding, currently valued at $158.6 million.

As of the second quarter of 2013, he has averaged a gain of 49% on 3,491,828 shares bought at an average price of $33.56 per share. On shares sold, he averaged a gain of 14% on 8,157 shares sold at an average price of $43.79 per share.

Tracking historical pricing:

1377113556973.png

Up 65% over 12 months

No. 4: Charles Schwab Corp. (SCHW)

Weightings: 9.2%

Shares Owned: 7,307,325

Charles Schwab Corp. has a market cap of $27.9 billion; its shares were traded at around $21.71 with a P/E ratio of 32.60 and P/S ratio of 5.60. The dividend yield of SCHW stocks is 1.10%. Charles Schwab Corp. had an annual average earnings growth of 4.4% over the past 10 years.

Lou Simpson holds 0.57% of shares outstanding, currently valued at $155.1 million.

As of the second quarter of 2013, he has averaged a gain of 72% on 7,307,325 shares bought at an average price of $12.62 per share.

His holding history:

1377115585276.png

Up 3% over 12 months

No. 5: Oracle Corporation (ORCL)

Weightings: 9.2%

Shares Owned: 5,043,803

Oracle Corporation has a market cap of $150.92 billion; its shares were traded at around $32.59 with a P/E ratio of 14.50 and P/S ratio of 4.19. The dividend yield of Oracle Corporation stocks is 0.70%. Oracle Corporation had an annual average earnings growth of 20% over the past 10 years. GuruFocus rated Oracle Corporation the business predictability rank of 5-star.

Lou Simpson holds 0.11% of shares outstanding, currently valued at $154.9 million.

As of the second quarter of 2013, he has averaged a gain of 2% on 5,043,803 shares bought at an average price of $31.74 per share.

Tracking historical pricing:

1377113940501.png

Up 25% over 12 months

No. 6: Wells Fargo & Co. (WFC)

Weightings: 8.8%

Shares Owned: 3,611,414

Wells Fargo & Co. has a market cap of $226.3 billion; its shares were traded at around $42.62 with a P/E ratio of 11.60 and P/S ratio of 2.60. The dividend yield of WFC stocks is 2.50%. Wells Fargo & Co. had an annual average earnings growth of 1.6% over the past 10 years.

Lou Simpson holds 0.07% of shares outstanding, currently valued at $149 million.

As of the second quarter of 2013, he has averaged a gain of 46% on 3,611,414 shares bought at an average price of $29.23 per share.

Tracking historical pricing:

1377114129080.png

Guru Lou Simpson serves as the managing member and chairman of SQ Advisors LLC, and has numerous professional affiliations.

Here is the complete portfolio of Lou Simpson.



Be sure to read:

1. Lou Simpson's Undervalued Stocks

2. Lou Simpson's Top Growth Companies

3. Lou Simpson's High Yield stocks

4. Stocks that Lou Simpson 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: 3.3/5 (3 votes)

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