To get the same results, use the S&P 500 Screener here. Setting the parameters to “All Investors” and “Sell,” and leaving all other settings at their default generates the stocks the most gurus sold out of or reduced their positions in. According to all the screener, these stocks for the second quarter were: Microsoft (NASDAQ:MSFT), Pfizer (NYSE:PFE), AIG (NYSE:AIG), Google (NASDAQ:GOOG) and Berkshire Hathaway (NYSE:BRK.B).
Fifteen gurus in total sold or reduced their position in Microsoft in the second quarter. Those that sold out were the Signature Select Canadian Fund, David Einhorn, Paul Tudor Jones and Paul Singer. The guru making the largest cut was Ray Dalio, who slashed his holding by 94.03% and retained 84,204 shares.
Year to date, Microsoft shares have gained over 30%, reaching $34.77 Friday.
Microsoft’s earnings and revenue history:
The Peter Lynch chart shows that the company recently became overvalued:
Eight gurus ended their investment in Pfizer in the second quarter, and 11 reduced their positions. Those that sold out are the Yacktman Fund, Alan Fournier, Tom Russo, the Yacktman Focused Fund, Ray Dalio, George Soros, Richard Snow and Bruce Kovner. The largest cut came from Donald Yacktman, who reduced his Pfizer position by 99.74%, keeping 41,700 shares.
Year to date, Pfizer shares have gained 13%, to trade for $28.34 on Friday, which is near a five-year high.
Pfizer’s earnings and revenue history:
The Peter Lynch chart also suggests it recently became overvalued:
In the second quarter, three gurus sold out of AIG: John Keeley, Ken Heebner and Steve Mandel. Eighteen gurus reduced their position. Jim Simons made the largest reduction, cutting 97.49% of his position and keeping 50,360 shares.
Year to date, AIG shares have gained 34.25% and trade at $47.39 on Friday.
AIG’s earnings and revenue history:
The Peter Lynch chart suggests the stock is undervalued:
One guru sold out of his Google position in the first quarter, Lee Ainslie. Another 18 reduced their position. The largest reduction was seen in Steven Cohen’s portfolio, where he slashed his position 91.17%, keeping 6,357 shares.
The price of Google has increased 23% year to date, and is $870.21 per share Friday.
Google’s revenue and earnings history:
The Peter Lynch chart suggests the company is overvalued:
Berkshire Hathaway (NYSE:BRK.B)
Only Julian Robertson sold out his position in Berkshire Hathaway in the second quarter. Seven reduced their position. Bruce Berkowitz made the biggest reduction, cutting his holding by 52.54%. He kept 726,525 shares.
Berkshire Hathaway’s earnings and revenue history:
The Peter Lynch chart suggests the company has roughly reached its fair value:
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