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Scott Black’s Top Five Third Quarter Holdings

October 22, 2013 | About:
Monica Wolfe

Monica Wolfe

133 followers
Scott Black is the chairman, president, chief investment officer and founder of Boston-based Delphi Management, and is often featured in Barron’s. Delphi Management’s investment philosophy states that they “only invest in companies that meet our internally developed set of rigorous quantitative criteria.” The fund also only invests in equity securities of US-listed companies, and takes only long positions.

Over the past quarter Guru Scott Black purchased 14 new stocks, bringing his total third quarter portfolio to 122 stocks valued at $881 million.

The following five companies are Scott Black’s top five stock holdings as of the close of the third quarter.

Berkshire Hathaway (BRK.B)

Black’s largest holding is in Berkshire Hathaway where the guru holds on to 203,927 shares of the company’s stock. His position in the company takes up 2.6% of his portfolio and 0.01% of the company’s shares outstanding.

Black made a slight reduction in his position in Berkshire Hathaway over the duration of the third quarter. The guru cut his stake -4.04% by selling 8,579 shares. He sold these shares in the third quarter price range of $111.22 to $118.94, with an estimated average quarterly price of $115.36 per share. From the average price, the share price is up about 1.6%.

Scott Black’s historical holding history:

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Berkshire Hathaway is a conglomerate holding company owning subsidiaries engaged in a number of business activities, including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, service and retailing.

Berkshire Hathaway’s historical revenue and net income:

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The analysis on Berkshire Hathaway reports that the company’s price is near a 10-year high, it has shown predictable revenue and earnings growth and its operating margin is expanding.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Berkshire Hathaway has a market cap of $274.22 billion. Its shares are currently trading at around $117.33 with a P/E ratio of 15.40, a P/S ratio of 1.60 and a P/B ratio of 1.40. Berkshire Hathaway had an annual average earnings growth of 9.10% over the past ten years.

GuruFocus rated Berkshire Hathaway the business predictability rank of 3-star.

WPP PLC (WPPGY)

Black’s second largest position is currently in WPP PLC. As of the third quarter Black holds on to 141,555 shares of the company’s stock, representing 1.7% of his total portfolio and 0.05% of the company’s shares outstanding.

During the third quarter Black cut his position -3.58% by selling 5,261 shares of the company’s stock. He sold these shares in the price range of $86.28 to $104.91, with an estimated average quarterly price of $94.09. The share price has since then dropped 12.7%.

Black’s holding history as of the third quarter:

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WPP PLC is a communications services organization offering national and multinational clients a comprehensive communications services. It operates in four reportable segments: Advertising and Media Investment Management; Consumer Insight; Public Relations & Public Affairs; and Branding & Identity, Healthcare and Specialist Communications.

WPP’s historical revenue and net income:

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The analysis on WPP Reports that the company’s price is near a 10-year high, its P/E and P/S ratios are near 10-year highs and it has issued GBP701.7 million of debt over the past three years.

The Peter Lynch Chart suggests that the company is currently overvalued:

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WPP PLC has a market cap of $28.37 billion. Its shares are currently trading at around $106.32 with a P/E ratio of 20.70, a P/S ratio of 1.70 and a P/B ratio of 2.50. The dividend yield of WPP stocks is currently at 2.20%. The company had an annual average earnings growth of 11.20% over the past ten years.

Viacom (VIAB)

Black’s third largest holding is in Viacom where the guru holds on to 179,747 shares of the company’s stock. His position in the company represents 1.7% of his portfolio and 0.04% of Viacom’s shares outstanding.

During the third quarter Black reduced his position -3.76% by selling a total of 7,021 shares of the company’s stock. He sold these shares in the third quarter price range of $67.54 to $84.42, with an estimated average quarterly price of $77.39. Since his reduction, the price per share has increased an average of 9.1%.

Black’s historical holding history:

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Viacom is an entertainment company that connects with its audiences through television, motion picture, online and mobile platforms in over 160 countries. Viacom operates in two segments: MTV Networks, which includes MTV Networks and BET Networks, and Filmed Entertainment.

Viacom’s historical revenue and net income:

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The analysis on Viacom reports that the company’s revenue has slowed down over the past year, its operating margin is expanding, its dividend is at a 2-year low and over the past three years it has issued around $2.2 billion of debt.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Viacom has a market cap of $40.42 billion. Its shares are currently trading at around $84.76 with a P/E ratio of 19.00, a P/S ratio of 3.10 and a P/B ratio of 6.00. The company had an annual average earnings growth of 26.80% over the past ten years.

CBS Corporation (CBS)

Scott Black’s fourth largest position is in CBS Corporation where the guru holds on to 248,619 shares of the company’s stock. His holdings make up for 1.6% of his total portfolio and 0.04% of the company’s shares outstanding.

During the third quarter Black reduced his holdings -4.21% by selling 10,940 shares. Black sold these shares in the third quarter price range of $48.80 to $56.81, with an estimated average quarterly price of $53.20. Since then the price per share has increased about 12.3%.

Black’s historical holding history:

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CBS is a mass media company with operations in the following segments: Television, Radio, Outdoor and Parks/Publishing.

CBS’s historical revenue and net income:

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The analysis on CBS reports that the company’s dividend yield is near a 2-year low, its price is near a 5-year high and its P/B and P/S ratios are also near historical highs.

The Peter Lynch Chart suggests that the company is currently overvalued:

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CBS has a market cap of $36.03 billion. Its shares are currently trading at around $59.57 with a P/E ratio of 22.40, a P/S ratio of 2.60 and a P/B ratio of 3.70.

Mylan Inc (MYL)

Black’s fifth largest holding is in Mylan Inc where he currently holds on to 359,799 shares. His position in the company represents 1.6% of his total portfolio and 0.09% of the company’s shares outstanding.

During the third quarter Black reduced his position by -4.89%. The guru sold a total of 18,485 shares in the price range of $30.37 to $38.95, with an estimated average quarterly price of $35.20. Since then the price per share is up about 10.1%.

Scott Black’s holding history of Mylan as of the third quarter:

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Mylan and its subsidiaries make up a global pharmaceutical company that develops, licenses, manufactures, markets and distributes generic and branded generic pharmaceuticals, specialty pharmaceuticals and active pharmaceutical ingredients.

Mylan’s historical revenue and net income:

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The analysis on Mylan reports that the company’s price is near a 10-year high, its revenue has been in decline over the past five years, they have issued $363.26 million of debt over the past three years and its Piotroski F-Score is high, indicating that the company is in a healthy situation.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Mylan has a market cap of $14.81 billion. Its shares are currently trading at around $38.78 with a P/E ratio of 23.70, a P/S ratio of 2.30 and a P/B ratio of 5.00. Mylan had an annual average earnings growth of 12.60% over the past five years.

Check out Scott Black’s complete third quarter portfolio here.

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