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Bill Nygren's Top Five

November 27, 2013 | About:
Monica Wolfe

Monica Wolfe

133 followers
Oakmark’s Bill Nygren reported his third quarter portfolio recently which highlighted a rather eventful quarter for the guru. Nygren purchased two new stocks over the past quarter bringing his total number of stocks to 53. His portfolio is currently valued at $9.9 billion.

Bank of America (BAC)


The guru’s largest position is in Bank of America where he holds on to 22,950,000 shares of the company’s stock. His position in Bank of America makes up of 3.2% of his total portfolio and 0.21% of the company’s shares outstanding.

Nygren did not alter his position over the past quarter. Since his last buy in the second quarter, the price per share has gone up approximately 11.3%.

Nygren’s historical holding history:

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Bank of America, through its subsidiaries, provides a diversified range of banking and non-banking financial services and products through five business segments: Deposits, Card Services, Consumer Real Estate Services, Global Commercial Banking, Global Banking & Markets and Investment Management.

Bank of America’s historical revenue and net income:

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The analysis on Bank of America reports that the company’s dividend yield is near a 10-year low and that its revenue has been in decline over the past five years.

1. Dodge & Cox: 128,550,121 shares, representing 1.2% of the company’s shares outstanding and 2% of their total portfolio.

2. Bruce Berkowitz: 99,696,715 shares, representing 0.93% of the company’s shares outstanding and 16.3% of his total portfolio.

3. James Barrow: 83,736,733 shares, representing 0.78% of the company’s shares outstanding and 1.8% of his total assets managed.

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

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Bank of America has a market cap of $169.06 billion. Its shares are currently trading at around $15.85 with a P/E ratio of 24.20, a P/S ratio of 2.10 and a P/B ratio of 0.80.

American International Group (AIG)

Nygren’s second largest holding is in American International Group where he holds on to 5,295,000 shares of the company’s stock. His position in AIG represents 2.6% of his total portfolio and 0.36% of the company’s shares outstanding.

During the third quarter Nygren increased his position 1.92% by purchasing an additional 100,000 shares of AIG stock. He bought these shares in the price range of $ to $, with an estimated average quarterly price of $47.53 per share. Since then the price per share has increased approximately 4.2%.

Nygren’s historical holding history:

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American International Group is a holding company which, through its subsidiaries, is engaged in a range of insurance and insurance-related activities in the United States and abroad.

AIG’s historical revenue and net income:

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The analysis on AIG reports that the company’s dividend yield is near a 10-year low, its revenue has been in decline over the past five years and its P/S ratio is nearing a 5-year high.

1. Bruce Berkowitz: 84,931,830 shares, representing 5.75% of the company’s shares outstanding and 48.9% of his total portfolio.

2. Fairholme Fund: 79,280,825 shares representing 5.37% of the company’s shares outstanding and 51.2% of its total assets managed.

3. HOTCHKIS & WILEY: 13,624,257 shares representing 0.92% of the company’s shares outstanding and 3% of its total portfolio.

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

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American International Group has a market cap of $73.07 billion. Its shares are currently trading at around $49.63 with a P/E ratio of 23.70, a P/S ratio of 1.20 and a P/B ratio of 0.70.

Capital One Financial (COF)

The guru’s third largest position goes to Capital One where he maintains 3,753,000 shares of the company’s stock. His position makes up for 2.6% of his total assets managed and 0.64% of the company’s shares outstanding.

Bill Nygren did not alter his position in Capital One over the past quarter. His last buy came in the second quarter of 2013, and since then the price per share has increased approximately 21.2%.

Nygren’s holding history of Capital One as of the third quarter:

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Capital One is a diversified financial services company who's banking and non-banking subsidiaries market a variety of financial products and services.

Capital One’s historical revenue and net income:

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The analysis on Capital One reports that the company’s price is near a 5-year high, its operating margin is expanding and its dividend yield is nearing a 3-year high.

The top guru shareholders of Capital One:

1. Dodge & Cox: 47,844,267 shares, representing 8.17% of the company’s shares outstanding and 3.7% of their total portfolio.

2. James Barrow: 21,269,039 shares, representing 3.63% of the company’s shares outstanding and 2.3% of his total assets managed.

3. Andreas Halvorsen: 15,680,804 shares, representing 2.68% of the company’s shares outstanding and 6% of his total portfolio.

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

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Capital One Financial has a market cap of $41.22 billion. Its shares are currently trading at around $71.49 with a P/E ratio of 10.20, a P/S ratio of 1.80 and a P/B ratio of 1.00.

TE Connectivity (TEL)

Bill Nygren’s fourth largest position is in TE Connectivity where he maintains 4,686,000 shares of the company’s stock. His holdings in TE Connectivity make up for 2.5% of his total assets managed and 1.13% of the company’s shares outstanding.

The guru did not change his position in his holdings over the duration of the third quarter. His last move in TEL was in the first quarter of 2013 when he added 200,000 shares to his holdings. Since this buy the price per share has increased about 31.3%.

Nygren’s historical holding history:

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TE Connectivity designs and manufactures products involved in electronic connections for industries including automotive, energy and industrial, broadband communications, consumer devices, health care and aerospace and defense.

TE Connectivity’s historical revenue and net income:

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The analysis on TE Connectivity reports that the company’s dividend yield is near a 5-year low, its price is near a 10-year high and its revenue has been in decline over the past three years.

Top guru shareholders of TE Connectivity:

1. Dodge & Cox: 35,743,431 shares, representing 8.64% of the company’s shares outstanding and 2.1% of their total portfolio.

2. Richard Pzena: 5,961,910 shares, representing 1.44% of the company’s shares outstanding and 2% of his total assets managed.

3. Charles Brandes: 5,699,324 shares, representing 1.38% of the company’s shares outstanding and 3.8% of his entire portfolio.

The Peter Lynch chart shows that TE currently appears to be overvalued:

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TE Connectivity has a market cap of $21.56 billion. Its shares are currently trading at around $52.53 with a P/E ratio of 17.40, a P/S ratio of 1.70 and a P/B ratio of 2.70.

UnitedHealth Group (UNH)

The guru’s fifth largest holding goes to UnitedHealth where he maintains 3,460,000 shares of the company’s stock. His holdings represent 2.5% of his total portfolio and 0.34% of the company’s shares outstanding.

The guru did not alter his position in UnitedHealth Group over the past quarter. The price per share has increased approximately 20% since his last buy in the second quarter.

Nygren’s historical holding history:

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UnitedHealth is a health and well-being company that helps people live healthier lives and help make health care work better. The company is helping individual's access quality care at an affordable cost; simplifying health care administration and delivery; strengthening the physician/patient relationship; and empowering physicians, health care professionals, consumers, and employers in the health system with actionable data to make better, more informed decisions.

UnitedHealth’s historical revenue and net income:

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The analysis on UnitedHealth reports that the company’s price is nearing a 10-year high, its dividend yield is at a 10-year high and it has shown predictable revenue and earnings growth.

Top guru shareholders of UnitedHealth:

1. Vanguard Health Care: 19,001,100 shares, representing 1.87% of the company’s shares out.

2. Chris Davis: 14,880,244 shares, representing 1.46% of the company’s shares outstanding.

3. Meryl Witmer: 11,243,651 shares, representing 1.11% of the company’s shares outstanding.

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

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UnitedHealth has a market cap of $74.86 billion. Its shares are currently trading at around $74.36 with a P/E ratio of 14.30, a P/S ratio of 0.60 and a P/B ratio of 2.30. The company had an annual average earnings growth of 19.00% over the past five years.

GuruFocus rated UnitedHealth the business predictability rank of 3.5-star.

Check out Bill Nygren’s complete third quarter portfolio here.

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Rating: 2.5/5 (4 votes)

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