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Top Stocks Warren Buffett and George Soros Both Own

December 23, 2013 | About:
Holly LaFon

Holly LaFon

250 followers

Warren Buffett is the fourth wealthiest person in the world, and George Soros the thirtieth. Both made their fortunes via the stock market and investing, though with very different approaches. Buffett buys stakes in stable, high-quality companies and takes a long-term view, while Soros is more apt to speculate in markets, buying and selling based on short term aberrations or misunderstandings he can exploit.

But sometimes the two financiers, from their own perspectives, see value in the same stock. As of the third quarter, these are the top holdings they hold in common. Most of them have far outperformed the S&P 500 this year and reached new highs recently.

Visa (V)

Warren Buffett owns 1,555,459 shares of V, valued as $297 million as of Sept. 30, 2013, which accounts for 0.32% of his equity portfolio. George Soros owns 67,801 shares of V, valued as $13 million as of Sept. 30, 2013, which accounts for 0.14% of his equity portfolio.

Soros initiated a Visa Inc. stake in third quarter 2013, exactly two years after Buffett did. It was also at more than twice the price – $185 to Buffett’s $87. Visa’s share price has increased 297% over the past five years.

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Visa Inc. is an electronic payments company operating in over 200 countries and territories. Visa Inc. has a market cap of $168.2 billion; its shares were traded at around $215.97 with a P/E ratio of 28.50 and P/S ratio of 12.03. The dividend yield of Visa Inc. stocks is 0.64%. Visa Inc. had an annual average earnings growth of 18.20% over the past five years.

This month, Visa shares have already climbed approximately 6% to new all-time highs on news that it and MasterCard (MA) settled a years-long $5.7 billion class-action law suit regarding credit card fees.

Chicago Bridge & Iron Co. (CBI)

Warren Buffett owns 9,550,755 shares of CBI, valued as $647 million as of Sept. 30, 2013, which accounts for 0.7% of his equity portfolio. George Soros owns 200,000 shares of CBI, valued as $14 million as of Sept. 30, 2013, which accounts for 0.15% of his equity portfolio.

In this case, Soros owns a put position on CBI which he began in second quarter 2011, predating Buffett’s first and second quarter of 2013 position. The company’s share price soared 76% year to date.

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Chicago Bridge & Iron Company was founded in 1889. It provides conceptual design, technology, engineering, procurement, fabrication, construction and commissioning services to customers in the energy, petrochemical and natural resource industries.

Chicago Bridge & Iron Company has a market cap of $8.81 billion; its shares were traded at around $81.75 with a P/E ratio of 24.90 and P/S ratio of 0.90. The dividend yield of Chicago Bridge & Iron stocks is 0.20%. Chicago Bridge & Iron had an annual average earnings growth of 19.80% over the past 10 years.

The company’s growth this year has to do with a combination of a stream of new projects and the acquisition of Shaw Group. In the third quarter a revenue increase of 107% year over year, and $117.7 million in net income, compared to $80.2 million last year.

General Motors Co (GM)

Warren Buffett owns 40 million shares of GM, valued as $1,439 million as of Sept. 30, 2013, which accounts for 1.6% of his equity portfolio. George Soros owns 1,283,000 shares of GM, valued as $46 million as of Sept. 30, 2013, which accounts for 0.5% of his equity portfolio.

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General Motors Company designs, builds and sell cars, trucks and automobile parts. General Motors Co. has a market cap of $56.93 billion; its shares were traded at around $40.99 with a P/E ratio of 13.20 and P/S ratio of 0.43.

GM stock reached new multi-year highs this quarter as the government officially sold off the remainder of its $49.5 billion ownership in the company it held since its 2009 bailout. GM will also install a new CEO, Mary Barra, on Jan. 15, the first leadership transition since its emergence from bankruptcy in 2009.

DirecTV (DTV)

Warren Buffett owns 36,514,700 shares of DTV, valued as $2,183 million as of Sept. 30, 2013, which accounts for 2.4% of his equity portfolio. George Soros owns 503,453 shares of DTV, valued as $30 million as of Sept. 30, 2013, which accounts for 0.33% of his equity portfolio.

While Buffett amassed a 6.65% stake in DTV since third quarter 2011, Soros has been trading the stock off and on since 2008. The stock’s price rose 33% year to date to touch new 52-week highs in December.

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DirecTV is a provider of digital television entertainment in the U.S. and Latin America. DirecTV has a market cap of $34.83 billion; its shares were traded at around $66.28 with a P/E ratio of 12.70 and P/S ratio of 1.22. DirecTV had an annual average earnings growth of 29.40% over the past five years.

DirecTV revenues in the third quarter increased 15% to $1.9 billion, as its subscriber base grew by 139,000 net new members to 37 million total subscribers. Net income increased 24% from the previous year to $699 million due to higher operating profit and lower interest expense as a result of a legal settlement during the quarter.

To see more stocks owned by two or more gurus in common, try GuruFocus Consensus Picks here.


Rating: 3.0/5 (6 votes)

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