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Century Management's Year-End Top-Five Holdings

January 10, 2014 | About:
Monica Wolfe

Monica Wolfe

121 followers

Arnold Van Den Berg is the founder of Austin-based Century Management. He and his team seek companies that are trading at discounts to their intrinsic value either because they are lesser known, have a short-term problem or are temporarily out of favor.

As of the fourth quarter Century Management held 79 stocks valued at $1.059 billion. The guru bought 23 new stocks during the fourth quarter for a quarter-over-quarter turnover of 10%. The following five companies are the five largest stock positions held by Century Management as of the close of the fourth quarter.

Jacobs Engineering Group (JEC)

Van Den Berg’s largest position is in Jacobs Engineering where the guru holds on to 896,412 shares. His position in the company represents 0.68% of the company’s shares outstanding and 5.3% of his total portfolio.

During the fourth quarter Van Den Berg reduced his position by -0.89%. The guru sold a total of 8,050 shares in the third quarter price range of $56.12 to $63.76, with an estimated average price of $58.89. The price per share has increased about 6.3% since then.

Van Den Berg’s historical holding history:

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Jacobs Engineering is a professional services firm in the U.S. Its business focuses on providing a range of technical, professional and construction services to a large number of industrial, commercial and governmental clients around the world.

Jacobs Engineering’s historical revenue and net income:

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

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Jacobs Engineering has a market cap of $8.39 billion. Its shares are currently trading at around $63.69 with a P/E ratio of 19.70, a P/S ratio of 0.70 and a P/B ratio of 1.90. The company had an annual average earnings growth of 11.8% over the past ten years.

Corning (GLW)

The guru’s second largest position is in Corning. The guru holds on to 2,915,351 shares, representing 0.20% of the company’s shares outstanding and 4.9% of his total portfolio.

During the fourth quarter Van Den Berg reduced his position -1.14% by selling a total of 33,524 shares. He sold these shares in the third quarter price range of $14.00 to $17.82, with an estimated average price of $16.47. The price per share has jumped up approximately 11.1% since then.

Van Den Berg’s holding history as of the third quarter:

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Corning is a provider of high-performance glass, optical fiber and cable and hardware and equipment products, ceramic substrates, laboratory products and specialized polymer products, advanced optical materials and other technologies.

Corning’s historical revenue and net income:

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The Peter Lynch Chart suggests that Corning is currently undervalued:

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Corning has a market cap of $20.64 billion. Its shares are currently trading at around $14.13 with a P/E ratio of 10.90, a P/S ratio of 2.70 and a P/B ratio of 1.00. The company had an annual average earnings growth of 10.3% over the past five years.

Cisco Systems (CSCO)

Van Den Berg’s third largest holding is in Cisco Systems where the guru maintains 2,060,409 shares of the company’s stock. His position represents 0.04% of the company’s shares outstanding and 4.4% of his total portfolio.

During the third quarter Van Den Berg reduced his holdings -0.93% by selling a total of 19,265 shares. He sold these shares in the third quarter price range of $20.24 to $24.00, with an estimated average price of $22.12. Since then the share price increased a slight 0.5%.

Van Den Berg’s historical holding history:

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The company sells networking and communications products and provides related services. The company's two main products are switches and routers, but Cisco essentially touches everything in the networking industry, from security to storage to application switching.

Cisco’s historical revenue and net income:

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

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Cisco Systems has a market cap of $118.8 billion. Its shares are currently trading at around $22.22 with a P/E ratio of 12.20, a P/S ratio of 2.50 and a P/B ratio of 2.00. The company had an annual average earnings growth of 8.00% over the past ten years.

GuruFocus rated Cisco the business predictability rank of 3-star.

Layne Christensen Company (LAYN)

Van Den Berg’s fourth largest position is in Layne Christensen. The guru holds on to 2,625,610 shares, representing 13.21% of the company’s shares outstanding and 4.2% of his total portfolio.

The guru increased his position in Layne Christensen 34.76% over the fourth quarter. Van Den Berg added 677,305 shares in the fourth quarter price range of $111.37 to $118.56, with an estimated average price of $17.42. Since then the share price has increased approximately 6.7%.

Van Den Berg’s holding history as of the fourth quarter:

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Layne is a global water management, construction and drilling company, providing solutions to the world of essential natural resources — water, mineral and energy. The company provides sustainable products and services with an “enduring commitment to safety, excellence and integrity.”

Layne Christensen’s historical revenue and net income:

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Layne Christensen has a market cap of $369.7 million.  Its shares are currently trading at around $18.59 with a P/S ratio of 0.40 and a P/B ratio of 1.20.

Berkshire Hathaway (BRK.B)

Van Den Berg’s fifth largest position is in Berkshire Hathaway. The guru holds on to 378,985 shares, representing 0.02% of the company’s shares outstanding and 4.2% of his total portfolio.

The guru decreased his position in Berkshire Hathaway -1.28% over the fourth quarter. Van Den Berg sold 4,930 shares in the second quarter price range of $111.37 to $118.56, with an estimated average price of $115.63. Since then the share price has decreased approximately -0.6%.

Van Den Berg’s holding history as of the fourth quarter:

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Berkshire Hathaway is a holding company owning subsidiaries engaged in a number of diverse 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 Peter Lynch Chart suggests that the company is currently undervalued:

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Berkshire Hathaway has a market cap of $268.71 billion. Its shares are currently trading at around $114.97 with a P/E ratio of 14.30, a P/S ratio of 1.50 and a P/B ratio of 1.30. The company had an annual average earnings growth of 6.8% over the past ten years.

GuruFocus rated Berkshire Hathaway the business predictability rank of 2.5-star.

Check out Arnold Van Den Berg’s complete fourth quarter portfolio here.

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Rating: 3.2/5 (6 votes)

Comments

AlbertaSunwapta
AlbertaSunwapta - 7 months ago

Those readers who ever subsrcibed to O.I.D. may recall reading Arnold Van denBerg's incredibly insightful discussion of gold.  That said, it's fascinating to see him adding so broadly to gold shares.  It's a bit like seeing Buffett pick up silver a number of years ago.

 

On another note, does anyone know his equity only performance to date?  I was always amazed at his under the radar, lack of public attention for performing so well.

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