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Whitney Tilson's Year-End Top Five

Monica Wolfe

Monica Wolfe

118 followers

Whitney Tilson is the founder and managing partner of T2 Partners and the Tilson Mutual Funds. Along with managing these funds he also authored several investing books as well as numerous articles for "Forbes" and similar money magazines. The guru is an author and a disciple of the Graham-Dodd-Buffett-Munger school of value investing.

During the fourth quarter the guru and his fund purchased 5 new stocks, bringing his total portfolio holdings to 20 stocks valued at $61 million. The following five companies represent Tilson’s top five fourth quarter holdings.

Howard Hughes Corp (HHC)

Tilson’s largest position is in Howard Hughes where the guru maintains 60,638 shares. His holdings in the company represent 11.9% of his total portfolio and 0.15% of the company’s shares outstanding.

Over the duration of the fourth quarter Tilson reduced his holdings -3.48% by selling a total of 2,186 shares. He sold these shares in the quarterly price range of $105.97 to $121.13, with an average quarterly price of $113.84. Since then the price per share has increased approximately 9%.

Tilson’s historical holding history:

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Howard Hughes is engaged in the development of master planned communities and other strategic real estate development opportunities across the U.S. The company operates its business in two lines of business: Master Planned Communities and Strategic Development.

Howard Hughes’ historical revenue and net income:

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The analysis on Howard Hughes reports that the company’s revenue has been in decline over the past three years and its price is near a 5-year high.

Howard Hughes has a market cap of $4.91 billion. Its shares are currently trading at around $124..08 with a P/E ratio 10.80, a P/S ratio of 9.50 and a P/B ratio of 2.10.

Berkshire Hathaway (BRK.B)

Tilson’s second  largest position is in Berkshire Hathaway where he holds on to 48,822 shares of the company’s stock. His holdings represent 9.4% of his total portfolio.

During the past quarter Tilson cut his holdings a slight -3.18% by selling 1,602 shares of Berkshire Hathaway. He sold these shares in the quarterly price range of $111.37 to $118.56, with an estimated average quarterly price of $115.63. Since then the price per share has decreased approximately -5.7%.

Whitney Tilson’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 undervalued:

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Berkshire Hathaway has a market cap of $255.18 billion. Its shares are currently trading at around $109.158 with a P/E ratio of 13.60, a P/S ratio of 1.40 and a P/B ratio of 1.30. Berkshire Hathaway had an annual average earnings growth of 6.80% over the past ten years.

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

American International Group (AIG)

Tilson’s third largest holding is in American International Group where he maintains 110,217 shares. His position in the company represents 9.2% of his total portfolio as well as 0.01% of the company’s shares outstanding.

During the fourth quarter Tilson made a decrease in his holdings of -37.2%. The guru sold a total of 65,284 shares of the company’s stock in the quarterly price range of $47.30 to $52.30, with an estimated average quarterly price of $49.84. Since then the price per share has dropped approximately -5.91%.

Tilson’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.

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

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American International Group has a market cap of $69.02 billion. Its shares are currently trading at around $46.88 with a P/E ratio of 22.10, a P/S ratio of 1.10 and a P/B ratio of 0.70.

Hertz Global Holdings (HTZ)

The guru’s fourth largest holding goes to Hertz Global Holdings where he maintains 134,765 shares of the company’s stock.  This position makes up for 6.3% of his total holdings as well as 0.03% of the company’s shares outstanding.

During the fourth quarter Tilson upped his stake 11.34% by purchasing a total of 13,725 shares. He bought these shares near the average quarterly price of $23.81 per share, and since then the price per share has increased approximately 7.4%.

Tilson’s historical holding history:

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The company owns worldwide airport general use car rental brand and equipment rental businesses in the US and Canada. Hertz’s business consists of two reportable segments: rental and leasing of cars, crossovers and light trucks and rental of industrial, construction and material handling equipment.

Hertz’s historical revenue and earnings growth:

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

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Hertz Global Holdings has a market cap of $11.49 billion.  Its shares are currently trading at around $25.58 with a P/E ratio of 36.80, a P/S ratio of 1.10 and a P/B ratio of 3.70.  Hertz Global Holdings had an annual average earnings growth of 14.80% over the past ten years.

Air Products & Chemicals (APD)

Tilson’s fifth largest position goes to Air Products & Chemicals where he maintains 32,505 shares of the company’s stock. His position in APD represents 5.9% of his total portfolio and 0.02% of the company’s shares outstanding.

Tilson bought in to Air Products for the first time in the third quarter. So he purchased his shares in the quarterly price range of $102.58 to $113.66, with an estimated average quarterly price $108.97 per share. Since then the price per share has dropped approximately -4.4%.

Tilson’s historical holding history:

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Air Products & Chemicals provides atmospheric gases, process and specialty gases, performance materials, equipment and services, to a wide range of industries. The company is also a supplier of hydrogen and helium. It also provides semiconductor materials, refinery hydrogen, natural gas liquefaction, and advanced coatings and adhesives.

Air Products’ historical revenue and net income:

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The analysis on Air Products and Chemicals reports that the company’s price is near its 10-year high, it has shown predictable revenue and earnings growth and its operating margin is expanding. The GuruFocus analysis also reports that the company has issued $1.8 billion over the past three years.

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

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Air Products & Chemicals has a market cap of $22.05 billion. Its shares are currently trading at around $104.15 with a P/E ratio of 22.00, a P/S ratio of 2.20 and a P/B ratio of 3.30. The company had an annual average earnings growth of 4.60% over the past ten years.

Check out Whitney Tilson and T2 Partners’ fourth quarter holdings here.

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Rating: 3.3/5 (7 votes)

Comments

wsjalerts13
Wsjalerts13 - 5 months ago

This guy does nothing but copies other managers, pure and simple.

AlbertaSunwapta
AlbertaSunwapta - 5 months ago

^ Hmmm. Funny, that's why we are all here at gurufocus isn't it?

As for Tilson, that's hard to prove and if so, what's wrong with that? At any point in time, value investors can be expected to be looking at the same group of stocks due to their fundamentally cheap price. Successful concentrated value investors must to some degree out of necessity, look at a smaller pool of larger cap securities. Expect overlap.

Anyway, someone owns everything out there, so as you research a stock you come across other investor commentaries and then decide to agree or disagree. So you're likely copying someone as you consciusly or unconsciously adopt their reasoning. Figuring out what the value is for oneself and then allocating the right amount at the right price and at the right time is the key.

Similarly, in one of the early Buffett biographies is was mentioned that Buffett always asked everyone he talked to what they were buying. (But he never revealed what he was buying.) Of course, maybe he wasn't copying but figuring out where the hidden gems still may lay.

Note: A few years ago I found HHC in Tilson's portfolio, researched it for myself, but using Tilson's public research, and bought it. It was a fairly profitable move.

DfiinancialH
DfiinancialH - 5 months ago

Tilson is a loser his track record is worst than my 6 years old son. I'm astonished that a failure like him can still get media attention, he's a terrible analyst, he doesn't understand business and almost all his clients left him. He shorted netflix, now Lumber for silly reasons like save the trees and knows nothing about their margins and their model and the business they're in. Really whenever he does something I take the other side, I don't even have to study anything, going against Tilson is a sure bet.

wsjalerts13
Wsjalerts13 - 5 months ago

Hmmmmm ..No. The key is to learn, rather than copy, big difference...

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