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Top Five Guru-Held Financial Services Companies

May 27, 2014 | About:
Monica Wolfe

Monica Wolfe

123 followers
Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see which financial services companies are held by the most gurus. As of the first quarter, the following five financially-based companies are held by the largest number of gurus.

Wells Fargo (WFC)

As of the closed of the first quarter there were 45 guru shareholders of Wells Fargo. During the past quarter there were 17 gurus buying shares of WFC and 20 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 166.87%.

The top three guru shareholders of Wells Fargo:

1. Warren Buffett: 463,458,123 shares, representing 8.73% of the company’s shares outstanding and 21.8% of Buffett’s total portfolio.

2. Dodge & Cox: 72,553,999 shares, representing 1.37% of the company’s shares outstanding and 3.7% of their total portfolio.

3. Chris Davis (Trades, Portfolio): 57,060,078 shares, representing 0.96% of the company’s shares outstanding and 7% of his total portfolio.

Wells Fargo is a financial services companies, providing a range of retail banking and brokerage, asset and wealth management and corporate and investment banking products and services to customers.

Wells Fargo’s historical revenue and net income:

1401218365633.png

The analysis on Wells Fargo reports that the company’s operating margin is expanding, its dividend yield is close to a 3-year high, its price is near a 10-year high and its revenue has been in decline over the past three years.

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

1401218813027.png

Wells Fargo has a market cap of $265.93 billion. Its shares were traded at around $50.49 with a P/E ratio of 12.60, a P/S ratio of 3.20 and a P/B ratio of 1.70. The company offers a dividend yield of 2.50%. Wells Fargo had an annual average earnings growth of 4.60% over the past ten years.

Citigroup (C)

As of the close of the first quarter there were 42 guru owners of Citigroup. During the past quarter there were 22 gurus buying shares of Citigroup and there were 20 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 101.47%.

The top three guru shareholders of Citigroup:

1. James Barrow (Trades, Portfolio): 22,193,754 shares, representing 0.73% of the company’s shares outstanding and 1.5% of his total assets managed.

2. HOTCHKIS & WILEY: 16,793,560 shares, representing 0.55% of the company’s shares outstanding and 3% of the fund’s total portfolio.

3. Chris Shumway (Trades, Portfolio): 14,114,299 shares, representing 0.46% of the company’s shares outstanding and 8.96% of his total portfolio.

Citigroup is a global financial services holding company, whose businesses provide consumers, corporations, governments and institutions with a range of financial services such as consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management.

Citigroup’s historical revenue and net income:

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The analysis on Citigroup reports that the company’s revenue has been in decline over the past five years. It also notes that the company’s P/S ratio is nearing a 5-year high.

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

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Citigroup has a market cap of $144.54 billion. Its shares are currently being traded at around $47.58 with a P/E ratio of 10.80, a P/B ratio of 0.70 and a P/S ratio of 1.90.

Berkshire Hathaway (BRK.B)

As of the close of the first quarter there were 40 guru owners of Berkshire Hathaway. During the past quarter there were 16 gurus buying shares of BRK.B and there were 20 making sells of their stake in the company. These gurus maintain a combined weighting of 138.38%.

The top three guru shareholders of Berkshire Hathaway:

1. Bill Gates (Trades, Portfolio): 77,039,804 shares, representing 3.3% of the company’s shares outstanding and roughly 48.6% of his total assets managed.

2. Ken Fisher (Trades, Portfolio): 5,118,992 shares, representing 0.22% of the company’s shares outstanding and 1.4% of his total portfolio.

3. Ruane Cunniff (Trades, Portfolio): 4,837,924 shares, representing 0.21% of the company’s shares outstanding as well as 3.2% of his total portfolio.

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:

1401221687069.png

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:

1401221715633.png

Berkshire Hathaway has a market cap of $298.12 billion. Its shares are currently trading at around $127.52 with a P/E ratio of 15.50, a P/S ratio of 1.60 and a P/B ratio of 1.30. 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.

Bank of America (BAC)

As of the close of the first quarter there were 38 guru owners of Bank of America. During the past quarter there were ten gurus buying shares of BAC and there were 20 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 118.19%.

The top three guru shareholders of Bank of America:

1. Dodge & Cox: 124,668,488 shares, representing 1.16% of the company’s shares outstanding and 2.2% of their total portfolio.

2. Bruce Berkowitz: 98,942,515 shares, representing 0.92% of the company’s shares outstanding and 17.2% of his total portfolio.

3. James Barrow: 83,858,673 shares, representing 0.78% of the company’s shares outstanding and 2.1% of his total assets managed.

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.

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

1401225222520.png

Bank of America has a market cap of $160.05 billion. Its shares are currently trading at around $15.22 with a P/E ratio of 20.40, a P/S ratio of 2.00 and a P/B ratio of 0.70. The company had an annual average earnings growth of 16.50% over the past five years.

American International Group (AIG)

As of the close of the first quarter there were 36 guru shareholders of American International Group. During the past quarter there were 13 gurus buying shares of AIG and there were 22 gurus making sells of their stake in the company. These gurus maintain a combined weighting 155.37%.

The top three guru shareholders of AIG:

1. Bruce Berkowitz: 75,681,614 shares, representing 5.13% of the company’s shares outstanding and approximately 38.2% of his total portfolio.

2. Fairholme Fund: 74,090,125 shares representing 5.02% of the company’s shares outstanding and 43.6% of its total assets managed.

3. HOTCHKIS & WILEY: 18,783,748 shares representing 1.27% of the company’s shares outstanding and 3.5% of its total portfolio.

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:

1401226972547.png

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 undervalued:

1401227035257.png

American International Group has a market cap of $77.76 billion. Its shares are currently trading at around $53.75 with a P/E ratio of 9.50, a P/S ratio of 1.20 and a P/B ratio of 0.80.

You can check out other top held sectors of the market by using the Aggregated Screener here.

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