Bill Nygren (Trades, Portfolio) said in his first-quarter letter to investors of his Oakmark Fund that he found equities the most attractive class, and he purchased three of them in the first quarter: Caterpillar Inc. (CAT, Financial), Precision Castparts Corp (PCP, Financial) and Baker Hughes Inc. (BHI, Financial).
Nygren’s long-term focused fund underperformed the S&P 500 for the first quarter, declinig 1% compared to the index’s 1% gain. But, he said, “We remain confident in the Oakmark Fund’s long-term prospects, and our confidence is supported by the fact that a substantial portion of the recent underperformance has been driven by weakness in the financials sector, which is among the highest potential return sectors of the Fund.”
The Oakmark Fund’s stock portfolio, valued at $16.8 billion, contained 58 stocks at the end of the quarter, with 32% categorized as Financial Services.
Caterpillar Inc. (CAT, Financial)
Nygren purchased 2.73 million Caterpillar Inc. shares, representing 1.3% of the portfolio. The company’s first quarter share price was $83.
Caterpillar Inc. was incorporated under the laws of the State of Delaware on March 12, 1986. Caterpillar Inc. has a market cap of $53.07 billion; its shares were traded at around $87.92 with a P/E ratio of 14.0 and P/S ratio of 1.0. The dividend yield of Caterpillar Inc. stocks is 3.2%. Caterpillar Inc. had an annual average earnings growth of 7.0% over the past 10 years. GuruFocus rated Caterpillar Inc. the business predictability rank of 2.5-star.
Precision Castparts Corp (PCP, Financial)
Nygren purchased 1 million shares of Precision Castparts, representing 1.25% of the portfolio. The company’s first quarter share price was $212.
Precision Castparts Corp was incorporated in the State of Oregon. Precision Castparts Corp has a market cap of $30.71 billion; its shares were traded at around $216.61 with a P/E ratio of 16.80 and P/S ratio of 3.10. The dividend yield of Precision Castparts Corp stocks is 0.10%. Precision Castparts Corp had an annual average earnings growth of 19.20% over the past 10 years. GuruFocus rated Precision Castparts Corp the business predictability rank of 3-star.
Baker Hughes Inc. (BHI, Financial)
Nygren purchased 1.15 million shares of Baker Hughes, representing 0.44% of the portfolio. Baker Hughes’ first quarter share price was $60.
Baker Hughes Inc. is a Delaware corporation which was formed in April 1987. Baker Hughes Inc. has a market cap of $28.21 billion; its shares were traded at around $64.90 with a P/E ratio of 35.80 and P/S ratio of 1.20. The dividend yield of Baker Hughes Inc. stocks is 1.0%. Baker Hughes Inc. had an annual average earnings growth of 5.30% over the past 10 years. GuruFocus rated Baker Hughes Inc. the business predictability rank of 3-star.
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