Warren Buffett (Trades, Portfolio) has been called "The Oracle of Omaha" for his impressive investing prowess. He follows a value investing strategy that is an adaptation of Benjamin Graham's approach. Following are the stocks in which he reduced his stakes during the third quarter.
He reduced his stake in Chicago Bridge & Iron Co. (CBI) by 78.74% with an impact of -0.34% on the portfolio. The current stake is 0.06% of his total assets and 1.89% of the company’s outstanding shares.
GuruFocus gives Chicago Bridge & Iron a profitability and growth rating of 8 out of 10 with negative returns of ROE 10.77% and ROA 2.97% that are underperforming 88% of the companies in the Global Engineering & Construction industry. Financial strength has a rating of 7 out of 10 with a positive cash-to-debt of 0.17 that is below the industry median of 0.63.
The company provides conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management and environmental services to customers in the energy infrastructure market throughout the world and is a provider of diversified government services. CBI's performance remains, and its new awards continue to emphasize, the benefit of its strong competitive positioning, integrated delivery platform, selectivity and healthy underpinning.
The company’s largest shareholder among the gurus is David Einhorn (Trades, Portfolio) with 7.13% of outstanding shares followed by David Tepper (Trades, Portfolio) with 1.2% and Joel Greenblatt (Trades, Portfolio) with 0.86%.
He reduced his stake in Goldman Sachs Group Inc. (GS) by 13.24% with an impact of -0.32% on the portfolio. The current stake is 1.49% of his total assets and 2.57% of the company’s outstanding shares.
GuruFocus gives Goldman Sachs Group a profitability and growth rating of 5 out of 10 with easy ROE 8.26% that is outperforming 58% of the companies in the Global Capital Markets industry. Financial strength has a rating of 7 out of 10 with a positive cash-to-debt of 0.27 that is far below the industry median of 18.63.
It is a bank holding company and a financial holding company regulated by the Board of Governors of the Federal Reserve System. During the third quarter Goldman Sachs ranked first in worldwide announced and completed mergers and acquisitions for the year to date and also ranked first in worldwide equity and equity-related offerings and common stock offerings for the year to date.
Dodge & Cox is the second-largest shareholder of the company after Buffett with 2.54% of outstanding shares, followed by Bill Nygren (Trades, Portfolio) with 0.41% and Richard Pzena (Trades, Portfolio) with 0.36%.
He reduced his stake in Walmart Stores Inc. (WMT) by 6.96% with an impact of -0.27% on the portfolio. The current stake is 2.86% of his total assets and 1.75% of the company’s outstanding shares.
GuruFocus gives Walmart Stores a profitability and growth rating of 7 out of 10 with strong returns of ROE 19.07% and ROA 7.43% that are outperforming 88% of the companies in the Global Discount Stores industry. Financial strength has a rating of 4 out of 10 with a positive cash-to-debt of 0.13 that is below the industry median of 0.49.
Its operations comprise three reportable business segments: Walmart U.S., Walmart International and Sam's Club. It added $2.7 billion in sales and comp sales of 1.5%, and total revenues had an increase of 2.8%.
After Buffett the company’s second-largest shareholder among the gurus is Dodge & Cox with 0.96% of outstanding shares, then James Barrow (Trades, Portfolio) with 0.52% and Bill Gates (Trades, Portfolio) with 0.36%.
He reduced his stake in Media General Inc. (MEG) by 25.29% with an impact of -0.02% on the portfolio. The current stake is 0.04% of his total assets and 2.71% of the company’s outstanding shares.
GuruFocus gives Media General a profitability and growth rating of 4 out of 10 with negative returns of ROE 1.96% and ROA 0.65% that are underperforming 68% of the companies in the Global Broadcasting - TV industry. Financial strength has a rating of 6 out of 10 with a positive cash-to-debt of 0.02 that is far below the industry median of 1.19.
The company owns or operates 31 network-affiliated broadcast television stations as well as related websites and mobile news applications. During the third quarter total net revenues, excluding political revenues in this off-cycle year, increased 7% year over year. The strong results were driven by 4% growth in core advertising and higher retransmission consent fees.
Mario Gabelli (Trades, Portfolio) is the company's largest shareholder among the gurus with 4.74% of outstanding shares followed by Buffett with 2.71%, John Rogers (Trades, Portfolio) with 2.12% and John Keeley (Trades, Portfolio) with 1.99%.
He reduced his stake in Deere & Co. (DE) by 1.49% with an impact of -0.02% on the portfolio. The current stake is 0.99% of his total assets and 5.38% of the company’s outstanding shares.
GuruFocus gives Deere a profitability and growth rating of 7 out of 10 with easy returns of ROE 24.28% and ROA 3.28% that are outperforming 58% of the companies in the Global Farm & Construction Equipment industry. Financial strength has a rating of 4 out of 10 with a positive cash-to-debt of 0.13 that is slightly below the industry median of 0.40.
The company is a provider of advanced products and services for agriculture and forestry and a provider of advanced products and services for construction, lawn and turf care, landscaping and irrigation. Third-quarter results reflected the continuing impact of the downturn in the farm economy as well as lower demand for construction equipment in which worldwide net sales and revenues decreased 20%.
The company’s second-largest shareholder among the gurus after Buffett is First Eagle Investment (Trades, Portfolio) with 1.55% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 1.39% and James Barrow (Trades, Portfolio) with 0.85%.
He reduced his stake in Wabco Holdings Inc. (WBC) by 5.77% with an impact of -0.02% on the portfolio. The current stake is 0.29% of his total assets and 6.21% of the company’s outstanding shares.
GuruFocus gives Wabco Holdings a profitability and growth rating of 7 out of 10 with strong returns of ROE 28.48% and ROA 9.69% that are outperforming 84% of the companies in the Global Auto Parts industry. Financial strength has a rating of 8 out of 10 with a positive cash-to-debt of 1.18 that is above the industry median of 0.48.
The company and its subsidiaries develop, manufacture and sell braking, stability, suspension and transmission automation and air management control systems for commercial vehicles. In the third quarter gross margins narrowed from 31.15% to 30.90% compared to the same quarter last year and operating (EBITDA) margins decreased to 16.27% from 16.67%.
After Buffet Alan Fournier (Trades, Portfolio) is the company's second-largest shareholder among the gurus with 2.76% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 2.53% and Pioneer Investments (Trades, Portfolio) with 1.07%.
He reduced his stake in Bank of New York Mellon Corp. (BK) by 2.75% with an impact of -0.02% on the portfolio. The current stake is 0.62% of his total assets and 1.84% of the company’s outstanding shares.
GuruFocus gives Bank of New York Mellon a profitability and growth rating of 7 out of 10 with strong ROE 6.84% that is outperforming 61% of the companies in the Global Asset Management industry. Financial strength has a rating of 5 out of 10 with a positive cash-to-debt of 5.01.
The company has been in business since 1784. It is a global investments company and is in business in two principal segments, Investment Management and Investment Services. Third quarter earnings per common share was 16%-plus on an adjusted basis and total revenue 1%-plus on an adjusted basis.
The company’s largest shareholder among the gurus is Dodge & Cox with 5.26% of outstanding shares followed by Chris Davis (Trades, Portfolio) with 2.34% and First Eagle Investment (Trades, Portfolio) with 2.18%.
