The Stock market had a terrific run since the middle of the year. Dow has been making new highs, and S&P500 is also not far from its all time high in year 2000. Starting November, we have reported the most recent stock purchases and sells of Gurus during the third quarter. We would like to wrap up what Gurus have done here.
Guru Investment Trend – Which sectors are Gurus moving money to and from?
Are Gurus trying to stay defensive? Personal & Household Goods industry is where value Gurus bought most of their stocks. Value Gurus bought 22 new stocks in this industry, and sold only 8. Nike Inc. (NKE, Financial) is the most bought stock; it is new position in the portfolios of Glenn Greenberg, Bill Miller, and Dodge & Cox. Warren Buffett also added to his holdings in NKE during the third quarter.
Oil stocks have not fared well this year. Do Gurus see a further decline in oil? Oil stocks are sold the most by value Gurus, which include Oil Equipment Services & Distribution companies such as Schlumberger Ltd. (SLB) and Oil producer Exxon Mobil Corp (XOM). As a group, value Gurus bought only 10 new stocks in oil, and sold out 36.
Insurance is the second most sold-out industry. Insurance businesses had a great year in 2006. Do Gurus see deteriorations in the business? Insurance business is highly cyclic, but is it time for a downturn in the market? Value Gurus sold out 16 stocks in insurance sold out 16 Insurance stocks, and bought only 4.
Consensus Picks of Gurus
As noted above, Nike, Inc. (NKE) is the most popular picks of Gurus. Glenn Greenberg, Bill Miller, and Dodge & Cox initiated new positions in NKE, and Warren Buffett and Charles de Vaulx added to their positions, too. During the third quarter, NKE went to a low of $77, and Gurus pick up positions. NKE is traded at around $97 today.
Lowe’s Comp. (LOW, Financial) is Gurus’ second most favorite picks. Ronald Muhlenkamp and Robert Olstein initiated positions in LOW. Warren Buffett, Ruane Cunniff, and David Dreman added to their positions. David Dreman noted in his Forbes column that LOW has growth rate of 12-15%, and its P/E sits at 15. LOW is up about 10% since Gurus bought. Still a buy?
Among others, Symantec Corp. (SYMC), USG Corp. (USG), International Speedway Corp. (ISCA) etc. are also the popular choices of Gurus. The details can be found at http://www.gurufocus.com/most_active.php?days=90.
Broadest Owned Stocks
Pfizer Inc. (PFE, Financial) and AIG (AIG) are the broadest owned stocks. Pfizer Inc. is owned by 14 Gurus. Gurus shrug off the concern that what Pfizer will do when the hugely popular cholesterol drug Lipitor loses its patent protection around 2010. With sales of almost $13 billion last year, Lipitor is not only Pfizer's primary revenue driver; it is also the world's biggest-selling prescription drug. Pfizer investors had been banking on a new drug containing Lipitor called torcetrapib as a means for the company to hang on to its lucrative Lipitor franchise. The development of torcetrapib was stopped recently.
The top 25 broadest owned stocks from this time last year has outperformed S&P500 by more than 3%. For details click this: http://www.gurufocus.com/model_portfolio.php?mp=largecap
Most Weighted Stocks
Wal-Mart (WMT, Financial) holds the position of the most weighted stocks of Guru’s portfolios. It is responsible for about 50% of Joel Greenblatt’s common stock portfolios. The price of Wal-Mart is still more than 30% below its all time high of $68 in 2000, although its earnings have doubled since. Joel Greenblatt is betting heavily on it.
Comcast (CMCSA, CMCSK) sits at the position of the second most weighted stock. Glenn Greenberg, who invests more than $3 billion in only 8 stocks, has more than 37% of holdings in Comcast.
The portfolio of 25 most weighted stocks has outperformed the S&P500 by more than 10%. For the details of the portfolio, click here: http://www.gurufocus.com/model_portfolio.php?mp=hr_largecap
Guru Investment Trend – Which sectors are Gurus moving money to and from?
Are Gurus trying to stay defensive? Personal & Household Goods industry is where value Gurus bought most of their stocks. Value Gurus bought 22 new stocks in this industry, and sold only 8. Nike Inc. (NKE, Financial) is the most bought stock; it is new position in the portfolios of Glenn Greenberg, Bill Miller, and Dodge & Cox. Warren Buffett also added to his holdings in NKE during the third quarter.
Oil stocks have not fared well this year. Do Gurus see a further decline in oil? Oil stocks are sold the most by value Gurus, which include Oil Equipment Services & Distribution companies such as Schlumberger Ltd. (SLB) and Oil producer Exxon Mobil Corp (XOM). As a group, value Gurus bought only 10 new stocks in oil, and sold out 36.
Insurance is the second most sold-out industry. Insurance businesses had a great year in 2006. Do Gurus see deteriorations in the business? Insurance business is highly cyclic, but is it time for a downturn in the market? Value Gurus sold out 16 stocks in insurance sold out 16 Insurance stocks, and bought only 4.
Consensus Picks of Gurus
As noted above, Nike, Inc. (NKE) is the most popular picks of Gurus. Glenn Greenberg, Bill Miller, and Dodge & Cox initiated new positions in NKE, and Warren Buffett and Charles de Vaulx added to their positions, too. During the third quarter, NKE went to a low of $77, and Gurus pick up positions. NKE is traded at around $97 today.
Lowe’s Comp. (LOW, Financial) is Gurus’ second most favorite picks. Ronald Muhlenkamp and Robert Olstein initiated positions in LOW. Warren Buffett, Ruane Cunniff, and David Dreman added to their positions. David Dreman noted in his Forbes column that LOW has growth rate of 12-15%, and its P/E sits at 15. LOW is up about 10% since Gurus bought. Still a buy?
Among others, Symantec Corp. (SYMC), USG Corp. (USG), International Speedway Corp. (ISCA) etc. are also the popular choices of Gurus. The details can be found at http://www.gurufocus.com/most_active.php?days=90.
Broadest Owned Stocks
Pfizer Inc. (PFE, Financial) and AIG (AIG) are the broadest owned stocks. Pfizer Inc. is owned by 14 Gurus. Gurus shrug off the concern that what Pfizer will do when the hugely popular cholesterol drug Lipitor loses its patent protection around 2010. With sales of almost $13 billion last year, Lipitor is not only Pfizer's primary revenue driver; it is also the world's biggest-selling prescription drug. Pfizer investors had been banking on a new drug containing Lipitor called torcetrapib as a means for the company to hang on to its lucrative Lipitor franchise. The development of torcetrapib was stopped recently.
The top 25 broadest owned stocks from this time last year has outperformed S&P500 by more than 3%. For details click this: http://www.gurufocus.com/model_portfolio.php?mp=largecap
Most Weighted Stocks
Wal-Mart (WMT, Financial) holds the position of the most weighted stocks of Guru’s portfolios. It is responsible for about 50% of Joel Greenblatt’s common stock portfolios. The price of Wal-Mart is still more than 30% below its all time high of $68 in 2000, although its earnings have doubled since. Joel Greenblatt is betting heavily on it.
Comcast (CMCSA, CMCSK) sits at the position of the second most weighted stock. Glenn Greenberg, who invests more than $3 billion in only 8 stocks, has more than 37% of holdings in Comcast.
The portfolio of 25 most weighted stocks has outperformed the S&P500 by more than 10%. For the details of the portfolio, click here: http://www.gurufocus.com/model_portfolio.php?mp=hr_largecap
