Lou Simpson (Trades, Portfolio) manages a portfolio composed of 12 stocks with a total value of more than $3 billion. During the fourth quarter, he increased his stakes in the following seven stocks.
The guru increased his stake in Valeant Pharmaceuticals International Inc. (VPX) by 38.18% with an impact of 2.51% on the portfolio.
It is a multinational, specialty pharmaceutical and medical device company that develops, manufactures, and markets a range of branded, generic and branded generic pharmaceuticals, over-the-counter products, and medical devices which are marketed directly or indirectly in over 100 countries. During the third quarter, despite negative foreign exchange impact of $172 million, total revenues had an increase of 36% over the prior year. Same store sales had organic growth of 13%, which is the fifth consecutive quarter of at least 10% organic growth.
GuruFocus gives the stock a profitability and growth rating of 9 out of 10. Financial strength has a rating of 6 out of 10 and cash to debt of 0.05 that is far below industry median of 1.82.
The company’s largest shareholder among the gurus is Ruane Cunniff (Trades, Portfolio) with 10.46%, then Bill Ackman (Trades, Portfolio) with 9.94%, Ruane Cunniff (Trades, Portfolio) with 9.89%, Jeff Ubben (Trades, Portfolio) with 4.37% and John Paulson (Trades, Portfolio) with 2.59%.
Simpson increased his stake in Liberty Global PLCÂ (LBTYK) by 4.32% with an impact of 0.47% on the portfolio.
The company provides video, broadband internet, fixed-line telephony and mobile services across 14 countries.
GuruFocus gives the stock a profitability and growth rating of 4 out of 10, with negative returns of ROE of -10.92% and ROA of -2.03% that are underperforming 78% of the companies in the Global Pay TV industry. Financial strength has a rating of 6 out of 10 and cash to debt of 0.02 that is far below industry median of 0.44.
The company’s largest shareholder among the gurus is Dodge & Cox with 2.54% of shares outstanding, followed by Chris Davis (Trades, Portfolio) with 1.71%, First Eagle Investment (Trades, Portfolio) with 1.41%, Lee Ainslie (Trades, Portfolio) with 1.41%, Warren Buffett (Trades, Portfolio) with 0.85% Wallace Weitz (Trades, Portfolio) with 0.61% and John Griffin (Trades, Portfolio) with 0.59%.
Simpson increased his stake in Berkshire Hathaway Inc. (BRK.B) by 2.78% with an impact of 0.33 % on the portfolio.
The company is a holding company owning subsidiaries engaged in a number of diverse business activities, including insurance and reinsurance, freight rail transportation, utilities and energy, finance, manufacturing, service and retailing. During the third quarter, Berkshire Hathaway saw their operating earnings decline 3.7% compared to the same quarter last year, and due to declining insurance profits and a $1.05 billion investment loss, it reported a 77% drop in third-quarter earnings.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with easy returns of ROE of 9.38% and ROA of 4.28% that are overperforming 54% of the companies in the Global Insurance - Diversified industry. Financial strength has a rating of 4 out of 10 and cash to debt of 0.78.
Bill Gates (Trades, Portfolio) is the largest shareholder among the gurus with 3.03% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.23%, Ruane Cunniff (Trades, Portfolio) with 0.2%, David Rolfe (Trades, Portfolio) with 0.19%, Tom Russo (Trades, Portfolio) with 0.11% and Chris Davis (Trades, Portfolio) with 0.06%.
Simpson increased his stake in Wells Fargo & Co. (WFC) by 2.36% with an impact of 0.27% on the portfolio.
The company provides retail, commercial and corporate banking services through banking stores and offices, the internet and other distribution channels to individuals, businesses and institutions. Fourth quarter diluted EPS grew 1%, revenue grew 1% and pre-tax pre-provision profit had a 4% growth year over year.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10, with positive returns of ROE of 11.38% and ROA of 1.33% that are overperforming 67% of the companies in the industry. Financial strength has a rating of 6 out of 10 and cash to debt of 0.06 that is below industry median of 2.28.
The company’s largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 9.21% of outstanding shares, followed by Dodge & Cox with 1.37%, James Barrow (Trades, Portfolio) with 0.78%, Chris Davis (Trades, Portfolio) with 0.5%, Ken Fisher (Trades, Portfolio) with 0.37%, PRIMECAP Management (Trades, Portfolio) with 0.3% and Tom Russo (Trades, Portfolio) with 0.29%.
Simpson also upped his holding in U.S. Bancorp (USB) by 6.59% with an impact of 0.18% on the portfolio.
It is a multi-state financial services holding company headquartered in Minneapolis, Minnesota. U.S. Bancorp provides financial services, including lending and depository services, cash management, foreign exchange and trust and investment management services. The company returned 72% of full year earnings to shareholders, and diluted earnings per common share of $3.16 were 2.6% higher than 2014.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with positive returns of ROE of 12.55% and ROA of 1.42% that are over performing 73% of the companies in the industry. Financial strength has a rating of 6 out of 10 and cash to debt of 0.19 that is below industry median of 2.28.
Warren Buffett (Trades, Portfolio) is the largest shareholder of the company among the gurus with 4.86% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.65%, Donald Yacktman (Trades, Portfolio) with 0.4%, Mairs and Power (Trades, Portfolio) with 0.36%, Pioneer Investments (Trades, Portfolio) with 0.24% and Yacktman Fund (Trades, Portfolio) with 0.24%.
The guru increased his stake in Ametek Inc. (AME) by 1.01% with an impact of 0.15% on the portfolio.
The company is a manufacturer of electronic instruments and electromechanical devices with operations in North America, Europe, Asia and South America. Fourth quarter sales had a 4% decrease year over year, and operating income was down 1%. Operating margins were up 50 basis points to 23.2%, and diluted earnings per share of 63 cents were unchanged from the fourth quarter 2014 adjusted levels.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10, with strong returns of ROE of 17.88% and ROA of 9.06% that are overperforming 84% of the companies in the Global Diversified Industrials industry. Financial strength has a rating of 6 out of 10 and cash to debt of 0.20 that is below industry median of 0.85.
Other notable shareholders of the company are Columbia Wanger (Trades, Portfolio) with 1.66% of outstanding shares, Mario Gabelli (Trades, Portfolio) with 1.09%, Meridian Funds (Trades, Portfolio) with 0.47%, Jeremy Grantham (Trades, Portfolio) with 0.1% and John Hussman (Trades, Portfolio) with 0.04%.
The guru increased his stake in Charles Schwab Corp. (SCHW) by 0.75% with an impact of 0.1% on the portfolio.
The company provides financial services to individuals and institutional clients. Third quarter net income grew 7% from the second quarter. Net revenue grew 3% and diluted earnings per shares grew 17% compared to the same quarter of a year before.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with strong ROE of 13.40% that is overperforming and weak ROA of 1.09% that is underperforming other companies in the Global Capital Markets industry.
Dodge & Cox is the largest shareholder of the company among the gurus with 7.79% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 4.23%, Frank Sands (Trades, Portfolio) with 2.98%, Chris Davis (Trades, Portfolio) with 1.12%, Steve Mandel (Trades, Portfolio) with 1.02%, Lou Simpson (Trades, Portfolio) with 0.95% and Jeremy Grantham (Trades, Portfolio) with 0.79%.
