Louis Moore Bacon invested in a 574,503-share stake in Bunge Ltd. (BG, Financial) in the first quarter.
Bunge was founded in 1818 by Johann Peter Gottlieb Bunge in the Netherlands, as an importing/exporting trading firm. Nearly 200 years later Bunge is a leading agribusiness and food company with integrated operations across the globe.
Bunge conducts its business operations in five principal business areas: agribusiness, sugar and bioenergy, edible oil products, milling products and fertilizer. The company operates its business in North and South America, Europe, Asia, Brazil and Mexico.
Bunge has a market cap of $8.88 billion, a P/E ratio of 13.12, an enterprise value of $13.77 billion, a P/B ratio of 1.47 and a dividend yield of 2.37.
Bacon may have decided to purchase shares in the company for the following reasons:
- Bunge has 198 years of experience in its industry.
- Bunge has a Graham number of $63.89 indicating that the company provides a small margin of safety for investors.
- The company has an Altman score of 3.7 according to GuruFocus. This indicates that the Z score is strong, which means that the company is not in danger of filing for bankruptcy.
- The company has a Piotroski F-Score of 7, indicating a healthy situation.
- The company is in expansion with an operating margin expansion of 2.85 ranking it above 62% of the 1,576 companies in the Global Farm Products industry.
Below is a Peter Lynch Chart for Bunge Ltd.
Bacon spent his early years in Raleigh, North Carolina. He and his family later moved to Virginia where he attended and then later graduated from Episcopal High School in Alexandria, Virginia. Upon graduation from high school Bacon went on to attend Middlebury College in Vermont where he received his B.A. in American literature in 1979.
During the summer after graduating from Middlebury College, Bacon landed a job working on a fishing boat. While working on the sea, Bacon had some serendipitous luck when he met Walter Frank, who offered Bacon the opportunity to work for Walter N. Frank & Co. as a clerk during his summers in college. It was at this time that Bacon started to learn the fundamentals of investing. Bacon later went on to graduate and receive his M.B.A. from Columbia Business School.
In 1989, Bacon founded Moore Capital Management, which continues to run and operate today. Bacon is ranked as the 959th-richest person in the world with a net worth of $1.87 billion according to Forbes.com
Cheers to your investment success.
Start a free seven-day trial of Premium Membership to GuruFocus.
