On March 19, Bloomberg reported that Warren Buffett, Chairman and CEO of Berkshire Hathaway, is seeking to spend $5 billion to $20 billion on an acquisition. He prefers “simple” businesses with pretax profit exceeding $75 million, “consistent earnings power,” “good” returns on equity and little or no debt. Bloomberg went on and stated that there are 50 U.S. companies with that much market value and profit, a return on equity exceeding 10 percent and a debt-to- equity ratio less than 50 percent, according to Bloomberg’s own data.
Food, tobacco, and liquor companies are somewhat recession resistant. Besides, Warren Buffett likes consumer goods and services companies as this is an area in which some great consumer monopoly can be established. His famous and very profitable ownership in Coca-Cola (KO) is a classic case study of his successful investment career. He also owns some food stock Kraft (KFT) shares. I am not sure if he will go as far as owning a tobacco or a liquor stock, even though Altria (MO) has been among the most appreciated stocks since the end of WWII. He will not mind own retailers who sell tobacco along with many other items, but owning a tobacco company outright is beyond his code. As I commented earlier, regardless whether Berkshire Hathaway will make a move on the stock, each company has to stand on its own investment merits.
GuruFocus dug into the list of companies and present information on company’s business, ownership of the Investment Gurus, and trade activity of insiders. The companies are grouped according to industries they operate in.
This part we treat five oil and gas companies: Archer Daniels Midland Company (ADM, Financial), Bunge Ltd. (BG, Financial), Sysco Corp (SYY, Financial), Reynolds American Inc (RAI, Financial), and BrownForman Corp. (BF-A).
Archer Daniels Midland Company (ADM)
Archer Daniels Midland Company is a world leader in agricultural processing and fermentation technology. ADM is one of the world's largest processors of soybeans corn wheat and cocoa. ADM is also a leader in the production of soybean oil and meal ethanol corn sweeteners and flour. The Company works with farmers across the world to turn these crops into soymeal and oil corn, sweeteners, flour, cocoa and chocolate, ethanol and biodiesel, as well as a wide portfolio of other value-added food ingredients animal nutrition and industrial products.
Archer Daniels Midland Company has a market cap of $18.58 billion; its shares were traded at around $28.94 with a P/E ratio of 7.3 and P/S ratio of 0.3. The dividend yield of Archer Daniels Midland Company stocks is 1.9%. Archer Daniels Midland Company had an annual average earning growth of 16.8% over the past 10 years. GuruFocus rated Archer Daniels Midland Company the business predictability rank of 3.5-star.
Archer Daniels Midland Company is owned by 1 Gurus: Jean-Marie Eveillard owns 52,500 shares as of 12/31/2008, which accounts for 0.02% of the $7.54 billion portfolio of Arnhold & S. Bleichroeder Advisers, LLC.
1 Guru Sold Out ADM: John Hussman sold out his holdings in the quarter that ended on 12/31/2008.
Recent Trades of Archer Daniels Midland Company by Directors and Officers: Sell: Vice President Mark N Zenuk sold 9,687 shares of ADM stock on 03/10/2009 at the average price of $27.9; the price of the stock has increased by 3.73% since. Sell: Vice President Michael Lusk sold 500 shares of ADM stock on 02/27/2009 at the average price of $27.48; the price of the stock has increased by 5.31% since. Sell: Vice President Mark Bemis sold 19,746 shares of ADM stock on 02/24/2009 at the average price of $28.28; the price of the stock has increased by 2.33% since.
Bunge Ltd. (BG)
Bunge Ltd. is an integrated global agribusiness and food company spanning the farm-to-consumer food chain. Bunge processes produces moves distributes and markets food on five continents.
Bunge Ltd. has a market cap of $7.22 billion; its shares were traded at around $59.33 with a P/E ratio of 9.4 and P/S ratio of 0.1. The dividend yield of Bunge Ltd. stocks is 1.3%. Bunge Ltd. had an annual average earning growth of 2.7% over the past 5 years.
Bunge Ltd. is owned by 2 Gurus. 1 Guru Initiated Positions in BG: John Hussman bought 105,000 shares in the quarter that ended on 12/31/2008, which is 0.16% of the $3.37 billion portfolio of Hussman Economtrics Advisors, Inc.. 1 Guru Kept Positions in BG Unchanged or Slightly Adjusted: Steve Mandel owns 550,000 shares as of 12/31/2008, which accounts for 0.46% of the $6.13 billion portfolio of Lone Pine Capital.
1 Guru Sold Out BG: Richard Aster Jr sold out his holdings in the quarter that ended on 12/31/2008.
Sysco Corp (SYY)
Sysco Corporation is the largest North American distributor of food and food related products to the foodservice or `food-prepared-away-from-home` industry. The company provides its products and services to restaurants healthcare and educational facilities lodging establishments and other foodservice customers.
Sysco Corp. has a market cap of $14.08 billion; its shares were traded at around $23.89 with a P/E ratio of 13.2 and P/S ratio of 0.4. The dividend yield of Sysco Corp. stocks is 4%. Sysco Corp. had an annual average earning growth of 13.3% over the past 10 years. GuruFocus rated Sysco Corp. the business predictability rank of 4-star.
Sysco Corp. is owned by 5 Gurus. 2 Gurus Initiated Positions in SYY: Robert Olstein bought 194,100 shares in the quarter that ended on 12/31/2008, which is 0.94% of the $474 million portfolio of Olstein Financial Alert Fund. Mark Hillman bought 31,176 shares in the quarter that ended on 12/31/2008, which is 0.23% of the $308 million portfolio of Hillman Capital Management.
2 Gurus Kept Positions in SYY Unchanged or Slightly Adjusted: Tom Gayner owns 776,694 shares as of 12/31/2008, which accounts for 1.58% of the $1.13 billion portfolio of Markel Gayner Asset Management Corp. Dodge & Cox owns 24,418 shares as of 12/31/2008, which accounts for less than 0.01% of the $65.51 billion portfolio of Dodge & Cox.
1 Guru Reduced Positions in SYY: Richard Aster Jr owns 16,700 shares as of 12/31/2008, a decrease of 23.74% of from the previous quarter. This position accounts for 0.02% of the $1.94 billion portfolio of Meridian Fund. 1 Guru Sold Out SYY: Kenneth Fisher sold out his holdings in the quarter that ended on 12/31/2008.
Recent Trades of Sysco Corp. by Directors and Officers: Sell: EVP - Foodservice Operations Stephen F Smith sold 11,476 shares of SYY stock on 03/16/2009 at the average price of $22.21; the price of the stock has increased by 7.56% since.
Reynolds American Inc (RAI)
Reynolds American Inc. is the parent company of R.J. Reynolds Tobacco Company, Santa Fe Natural Tobacco Company Inc., Lane Limited, and R.J. Reynolds Global Products Inc. R.J. Reynolds Tobacco Company is the second- largest U.S. tobacco company manufactures about one of every three cigarettes sold in the United States including five of the nation's 10 best-selling brands: Camel, Winston, KOOL, Salem, and Doral. Santa Fe Natural Tobacco Company Inc. manufactures Natural American Spirit cigarettes.
Reynolds American Inc. has a market cap of $10.99 billion; its shares were traded at around $37.72 with a P/E ratio of 7.9 and P/S ratio of 1.2. The dividend yield of Reynolds American Inc. stocks is 9.1%. Reynolds American Inc. had an annual average earning growth of 20.6% over the past 5 years.
Reynolds American Inc. is owned by 2 Gurus. 2 Gurus Reduced Positions in RAI: David Winters owns 1,072,732 shares as of 12/31/2008, a decrease of 26.53% of from the previous quarter. This position accounts for 8.98% of the $481 million portfolio of Wintergreen Advisors. Richard Aster Jr owns 9,605 shares as of 12/31/2008, a decrease of 29.92% of from the previous quarter. This position accounts for 0.02% of the $1.94 billion portfolio of Meridian Fund. 1 Guru Sold Out RAI: Joel Greenblatt sold out his holdings in the quarter that ended on 12/31/2008.
Recent Trades of Reynolds American Inc. by CEO: Buy: Chairman, Pres. & CEO of RJRTC Daniel M Delen bought 9,000 shares of RAI stock on 02/13/2009 at the average price of $38.04; the price of the stock has decreased by 0.84% since.
Recent Trades of Reynolds American Inc. by CFO: Buy: EVP & CFO Thomas R Adams bought 3,100 shares of RAI stock on 02/27/2009 at the average price of $33.63; the price of the stock has increased by 12.16% since.
Recent Trades of Reynolds American Inc. by Directors and Officers: Buy: EVP Human Resources Lisa J Caldwell bought 2,700 shares of RAI stock on 03/02/2009 at the average price of $33.58; the price of the stock has increased by 12.33% since. Buy: RAI Group EVP Jeffery S Gentry bought 1,250 shares of RAI stock on 02/23/2009 at the average price of $36.83; the price of the stock has increased by 2.42% since. Buy: Director Daniel M Delen bought 9,000 shares of RAI stock on 02/13/2009 at the average price of $38.04; the price of the stock has decreased by 0.84% since.
BrownForman Corp. (BF-A)
Brown-Forman is best known for its Jack Daniel's (sour mash whiskey) and Southern Comfort (bourbon whiskey) liquors. But the Kentucky-based company also produces fine china (Dansk Lenox Gorham), jewelry, personal leather accessories (Hartmann), wines (Bel Arbors Bolla Cella), and other spirits (Canadian Mist, Pepe Lopez tequila). The Company is expanding into Asia and Latin America where the taste for its products appears to be growing.
BrownForman Corp. has a market cap of $6.02 billion; its shares were traded at around $39.92 with a P/E ratio of 13.1 and P/S ratio of 1.9. The dividend yield of BrownForman Corp. stocks is 2.9%. BrownForman Corp. had an annual average earning growth of 8.4% over the past 10 years. GuruFocus rated BrownForman Corp. the business predictability rank of 3.5-star.
1 Guru Kept Positions in BF-A Unchanged or Slightly Adjusted: Tom Gayner owns 283,860 shares as of 12/31/2008, which accounts for 1.26% of the $1.13 billion portfolio of Markel Gayner Asset Management Corp.
Food, tobacco, and liquor companies are somewhat recession resistant. Besides, Warren Buffett likes consumer goods and services companies as this is an area in which some great consumer monopoly can be established. His famous and very profitable ownership in Coca-Cola (KO) is a classic case study of his successful investment career. He also owns some food stock Kraft (KFT) shares. I am not sure if he will go as far as owning a tobacco or a liquor stock, even though Altria (MO) has been among the most appreciated stocks since the end of WWII. He will not mind own retailers who sell tobacco along with many other items, but owning a tobacco company outright is beyond his code. As I commented earlier, regardless whether Berkshire Hathaway will make a move on the stock, each company has to stand on its own investment merits.
GuruFocus dug into the list of companies and present information on company’s business, ownership of the Investment Gurus, and trade activity of insiders. The companies are grouped according to industries they operate in.
This part we treat five oil and gas companies: Archer Daniels Midland Company (ADM, Financial), Bunge Ltd. (BG, Financial), Sysco Corp (SYY, Financial), Reynolds American Inc (RAI, Financial), and BrownForman Corp. (BF-A).
| Symbol | Company | P/E | P/S | P/B | Yield (%) | ROA (%) | ROE (%) | Operating Margin (%) | Debt to Equity (%) |
| ADM | Archer Daniels Midland Company | 7.30 | 0.30 | 1.40 | 1.90 | 7.10 | 18.74 | 3.22 | 0.57 |
| BG | Bunge Ltd. | 9.30 | 0.10 | 1.20 | 1.30 | 3.84 | 13.34 | 1.76 | 0.52 |
| SYY | Sysco Corp. | 13.10 | 0.40 | 4.30 | 4 | 10.86 | 32.31 | 2.87 | 0.58 |
| RAI | Reynolds American Inc. | 8 | 1.20 | 1.80 | 9 | 7.59 | 19.19 | 15.90 | 0.72 |
| BF-A | BrownForman Corp. | 13.40 | 1.90 | 3.40 | 2.80 | 13.38 | 26.44 | 14.30 | 0.24 |
Archer Daniels Midland Company (ADM)
Archer Daniels Midland Company is a world leader in agricultural processing and fermentation technology. ADM is one of the world's largest processors of soybeans corn wheat and cocoa. ADM is also a leader in the production of soybean oil and meal ethanol corn sweeteners and flour. The Company works with farmers across the world to turn these crops into soymeal and oil corn, sweeteners, flour, cocoa and chocolate, ethanol and biodiesel, as well as a wide portfolio of other value-added food ingredients animal nutrition and industrial products.
Archer Daniels Midland Company has a market cap of $18.58 billion; its shares were traded at around $28.94 with a P/E ratio of 7.3 and P/S ratio of 0.3. The dividend yield of Archer Daniels Midland Company stocks is 1.9%. Archer Daniels Midland Company had an annual average earning growth of 16.8% over the past 10 years. GuruFocus rated Archer Daniels Midland Company the business predictability rank of 3.5-star.
Archer Daniels Midland Company is owned by 1 Gurus: Jean-Marie Eveillard owns 52,500 shares as of 12/31/2008, which accounts for 0.02% of the $7.54 billion portfolio of Arnhold & S. Bleichroeder Advisers, LLC.
1 Guru Sold Out ADM: John Hussman sold out his holdings in the quarter that ended on 12/31/2008.
Recent Trades of Archer Daniels Midland Company by Directors and Officers: Sell: Vice President Mark N Zenuk sold 9,687 shares of ADM stock on 03/10/2009 at the average price of $27.9; the price of the stock has increased by 3.73% since. Sell: Vice President Michael Lusk sold 500 shares of ADM stock on 02/27/2009 at the average price of $27.48; the price of the stock has increased by 5.31% since. Sell: Vice President Mark Bemis sold 19,746 shares of ADM stock on 02/24/2009 at the average price of $28.28; the price of the stock has increased by 2.33% since.
Bunge Ltd. (BG)
Bunge Ltd. is an integrated global agribusiness and food company spanning the farm-to-consumer food chain. Bunge processes produces moves distributes and markets food on five continents.
Bunge Ltd. has a market cap of $7.22 billion; its shares were traded at around $59.33 with a P/E ratio of 9.4 and P/S ratio of 0.1. The dividend yield of Bunge Ltd. stocks is 1.3%. Bunge Ltd. had an annual average earning growth of 2.7% over the past 5 years.
Bunge Ltd. is owned by 2 Gurus. 1 Guru Initiated Positions in BG: John Hussman bought 105,000 shares in the quarter that ended on 12/31/2008, which is 0.16% of the $3.37 billion portfolio of Hussman Economtrics Advisors, Inc.. 1 Guru Kept Positions in BG Unchanged or Slightly Adjusted: Steve Mandel owns 550,000 shares as of 12/31/2008, which accounts for 0.46% of the $6.13 billion portfolio of Lone Pine Capital.
1 Guru Sold Out BG: Richard Aster Jr sold out his holdings in the quarter that ended on 12/31/2008.
Sysco Corp (SYY)
Sysco Corporation is the largest North American distributor of food and food related products to the foodservice or `food-prepared-away-from-home` industry. The company provides its products and services to restaurants healthcare and educational facilities lodging establishments and other foodservice customers.
Sysco Corp. has a market cap of $14.08 billion; its shares were traded at around $23.89 with a P/E ratio of 13.2 and P/S ratio of 0.4. The dividend yield of Sysco Corp. stocks is 4%. Sysco Corp. had an annual average earning growth of 13.3% over the past 10 years. GuruFocus rated Sysco Corp. the business predictability rank of 4-star.
Sysco Corp. is owned by 5 Gurus. 2 Gurus Initiated Positions in SYY: Robert Olstein bought 194,100 shares in the quarter that ended on 12/31/2008, which is 0.94% of the $474 million portfolio of Olstein Financial Alert Fund. Mark Hillman bought 31,176 shares in the quarter that ended on 12/31/2008, which is 0.23% of the $308 million portfolio of Hillman Capital Management.
2 Gurus Kept Positions in SYY Unchanged or Slightly Adjusted: Tom Gayner owns 776,694 shares as of 12/31/2008, which accounts for 1.58% of the $1.13 billion portfolio of Markel Gayner Asset Management Corp. Dodge & Cox owns 24,418 shares as of 12/31/2008, which accounts for less than 0.01% of the $65.51 billion portfolio of Dodge & Cox.
1 Guru Reduced Positions in SYY: Richard Aster Jr owns 16,700 shares as of 12/31/2008, a decrease of 23.74% of from the previous quarter. This position accounts for 0.02% of the $1.94 billion portfolio of Meridian Fund. 1 Guru Sold Out SYY: Kenneth Fisher sold out his holdings in the quarter that ended on 12/31/2008.
Recent Trades of Sysco Corp. by Directors and Officers: Sell: EVP - Foodservice Operations Stephen F Smith sold 11,476 shares of SYY stock on 03/16/2009 at the average price of $22.21; the price of the stock has increased by 7.56% since.
Reynolds American Inc (RAI)
Reynolds American Inc. is the parent company of R.J. Reynolds Tobacco Company, Santa Fe Natural Tobacco Company Inc., Lane Limited, and R.J. Reynolds Global Products Inc. R.J. Reynolds Tobacco Company is the second- largest U.S. tobacco company manufactures about one of every three cigarettes sold in the United States including five of the nation's 10 best-selling brands: Camel, Winston, KOOL, Salem, and Doral. Santa Fe Natural Tobacco Company Inc. manufactures Natural American Spirit cigarettes.
Reynolds American Inc. has a market cap of $10.99 billion; its shares were traded at around $37.72 with a P/E ratio of 7.9 and P/S ratio of 1.2. The dividend yield of Reynolds American Inc. stocks is 9.1%. Reynolds American Inc. had an annual average earning growth of 20.6% over the past 5 years.
Reynolds American Inc. is owned by 2 Gurus. 2 Gurus Reduced Positions in RAI: David Winters owns 1,072,732 shares as of 12/31/2008, a decrease of 26.53% of from the previous quarter. This position accounts for 8.98% of the $481 million portfolio of Wintergreen Advisors. Richard Aster Jr owns 9,605 shares as of 12/31/2008, a decrease of 29.92% of from the previous quarter. This position accounts for 0.02% of the $1.94 billion portfolio of Meridian Fund. 1 Guru Sold Out RAI: Joel Greenblatt sold out his holdings in the quarter that ended on 12/31/2008.
Recent Trades of Reynolds American Inc. by CEO: Buy: Chairman, Pres. & CEO of RJRTC Daniel M Delen bought 9,000 shares of RAI stock on 02/13/2009 at the average price of $38.04; the price of the stock has decreased by 0.84% since.
Recent Trades of Reynolds American Inc. by CFO: Buy: EVP & CFO Thomas R Adams bought 3,100 shares of RAI stock on 02/27/2009 at the average price of $33.63; the price of the stock has increased by 12.16% since.
Recent Trades of Reynolds American Inc. by Directors and Officers: Buy: EVP Human Resources Lisa J Caldwell bought 2,700 shares of RAI stock on 03/02/2009 at the average price of $33.58; the price of the stock has increased by 12.33% since. Buy: RAI Group EVP Jeffery S Gentry bought 1,250 shares of RAI stock on 02/23/2009 at the average price of $36.83; the price of the stock has increased by 2.42% since. Buy: Director Daniel M Delen bought 9,000 shares of RAI stock on 02/13/2009 at the average price of $38.04; the price of the stock has decreased by 0.84% since.
BrownForman Corp. (BF-A)
Brown-Forman is best known for its Jack Daniel's (sour mash whiskey) and Southern Comfort (bourbon whiskey) liquors. But the Kentucky-based company also produces fine china (Dansk Lenox Gorham), jewelry, personal leather accessories (Hartmann), wines (Bel Arbors Bolla Cella), and other spirits (Canadian Mist, Pepe Lopez tequila). The Company is expanding into Asia and Latin America where the taste for its products appears to be growing.
BrownForman Corp. has a market cap of $6.02 billion; its shares were traded at around $39.92 with a P/E ratio of 13.1 and P/S ratio of 1.9. The dividend yield of BrownForman Corp. stocks is 2.9%. BrownForman Corp. had an annual average earning growth of 8.4% over the past 10 years. GuruFocus rated BrownForman Corp. the business predictability rank of 3.5-star.
1 Guru Kept Positions in BF-A Unchanged or Slightly Adjusted: Tom Gayner owns 283,860 shares as of 12/31/2008, which accounts for 1.26% of the $1.13 billion portfolio of Markel Gayner Asset Management Corp.
