Glenn Greenberg Establishes 3 Positions in 4th Quarter

Top buy is Google parent Alphabet Inc

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Feb 20, 2018
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Glenn Greenberg, manager of Brave Warrior Advisors, disclosed Feb. 14 he initiated three positions during fourth-quarter 2017: Alphabet Inc. (GOOGL, Financial), IQVIA Holdings Inc. (IQV, Financial) and Express Scripts Holding Co. (ESRX, Financial).

Alphabet

Greenberg invested in 241,309 Class A shares of Alphabet, the parent company of Google. The stock averaged $1,032.42 during the quarter, and the position represents 10.84% of the guru’s portfolio.

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Alphabet’s profitability ranks 8 out of 10 primarily due to strong profit margins and a decent business predictability rank of three stars. The company’s operating margins outperform over 85% of global competitors despite contracting approximately 3.8% per year over the past five years.

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Although the company reported strong revenue growth, Alphabet reported lower operating income due to higher traffic acquisition costs. Chief Financial Officer Ruth Porat mentioned the switch to mobile search primarily drove operating costs, which increased 33% year over year.

IQVIA Holdings

Greenberg invested in 482,866 shares of IQVIA Holdings for an average price of $101.80 per share. With this transaction, the guru increased his portfolio 2.02%.

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IQVIA Holdings provides information and technology-enabled health care services to various pharmaceutical companies. The company’s profitability ranks 6 out of 10 as the company’s margins and returns outperform just 57% of global competitors. Additionally, the company’s operating margin is near a 10-year low of 7.38%.

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Express Scripts Holding

Greenberg invested in 7,080 shares of Express Scripts Holding for an average price of $63.93 per share. With this transaction, the guru increased his portfolio 0.02%.

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Express Scripts has a profitability rank of 9, driven primarily by expanding operating margins, a Piotroski F-score of a perfect 9 and a GuruFocus business predictability rank of four stars.

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Express Scripts is still on Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio)’s list of good companies as of Feb. 20. The company has gained 1.89% since Jan. 1, the day the Buffett-Munger model portfolio added 147 shares.

Disclosure: No positions.