Coasts reported that one of his positions, Oracle, which reported very good quarterly results last week, could be a preview of the quarterly reports of companies that he company hold. He thinks the market is probably over reacting to economy data and thinks the earning growth for stocks in his portfolio will continue.
He said his fund has some financial exposures but it has avoided financial companies that depend on the generosities of the strangers, or in another word, investment banks. He thinks these businesses are not “great businesses” before the financial regulation reform, and their fortune are not going to be improved with the reform.
Coasts commented on his position in Berkshire Hathaway and some insurance companies, thinking it will benefit from the volatility in the stock market.
Coasts stated that he is bullish about “great businesses” that are portable. These businesses can take their operations overseas where they can achieve better growth.
These are the Oak Fund’s top holdings as of March 31, 2010:
No. 1: Berkshire Hathaway Inc. (NYSE:BRK.A), Weightings: 12.12% - 199 Shares
Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in a number of diverse business activities. Berkshire Hathaway Inc. has a market cap of $199.62 billion; its shares were traded at around $121200 with a P/E ratio of 23.2 and P/S ratio of 2.1. Berkshire Hathaway Inc. had an annual average earning growth of 13.2% over the past 10 years.
Oak Value sold 15 shares of Class A of Berkshire Hathaway Inc during 1Q10.
No. 2: Avon Products Inc. (NYSE:AVP), Weightings: 5.28% - 311,951 Shares
Avon Products, Inc. is one of the world's manufacturers and marketers of beauty and related products. Avon Products Inc. has a market cap of $11.9 billion; its shares were traded at around $27.78 with a P/E ratio of 15.3 and P/S ratio of 1.1. The dividend yield of Avon Products Inc. stocks is 3.2%. Avon Products Inc. had an annual average earning growth of 4.2% over the past 10 years. GuruFocus rated Avon Products Inc. the business predictability rank of 2.5-star.
Oak Value sold 25,000 shares of the stock during the quarter during 1Q10.
No. 3: Praxair Inc. (NYSE:PX), Weightings: 5.11% - 123,239 Shares
Praxair is one of the largest industrial gases companies in North and South America. Praxair Inc. has a market cap of $24.28 billion; its shares were traded at around $79.35 with a P/E ratio of 19.1 and P/S ratio of 2.7. The dividend yield of Praxair Inc. stocks is 2.3%. Praxair Inc. had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated Praxair Inc. the business predictability rank of 4-star.
Oak Value bought about 19,000 shares during 1Q10.
No. 4: Coach Inc. (NYSE:COH), Weightings: 5.06% - 256,195 Shares
Coach Inc. is a designer, producer and marketer of high-quality, modern, American classic accessories. Coach Inc. has a market cap of $11.91 billion; its shares were traded at around $39.03 with a P/E ratio of 18.5 and P/S ratio of 3.7. The dividend yield of Coach Inc. stocks is 1.5%. Coach Inc. had an annual average earning growth of 37.2% over the past 10 years.
Oak Value should about 4,500 shares during 1Q10.
No. 5: AFLAC Inc. (NYSE:AFL), Weightings: 4.88% - 179,829 Shares
AFLAC Inc. is a general business holding company and acts as a management company, overseeing the operations of its subsidiaries by providing management services and making capital available. AFLAC Inc. has a market cap of $21.03 billion; its shares were traded at around $44.78 with a P/E ratio of 8.9 and P/S ratio of 1.2. The dividend yield of Aflac Inc. stocks is 2.5%. AFLAC Inc. had an annual average earning growth of 11.5% over the past 10 years. GuruFocus rated AFLAC Inc. the business predictability rank of 3-star.
Oak Value bout 120,000 shares of the stock during 1Q10.
No. 6: Oracle Corp. (NYSE:ORCL), Weightings: 4.75% - 369,767 Shares
Oracle Corporation is one of the world's suppliers of software for information management. Oracle Corp. has a market cap of $112.68 billion; its shares were traded at around $22.45 with a P/E ratio of 14.1 and P/S ratio of 4.2. The dividend yield of Oracle Corp. stocks is 0.9%. Oracle Corp. had an annual average earning growth of 15.6% over the past 10 years. GuruFocus rated Oracle Corp. the business predictability rank of 3-star.
Oak Value bought 29,000 share of this stock during 1Q10.
Oak Value invests in businesses that are “great”, which by their definition are businesses that can ported overseas and draw good portion of their revenue and earning internationally.
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