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Stocks Ideas that Buffett and Soros Share (3): Nalco Holding Company, Comcast Corp., IngersollRand Company, CarMax Inc., Lowe's Companies, General Electric Company

Stocks Ideas that Buffett and Soros Share (3): NLC, CMCSK, IR, KMX, LOW, GE

July 25, 2010 | About:
Warren Buffett and George Soros are legendary figures in the investment world in our times. In 2009, London-based Nicholas Vardy appeared in Moneyshow.com compares the styles and results of two investors and tells who did better. The interview was taken in 2009, but the two Investment Gurus have not changed their investment style since then.

Vardy put it simple: “Warren Buffett is an investor, Soros is a speculator.”



According to Vardy, Soros has relinquished the trading authority to the organization that he built and retreated once again to what is apparent a very busy retirement. According to GuruFocus, his team in Soros Fund Management LLC kept 821 stocks in their portfolio and 280 of them are new one for the quarter of 1Q10, the last time data is available. Diversified? Yes. Fast churning? Indeed.

Buffett, on the other hand, runs a very concentrated portfolio that hardly churns. He and his investment team believe in buy-and-hold. Between Buffett and his lieutenants and their $50+ billion in domestic equity portfolio, there are 36 stocks and none of them were new.

The investment styles of the two are night and day different. Yes, if you are serious and conduct the careful match work, you can find they share 25 stock ideas. Is it possible that all the PhD’s Soros hires to manage his money steal a few ideas from Buffett? You may ask.

Of course that is not true, Soros is far too original to piggyback on Buffett’s portfolio, but it does not hurt if we the less immortals to know and learn what stocks they hold in common.

Here are the second part of list for these stocks:

Symbol

Warren Buffett

George Soros

ShareValue ($1000s)ChangeShareValue ($1000s)Change
NLC9,000,000218,9700%8,800214-30.16%
CMCSK12,000,000215,6400%66,1001,188237.24%
IR5,636,600196,5270%76,4002,664588.29%
KMX7,725,900194,075-3.43%59,9001,505-6.11%
LOW6,500,000157,5600%47,6001,154-98.08%
GE7,777,900141,5580%12,502228-29.05%


Also read the Part 1, Part 2 and Part 4 of the list.


A Brief review of the companies with ownership of each investor:

Nalco Holding Company (NLC)

Warren Buffett owns 9,000,000 shares of NLC, valued as $219 million as of Mar. 31, 2010, which accounts for 0.43% of his equity portfolio. George Soros owns 8,800 shares of NLC, valued as $0 million as of Mar. 31, 2010, which accounts for 0% of his equity portfolio.

During the past century, Nalco Holding Company has grown from a fledgling water treatment business to a provider of integrated water treatment and process improvement services, chemicals and equipment programs for industrial and institutional applications. Nalco Holding Company has a market cap of $3.37 billion; its shares were traded at around $24.4 with a P/E ratio of 26.1 and P/S ratio of 0.8. The dividend yield of Nalco Holding Company stocks is 0.6%. Nalco Holding Company had an annual average earning growth of 4.5% over the past 5 years.

Comcast Corp. Special (NASDAQ:CMCSK)

Warren Buffett owns 12,000,000 shares of CMCSK, valued as $216 million as of Mar. 31, 2010, which accounts for 0.42% of his equity portfolio. George Soros owns 66,100 shares of CMCSK, valued as $1 million as of Mar. 31, 2010, which accounts for 0.02% of his equity portfolio.

Comcast Corporation is principally involved in the development, management and operation of broadband cable networks, and in the provision of electronic commerce and programming content. Comcast Corp. Special has a market cap of $52.7 billion; its shares were traded at around $18.23 with a P/E ratio of 15.1 and P/S ratio of 1.5. The dividend yield of Comcast Corp. Special stocks is 2.1%. Comcast Corp. Special had an annual average earning growth of 14.9% over the past 10 years.

IngersollRand Company Ltd. (NYSE:IR)

Warren Buffett owns 5,636,600 shares of IR, valued as $197 million as of Mar. 31, 2010, which accounts for 0.39% of his equity portfolio. George Soros owns 76,400 shares of IR, valued as $3 million as of Mar. 31, 2010, which accounts for 0.04% of his equity portfolio.

Ingersoll Rand Company is one of the providers of security and safety, climate control, industrial productivity and infrastructure products. Ingersollrand Company Ltd. has a market cap of $12 billion; its shares were traded at around $37.29 with a P/E ratio of 20.3 and P/S ratio of 0.9. The dividend yield of Ingersollrand Company Ltd. stocks is 0.8%.

CarMax Inc. (NYSE:KMX)

Warren Buffett owns 7,725,900 shares of KMX, valued as $194 million as of Mar. 31, 2010, which accounts for 0.38% of his equity portfolio. George Soros owns 59,900 shares of KMX, valued as $2 million as of Mar. 31, 2010, which accounts for 0.02% of his equity portfolio.

CarMax Group is a subsidiary of Circuit City Stores, Inc. Carmax Inc. has a market cap of $4.69 billion; its shares were traded at around $20.99 with a P/E ratio of 14 and P/S ratio of 0.6. Carmax Inc. had an annual average earning growth of 18.7% over the past 5 years.

Lowe's Companies Inc. (NYSE:LOW)

Warren Buffett owns 6,500,000 shares of LOW, valued as $158 million as of Mar. 31, 2010, which accounts for 0.31% of his equity portfolio. George Soros owns 47,600 shares of LOW, valued as $1 million as of Mar. 31, 2010, which accounts for 0.02% of his equity portfolio.

Lowe's Companies Inc. is a retailer of home improvement products in the world, with specific emphasis on retail do-it-yourself and commercial business customers. Lowe's Companies Inc. has a market cap of $30.17 billion; its shares were traded at around $21.11 with a P/E ratio of 16.8 and P/S ratio of 0.6. The dividend yield of Lowe's Companies Inc. stocks is 1.7%. Lowe's Companies Inc. had an annual average earning growth of 11.8% over the past 10 years.

General Electric Company (NYSE:GE)

Warren Buffett owns 7,777,900 shares of GE, valued as $142 million as of Mar. 31, 2010, which accounts for 0.28% of his equity portfolio. George Soros owns 12,502 shares of GE, valued as $0 million as of Mar. 31, 2010, which accounts for 0% of his equity portfolio.

General Electric is one of the largest and most diversified industrial corporations in the world. General Electric Company has a market cap of $167.73 billion; its shares were traded at around $15.71 with a P/E ratio of 14.4 and P/S ratio of 1. The dividend yield of General Electric Company stocks is 2.4%. General Electric Company had an annual average earning growth of 14.1% over the past 10 years. GuruFocus rated General Electric Company the business predictability rank of 4-star.

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