There has been an exclusive and extended interview with David Tepper of Appaloosa Management by CNBC this morning.
Tepper made a name for himself by backing up his truck and scoop up the financial stocks at the market low of 2Q09. He made $7.5 billion last year for his fund and returned 132 percent. But the performance is not unusual: Tepper returned an average north of 40% in the past 17 years.
He talked about his past trades and current outlook in this interview:
Talking about his success in the past, Tepper “it is easy, basically the government told you what they are going to do”, so he just followed the government and bought into the financials.
As for the future, Tepper sees that “everything going up, everything” since Fed is going to use QEII to create some inflation.
As Tepper said, he is more of a bond guy, but he has upped his equity long positions recently given the latest Fed statement. GuruFocus records that he has $2.87 billion in domestic traded equity scattered around 56 stocks. A close look reveals that his portfolio is very concentrated in this stocks:
No. 1: Bank of America Corp. (BAC, Financial), Weightings: 13.68% - 27,349,699 Shares
Bank of America Corp. is one of the world's financial services companies. Bank Of America Corp. has a market cap of $132.15 billion; its shares were traded at around $13.17 with and P/S ratio of 0.9. The dividend yield of Bank Of America Corp. stocks is 0.3%.
This is Tepper’s signature trade. He bought into the stock at lows of 1Q of 2009 and he has since sold some but still hold a truck load of the stock.
No. 2: WELLS FARGO PFD L (WFC.PL, Financial), Weightings: 9.85% - 304,019 Shares
This is a preferred Wells Fargo share.
No. 3: Citigroup Inc. (C, Financial), Weightings: 7.56% - 57,783,144 Shares
Citigroup Inc., the global financial services company. Citigroup Inc. has a market cap of $110.11 billion; its shares were traded at around $3.8 with and P/S ratio of 1.3.
No. 4: Wells Fargo & Company (WFC, Financial), Weightings: 7.04% - 7,901,200 Shares
Wells Fargo & Company is a diversified financial services company. Wells Fargo & Company has a market cap of $131.04 billion; its shares were traded at around $25.04 with a P/E ratio of 14.8 and P/S ratio of 1.4. The dividend yield of Wells Fargo & Company stocks is 0.8%. Wells Fargo & Company had an annual average earning growth of 5.1% over the past 10 years.
No. 5: Pfizer Inc (PFE, Financial), Weightings: 5.63% - 11,344,002 Shares
Pfizer Inc is a research-based, global pharmaceutical company. Pfizer Inc has a market cap of $136.97 billion; its shares were traded at around $17.04 with a P/E ratio of 7.6 and P/S ratio of 2.8. The dividend yield of Pfizer Inc stocks is 4.2%. Pfizer Inc had an annual average earning growth of 1.8% over the past 10 years.
No. 6: Fifth Third Bancorp (FITB, Financial), Weightings: 5.43% - 12,695,506 Shares
Fifth Third Bancorp is a registered financial holding company and a multi-bank holding company. Fifth Third Bancorp has a market cap of $9.33 billion; its shares were traded at around $11.72 with and P/S ratio of 1. The dividend yield of Fifth Third Bancorp stocks is 0.3%.
Check out Tepper’s stock portfolio with GuruFocus: http://www.gurufocus.com/holdings.php?GuruName=David+Tepper
GuruFocus provides these kind of real time information and insights of Investment Gurus such as Warren Buffettand David Tepper for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
Tepper made a name for himself by backing up his truck and scoop up the financial stocks at the market low of 2Q09. He made $7.5 billion last year for his fund and returned 132 percent. But the performance is not unusual: Tepper returned an average north of 40% in the past 17 years.
He talked about his past trades and current outlook in this interview:
Talking about his success in the past, Tepper “it is easy, basically the government told you what they are going to do”, so he just followed the government and bought into the financials.
As for the future, Tepper sees that “everything going up, everything” since Fed is going to use QEII to create some inflation.
As Tepper said, he is more of a bond guy, but he has upped his equity long positions recently given the latest Fed statement. GuruFocus records that he has $2.87 billion in domestic traded equity scattered around 56 stocks. A close look reveals that his portfolio is very concentrated in this stocks:
No. 1: Bank of America Corp. (BAC, Financial), Weightings: 13.68% - 27,349,699 Shares
Bank of America Corp. is one of the world's financial services companies. Bank Of America Corp. has a market cap of $132.15 billion; its shares were traded at around $13.17 with and P/S ratio of 0.9. The dividend yield of Bank Of America Corp. stocks is 0.3%.
This is Tepper’s signature trade. He bought into the stock at lows of 1Q of 2009 and he has since sold some but still hold a truck load of the stock.
No. 2: WELLS FARGO PFD L (WFC.PL, Financial), Weightings: 9.85% - 304,019 Shares
This is a preferred Wells Fargo share.
No. 3: Citigroup Inc. (C, Financial), Weightings: 7.56% - 57,783,144 Shares
Citigroup Inc., the global financial services company. Citigroup Inc. has a market cap of $110.11 billion; its shares were traded at around $3.8 with and P/S ratio of 1.3.
No. 4: Wells Fargo & Company (WFC, Financial), Weightings: 7.04% - 7,901,200 Shares
Wells Fargo & Company is a diversified financial services company. Wells Fargo & Company has a market cap of $131.04 billion; its shares were traded at around $25.04 with a P/E ratio of 14.8 and P/S ratio of 1.4. The dividend yield of Wells Fargo & Company stocks is 0.8%. Wells Fargo & Company had an annual average earning growth of 5.1% over the past 10 years.
No. 5: Pfizer Inc (PFE, Financial), Weightings: 5.63% - 11,344,002 Shares
Pfizer Inc is a research-based, global pharmaceutical company. Pfizer Inc has a market cap of $136.97 billion; its shares were traded at around $17.04 with a P/E ratio of 7.6 and P/S ratio of 2.8. The dividend yield of Pfizer Inc stocks is 4.2%. Pfizer Inc had an annual average earning growth of 1.8% over the past 10 years.
No. 6: Fifth Third Bancorp (FITB, Financial), Weightings: 5.43% - 12,695,506 Shares
Fifth Third Bancorp is a registered financial holding company and a multi-bank holding company. Fifth Third Bancorp has a market cap of $9.33 billion; its shares were traded at around $11.72 with and P/S ratio of 1. The dividend yield of Fifth Third Bancorp stocks is 0.3%.
Check out Tepper’s stock portfolio with GuruFocus: http://www.gurufocus.com/holdings.php?GuruName=David+Tepper
GuruFocus provides these kind of real time information and insights of Investment Gurus such as Warren Buffettand David Tepper for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
