Glenn Greenberg's Top 4 Buys of the 1st Quarter

Guru's top new buys include Facebook and acute-care company

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James Li
May 21, 2020
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Glenn Greenberg (Trades, Portfolio), manager of New York-based Brave Warrior Advisors, disclosed last week that his top four buys for the first quarter included new stakes in HCA Healthcare Inc. (HCA, Financial) and Facebook Inc. (FB, Financial) and position boosts in Primerica Inc. (PRI, Financial) and Anthem Inc. (ANTM, Financial).

Managing a portfolio of 22 stocks, Greenberg maintains a highly concentrated portfolio that he describes as defense against ignorance. Greenberg believes that the more companies one owns, the less one will know about each and can lead to investing mistakes due to fear and greed.

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Greenberg invests in companies with little competition and emphasizes the return on invested capital. The $1.74 billion equity portfolio had a 23% turnover rate during the quarter, with 54.87% weight in financial services, 22.37% weight in health care and 15.10% in communication services, its top three sectors in terms of weight.

HCA Healthcare

Greenberg purchased 1,381,943 shares of HCA Healthcare, giving the stake 7.15% weight in the equity portfolio. Shares averaged $130.36 during the first quarter.

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The Nashville, Tennessee-based company operates a network of acute-care hospitals in the U.S. GuruFocus ranks the companys profitability 9 out of 10 on the back of consistent revenue growth and profit margins that are outperforming 76.92% of global competitors.

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Facebook

Greenberg purchased 330,862 shares of Facebook, giving the position 3.18% weight in the equity portfolio. Shares averaged $196.62 during the first quarter.

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GuruFocus ranks the Menlo Park, California-based social media giants financial strength and profitability 9 out of 10 on several positive investing signs, which include robust interest coverage, expanding operating marginsand a return on assets that outperforms 87.25% of global competitors.

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Gurus with large holdings in Facebook include

Chase Coleman (Trades, Portfolio)s Tiger Global Management and Pioneer Investments (Trades, Portfolio).

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Primerica

Greenberg added 753,467 shares of Primerica, increasing the holding 105.51% and the equity portfolio 3.84%. Shares averaged $115.11 during the first quarter.

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The Duluth, Georgia-based company provides financial services to middle-income households in the U.S. and Canada. According to GuruFocus, Primericas net margin and return on equity are outperforming over 86% of global competitors while the companys debt ratios are underperforming over 92% of global insurance companies.

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Anthem

Greenberg added 247,815 shares of Anthem, increasing the position 39.48% and the equity portfolio 3.24%. Shares averaged $273.87 during the first quarter.

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According to GuruFocus, the Indianapolis-based health care plans company has a four-star predictability rank, suggesting consistent revenue and earnings growth over the past 10 years.

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Disclosure: No positions.

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I am an editorial researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!