Ken Fisher (Trades, Portfolio), CEO and chief investment officer of Fisher Investments, disclosed this week that his top four buys for the second quarter were position expansions in NextEra Energy Inc. (NEE, Financial), UnitedHealth Group Inc. (UNH, Financial), 3M Co. (MMM, Financial) and The Walt Disney Co. (DIS, Financial).
Fisher, who studied under his father and legendary investor Phil Fisher, wrote Forbes' prestigious "Portfolio Strategy" column from 1984 to 2016 and several finance books, including 1984 Dow Jones bestseller "Super Stocks." The guru's Camas, Washington-based firm invests in stocks based on the idea that supply and demand of securities solely determines the share price, further believing that the market has already priced in all information regarding the stock.
As of the quarter's end, Fisher's $102.32 billion equity portfolio contains 847 stocks, with 106 new holdings and a turnover ratio of 11%. The top four sectors in terms of weight are technology, consumer cyclical, financial services and health care, accounting for 26.06%, 13.86%, 12.64% and 11% of the equity portfolio.
NextEra Energy
Fisher purchased 2,936,392 shares of NextEra Energy, increasing the stake from the previous-quarter holding of just 1,847 shares. Shares averaged $239.44 during the second quarter.
The Juno Beach, Florida-based company distributes power to roughly 5 million households in the state through its regulated utility supplier, Florida Power & Light. GuruFocus ranks NextEra Energy's profitability 6 out of 10: Even though returns on assets outperform just 53% of global competitors, operating margins are near a 10-year high of 28.60% and are outperforming 82.86% of global regulated utilities.
Other gurus with holdings in NextEra Energy include Jim Simons (Trades, Portfolio)' Renaissance Technologies and Pioneer Investments (Trades, Portfolio).
UnitedHealth
Fisher purchased 2,341,377 shares of UnitedHealth, increasing the position from the previous-quarter holding of 5,693. Shares averaged $285.69 during the second quarter.
The Minnetonka, Minnesota-based company offers employer-sponsored, self-directed and government-backed insurance plans. GuruFocus ranks UnitedHealth's profitability 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a five-star business predictability rank and an operating margin that has increased approximately 1% per year on average over the past five years.
3M
Fisher purchased 4,381,861 shares of 3M, increasing the stake from the previous holding of 47,369 shares. Shares averaged $150.38 during the second quarter.
The St. Paul, Minnesota-based company manufactures a wide range of products, including Post-It notes, Scotch tape and Filtrete home filters. GuruFocus ranks 3M's profitability 8 out of 10, driven by a four-star business predictability rank and profit margins that are outperforming over 92% of global competitors.
Disney
Fisher purchased 4,581,961 shares of Disney, increasing the stake from the previous holding of 4,504,570 shares. Shares averaged $110.22 during the second quarter.
GuruFocus ranks the Burbank, California-based entertainment giant's profitability 8 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and an operating margin that outperforms over 70% of global competitors.
Disclosure: Long 3M.
Read more here:
- Andreas Halvorsen's 5 Biggest Trades of the 2nd Quarter
- 4 Construction and Health Care Companies With High Financial Strength
- Yacktman Asset Management's Top 5 Sells of the 2nd Quarter
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