Of the stocks in the Buffett-Munger model portfolio as of January, four have posted solid gains year to date: Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial), Allstate Corp. (ALL, Financial), Ingles Markets Inc. (IMKTA, Financial) and Canadian Pacific Railway Ltd. (CP, Financial).
The Buffett-Munger Screener, a Premium feature of GuruFocus, applies Berkshire co-managers Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio)’s four-criteria approach to investing: understandable business, favorable growth prospects, shareholder-oriented management and attractive prices.
As of Monday, the Buffett-Munger model portfolio has gained a cumulative 315.16% since its inception in 2009, averaging an annualized return of approximately 8.55% over the past 10 years.
Berkshire Hathaway
Class A shares of Berkshire Hathaway (BRK.A, Financial) traded around $483,760.17, up approximately 7.47% year to date while Class B shares (BRK.B, Financial) traded around $320.36, up approximately 7.97% year to date. The stock is modestly overvalued based on Monday’s price-to-GF Value ratio of 1.10.
The Omaha, Nebraska-based insurance conglomerate said during its annual meeting on Saturday that net earnings for the first quarter came in at $5.46 billion, down 53% from the prior-year quarter's earnings of $11.71 billion, driven primarily by declines in insurance underwriting earnings.
Berkshire said in its quarterly report that the Covid-19 pandemic, geopolitical concerns and disruption of supply chains continued hampering most of its operating businesses.
The insurance conglomerate has a GF Score of 90 out of 100, driven by a growth rank of 10 out of 10 and a profitability rank of 8 out of 10 despite financial strength, momentum and GF Value ranking just between 5 and out 6 out of 10.
Berkshire’s profitability ranks 8 out of 10 on several positive investing signs, which include a 3.5-star business predictability rank and profit margins and returns that are outperforming more than 90% of global competitors.
Gurus with holdings in Berkshire include Bill Gates (Trades, Portfolio)’ foundation trust and Diamond Hill Capital (Trades, Portfolio).
Allstate
Shares of Allstate (ALL, Financial) traded around $127.70, up approximately 8.28% year to date. The stock is modestly undervalued based on Monday’s price-to-GF Value ratio of 0.87.
The Northbrook, Illinois-based property and casualty insurance company has a GF Score of 92 out of 100, driven by a rank of 10 out of 10 for growth and momentum, a profitability rank of 8 out of 10, a GF Value rank of 7 out of 10 and a financial strength rank of 5 out of 10.
Allstate’s profitability ranks 8 out of 10 on the back of a five-star business predictability rank and 10 years of profitability out of the past 10 years.
Gurus with holdings with Allstate include Robert Bruce (Trades, Portfolio)’s Bruce & Co. and Louis Moore Bacon (Trades, Portfolio)’s Moore Capital Management.
Ingles Markets
Shares of Ingles Markets traded around $94.87, up approximately 8.23% year to date. The stock is significantly overvalued based on Monday’s price-to-GF Value ratio of 1.84.
The Black Mountain, North Carolina-based supermarket company has a GF Score of 80 out of 100, driven by a growth rank of 10 out of 10 and a profitability rank of 9 out of 10 despite momentum and GF Value ranking below 4 out of 10.
Canadian Pacific
Shares of Canadian Pacific traded around $72.51, up approximately 1.99% year to date. The stock is modestly overvalued based on Monday’s price-to-GF Value ratio of 1.19.
The Calgary, Alberta-based railroad company has a GF Score of 93 out of 100, driven by a rank of 10 out of 10 for profitability and growth and a momentum rank of 9 out of 10 despite financial strength and GF Value ranking just between 4 and 5 out of 10.
Canadian Pacific’s profitability ranks 10 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and profit margins outperforming more than 90% of global competitors.
