According to current portfolio statistics, a Premium feature of GuruFocus, five stocks in Warren Buffett (Trades, Portfolio)’s first-quarter 13F equity portfolio with multiple insider buy transactions during the past six months include Liberty Latin America Ltd. (LILA, Financial), General Motors Co. (GM, Financial), Markel Corp. (MKL, Financial), Floor & Decor Holdings (FND, Financial) and HP Inc. (HPQ, Financial).
Legendary Fidelity Magellan Fund manager Peter Lynch said that while insiders may sell shares for several reasons, insiders buy shares only when they think their company’s stock is set to appreciate in value. GuruFocus’ research further suggests that stocks that gurus and insiders are buying offer further conviction.
GuruFocus’ Guru Portfolio pages allow Premium members to view several key information about a guru’s portfolio, including top holdings, undervalued stocks, top dividend yield stocks, stocks trading near 52-week lows and much more. The current portfolio statistics page also allows users to view the stocks in a guru’s portfolio with multiple insider buys over the past six months.
Buffett portfolio summary
Buffett adapts Benjamin Graham’s investing style and seeks good companies at fair prices. The “Oracle of Omaha” and co-Berkshire manager Charlie Munger (Trades, Portfolio) seek companies that have favorable growth prospects, honest and competent management and attractive valuations.
As of March, Berkshire’s $363.55 billion 13F equity portfolio contains 49 stocks, with eight new positions and a quarterly turnover of 12%. The top-four sectors in terms of weight are technology, financial services, consumer defensive and energy, representing 45.03%, 27.19%, 11.29% and 9.26% of the equity portfolio.
Investors should be aware that 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Liberty Latin America
Liberty Latin America (LILA, Financial) had four insider buy transactions over the past six months. The total number of shares purchased was 585,951.
Shares of Liberty Latin America traded around $8.78 on Thursday. Despite this, the GF Value Line labeled the stock as a possible value trap: Although the stock's price-to-GF Value ratio of 0.67 suggests modest undervaluation, Liberty Latin America’s financial strength and momentum rank just 4 out of 10 while profitability and growth rank just 5 out of 10. Based on these ranks, the telecommunications company has a GF Score of 71 out of 100.
General Motors
General Motors (GM, Financial) had three insider buy transactions over the past six months. The total number of shares purchased was 51,000.
Shares of General Motors traded around $37.39, showing the stock is modestly undervalued based on Thursday’s price-to-GF Value ratio of 0.89.
The Detroit-based automaker has a GF Score of 72 out of 100: Although the company has a rank of 7 out of 10 for profitability and GF Value, General Motors has a rank between 3 and 5 out of 10 for growth, financial strength and momentum.
Berkshire purchased 2,045,847 shares of General Motors, increasing the position 3.47%. Shares averaged $50.08 during the first quarter.
Other gurus with holdings in General Motors include Diamond Hill Capital (Trades, Portfolio) and Bill Nygren (Trades, Portfolio)’s Oakmark Fund.
Markel
Markel (MKL, Financial) had three insider buy transactions during the past six months. The total number of shares purchased was 208.
Shares of Markel traded around $1,363, showing the stock is fairly valued based on Thursday’s price-to-GF Value ratio of 0.93.
Markel co-CEO Tom Gayner (Trades, Portfolio) oversees the investing activities for the Glen Allen, Virginia-based insurance company. The company has a GF Score of 90 out of 100 based on a growth rank of 10 out of 10, a rank of 7 out of 10 for profitability and GF Value and a rank of 6 out of 10 for financial strength and momentum.
Berkshire invested in 420,293 shares of Markel, giving the position 0.17% equity portfolio weight. Shares averaged $1,290.96 during the first quarter.
Floor & Decor
Floor & Decor (FND, Financial) had three insider buy transactions over the past six months. The total number of shares purchased was 3,150.
Shares of Floor & Decor traded around $75.23, showing the stock is significantly undervalued based on Thursday’s price-to-GF Value ratio of 0.63.
The Atlanta-based flooring retail company has a GF Score of 97 out of 100, driven by a rank of 10 out of 10 for profitability and growth and a rank between 6 and 8 for financial strength, GF Value and momentum.
Berkshire added 3,936,291 shares of Floor & Decor, expanding the position by 466.55%. Shares averaged $101.32 during the first quarter.
HP
HP (HPQ, Financial) had two insider buy transactions during the past six months. The total number of shares purchased was 11,140,375.
Shares of HP traded around $36.67, showing the stock is fairly valued based on Thursday’s price-to-GF Value ratio of 1.07.
The Palo Alto, California-based computer and printer hardware company has a GF Score of 83 out of 100, driven by a rank of 8 out of 10 for profitability and growth and a rank of 6 out of 10 for financial strength and momentum despite the GF Value ranking just 3 out of 10.
