According to current portfolio statistics, a Premium feature of GuruFocus, Li Lu (Trades, Portfolio)’s Himalaya Capital Management’s first-quarter 13F equity portfolio contains several stocks that trade near 52-week lows as of Thursday: Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial), Bank of America Corp. (BAC, Financial) and Micron Technology Inc. (MU, Financial).
U.S. markets tumble on final day of first half
On Thursday, the Dow Jones Industrial Average closed at 30,775.43, down 253.88 points from Wednesday's close of 31,029.31.
Stocks tumbled on the final day of the first half as investors continue monitoring surging inflation and geopolitical advancements in Europe and Asia. According to the Aggregated Statistics Chart, a Premium feature, the average six-month total return of the Standard & Poor’s 500 Index is -15.34% with a median of -17.87%.
Firm background
Himalaya embraces the value investment principles of Benjamin Graham and Berkshire co-managers Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio). The firm seeks long-term capital appreciation by investing in the stocks of high-quality companies with wide economic moats and trustworthy management.
While the firm primarily focuses on Chinese investments, Himalaya has resumed filing 13Fs for its U.S.-based holdings. As of March, the company’s $2.38 billion equity portfolio contains six stocks, with the technology and financial services sectors having weights of 43.14% and 38.59%.
Investors should be aware the 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.
Berkshire Hathaway
Himalaya owns 897,749 Class B shares of Berkshire Hathaway (BRK.B, Financial), giving the position a 13.32% equity portfolio weight.
Class B shares of Berkshire Hathaway traded around $273.02, showing the stock is fairly valued based on Thursday’s price-to-GF Value ratio of 0.92. Despite this, the stock trades approximately 3.18% above its 52-week low.
The Omaha, Nebraska-based insurance conglomerate has a GF Score of 91 out of 100 based on a growth rank of 10 out of 10, a profitability rank of 8 out of 10 and a rank of 6 out of 10 for financial strength, GF Value and momentum.
Bank of America
Himalaya owns 14,586,987 shares of Bank of America (BAC, Financial), giving the position a 25.27% equity portfolio weight.
Shares of Bank of America traded around $31.09, showing the stock is modestly undervalued based on Thursday’s price-to-GF Value ratio of 0.82. The stock trades approximately 0.75% above its 52-week low.
The Charlotte, North Carolina-based bank has a GF Score of 72 out of 100: Although it has a momentum rank of 8 out of 10 and a GF Value rank of 7 out of 10, Bank of America’s profitability ranks 5 out of 10 while growth and financial strength rank just 4 out of 10.
Buffett’s conglomerate owns approximately 1.01 billion shares of Bank of America, giving the position 11.45% weight in its 13F equity portfolio.
Micron Technology
Himalaya owns 11,476,523 shares of Micron Technology (MU, Financial), giving the position a 37.57% equity portfolio weight.
Shares of Micron traded around $55.28, showing the stock is significantly undervalued based on Thursday’s price-to-GF Value ratio of 0.66. The stock trades approximately 3.51% above its 52-week low.
The Boise, Idaho-based semiconductor company has a GF Score of 97 out of 100 based on a rank of 10 out of 10 for profitability, growth and GF Value, a financial strength rank of 8 out of 10 and a momentum rank of 5 out of 10.
