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Sally Jones
Sally Jones
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Top Three Holdings of Texas Super Investor Arnold Van Den Berg

April 05, 2013 | About:

According to Guru Arnold Van Den Berg's value investor wisdom: "The lesson for investors is that even though the economy may not be in great shape, when stocks sell at deeply discounted prices relative to their intrinsic values, thus accounting for all the seemingly insoluble problems of the time, stocks should be bought aggressively." At a recent public employment retirement systems conference in Texas, Guru Arnold Van Den Berg, CEO and co-chief investment officer of Century Management, summarized the three investment performance drivers as inflation, interest rates and business fundamentals. Business trends in the U.S. look very positive for the long run, according to Van Den Berg, who also warned that the valuations of stocks and bonds warrant caution. He explained that inflation must be monitored, and added that their direction will be determined by what the Federal Reserve does, telling the audience that the most important thing is not to get locked into an opinion until they see what the Federal Reserve is going to do.

Century Management’s portfolio of 62 stocks has a total value of $1.02 billion, and a quarter over quarter turnover of 8%. Let’s see how Van Den Berg’s wisdom applies to the performance of his top three holdings.

As of April 4, 2013, his top three holdings are:

Jacobs Engineering Group (NYSE:JEC), an engineering and construction company, with 996,197 shares valued at $56 million, and weighting his portfolio for 5.49%

His holding history:

At an average cost per share of $36, Van Den Berg gained 47% on JEC in the last five years.

Van Den Berg also holds Cisco Systems Inc. (NASDAQ:CSCO) for 2,307,443 shares, valued around $48 million, with a portfolio weight of 4.32%.

At an average cost per share of $17, he gained 24% on CSCO in the last five years.

His holding history:

Van Den Berg’s third top holding is Berkshire Hathaway (NYSE:BRK.B), for 423,515 shares with a value of $44 million, and a portfolio weighting of $4.32.

His holding history:

At an average cost per share of $78, Van Den Berg gained 35% on BRK.B in the last five years.

Here are Arnold Van Den Berg’s top buys, sells and holdings:

Finally, a favorite quote at Capital Management is from John Maynard Keynes:

“The inevitable never happens. It is the unexpected always.”

See full story on Van Den Berg’s first quarter buys.

To see more of Arnold Van Den Berg’s trading activity, visit his portfolio here.

Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Arnold Van Den Berg.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.1/5 (10 votes)


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