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Sally Jones
Sally Jones
Articles (580) 

Action on AIG, MS, WTSL - Warren Buffett Snags AIG Execs for Berkshire

April 29, 2013 | About:
It’s not so much an AIG walk out but a top executive stroll out to greener pastures in the Investors' Oz of Omaha. The executive trading story of the hour is that Warren Buffett of Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) is hiring AIG CEO Peter Eastwood and three other executives, according to Insurance Insider. The other AIG executives packing for Omaha are David J. Bresnahan, Sanjay Godhwani and David Fields.

Other trading stories following recent Guru action on AIG, MS, and WTSL:

American International Group, Inc. (NYSE:AIG)

The AIG shares trading story is that Guru Arnold Schneider of Schneider Capital Management purchased 163,080 shares of AIG in the price range of $34.84 - $39.58, as of March 31, 2013. This will impact his billion dollar portfolio by 0.58%. The current share price is $40.87 with a change from average up 9%, according to GuruFocus Real Time Picks.

Property and casualty insurer American International Group, Inc. (AIG) shares are up 20% over 12 months. The company has a market cap of $62.42 billion. Its key ratios are a P/E of 27.5, a P/B of 0.62, and a P/S of 1.05.

AIG has does business in the U.S. and abroad via four business segments of General Insurance; Domestic Life Insurance & Retirement Services; Foreign Life Insurance & Retirement Services and Financial Services.

First Eagle Investment Management, LLC is the only other Guru trading AIG this quarter, reducing its position by 32.02%. Unloading 609,778 shares at an average price of $37.65 per share realized a 9% gain for First Eagle in first quarter 2013.

Morgan Stanley (NYSE:MS)

As of March 31, 2013, Guru Arnold Schneider also purchased 34,110 shares of Morgan Stanley (NYSE:MS) for the average price of $22.27. This trade will impact his portfolio by 0.07%. The current share price is $21.40 with a change from average down 4%.

Morgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments including Institutional Securities, Global Wealth Management Group, and Asset Management. Its shares are up 26% over 12 months. The company has a market cap of $42.8 billion. Its key ratios are a P/E of 39.5, a P/B of 0.7, and a P/S of 1.48.

Diamond Hill Capital also increased its Morgan Stanley position in the same quarter by 2965.62%., while Guru Ken Fisher reduced his position by 31.42%.

Wet Seal Inc. (WTSL)

As of March 31, 2013, Guru Schneider also purchased 161,237 shares of women’s clothing chain Wet Seal Inc. (WTSL) in the price range of $2.7 - $3.11. This trade will impact his portfolio by 0.04%. The current share price is $3.14 with a change from average up 8%.

Retailer Wet Seal Inc. (WTSL) sells apparel and accessories designed for teens and the under-40 woman. Its shares are up 13% since January. The company has a market cap of $280.71 million. Its key ratios are a P/B of 2.19, and a P/S of 0.48.

Wet Seal, Inc. operates approximately 558 retail stores in 47 states, Puerto Rico and Washington D.C., and has an online presence. The company operates two chains of retail stores under the names "Wet Seal" and "Arden B."

Guru Chuck Royce of Royce & Associates also bought WTSL new in the same quarter at the same average price for 367,179 shares.

Arnie Schneider is President, Chief Investment Officer and Principal of Schneider Capital Management Corp. His recent portfolio update shows 122 stocks with a total value of $1.1 billion and a quarter-over-quarter turnover of 6%.

Here are his top buys, sells, and holdings:

GuruFocus "Real Time Picks" reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only. If you are not a Premium Member, we invite you for a 7-day Free Trial.

Check out the GuruFocus special feature 52-week low screener to help you find stocks hitting new lows but are still held by top investor Gurus and Insiders. Researching these stocks may help you find deep valued stocks.

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: 2.8/5 (5 votes)


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