Lou Simpson (Trades, Portfolio), an investor with Warren Buffett (Trades, Portfolio) connections, disclosed Monday he boosted stakes in his largest holdings during the third quarter and purchased no new stocks.
Simpson’s portfolio activity during the quarter resulted in two new top positions in the portfolio – Ametek Inc. (AME, Financial) and Brookfield Asset Management (BAM, Financial) – replacing Charles Schwab Corp. (SCHW, Financial) and Valeant Pharmaceuticals (VRX, Financial). Other largest increases were to Liberty Global PLC (LBTYK, Financial), Valeant and Berkshire Hathaway (BRK.B, Financial).
The portfolio of Simpson’s firm, SQ Advisors, contained just 13 stocks valued at $2.98 billion at quarter end. The largest sectors represented were financial services at 37.4% and industrials at 20.2%.
Simpson founded Florida-based SQ Advisors in 2010 after 31 years overseeing investments for Berkshire Hathaway (BRK.A, Financial) company Geico. In his 2004 shareholder letter, Buffett highlighted Simpson’s average annual gain of 20.3% from 1980 through 2004, compared to a 13.5% gain for the S&P 500, titling it “portrait of a disciplined investor.” Buffett also called him “a cinch to be inducted into the investment Hall of Fame.”
Top increases
Simpson increased his Ametek Inc. position by 351.5% to 8,135,680 shares, making it 14.3% of the portfolio. Ametek’s third quarter share price averaged $54.
Ametek Inc. was originally incorporated in Delaware in 1930 under the name American Machine and Metals Inc. Ametek Inc. has a market cap of $13 billion; its shares were traded at around $54.63 with a P/E ratio of 21.86 and P/S ratio of 3.33. The dividend yield of Ametek Inc. stocks is 0.67%. Ametek Inc. had an annual average earnings growth of 15.20% over the past 10 years. GuruFocus rated Ametek Inc. the business predictability rank of 5-star.
Liberty Global PLC (LBTYK, Financial)
Simpson increased his position in Liberty Global PLC by 61.5% to 7,963,336 shares, making it 10.97% of the portfolio. Liberty Global’s share price averaged $47.
Liberty Global PLC, formerly Liberty Global Inc., was incorporated as Lynx Europe Limited on Jan. 29, 2013. Liberty Global PLC has a market cap of $36.95 billion; its shares were traded at around $42.95 with and P/S ratio of 2.15. Liberty Global PLC had an annual average earnings growth of 11.0% over the past 10 years.
Brookfield Asset Management (BAM, Financial)
Simpson increased his position in Brookfield Asset Management Inc. by 25.8% to 13,440,590 shares, making it 14.2% of the portfolio. Brookfield Asset Management’s share price averaged $33.
Brookfield Asset Management Inc., a Canadian corporation was formed on Aug. 1, 1997. Brookfield Asset Management Inc. has a market cap of $32.13 billion; its shares were traded at around $33.46 with a P/E ratio of 13.72 and P/S ratio of 1.79. The dividend yield of Brookfield Asset Management Inc. stocks is 1.38%. Brookfield Asset Management Inc. had an annual average earnings growth of 12.8% over the past 10 years. GuruFocus rated Brookfield Asset Management Inc. the business predictability rank of 4-star.
Valeant Pharmaceuticals (VRX, Financial)
Simpson raised his position in Valeant Pharmaceuticals by 13% to 1,952,983 shares, making it 11.69% of the portfolio. Valeant’s share price averaged $233.
Valeant Pharmaceuticals International Inc. was formed under the Business Corporations Act (Ontario) on Feb. 18, 2000, as a result of the amalgamation of TXM Corporation and Biovail Corporation International. Valeant Pharmaceuticals International Inc. has a market cap of $25.02 billion; its shares were traded at around $72.93 with a P/E ratio of 47 and P/S ratio of 2.71. Valeant Pharmaceuticals International Inc. had an annual average earnings growth of 10.5% over the past 10 years.
Berkshire Hathaway (BRK.B, Financial)
Simpson increased his holding in Berkshire Hathaway by 6.3% to 2,694,091 shares, making it 11.8% of the portfolio. Berkshire Hathaway’s share price averaged $137.
Berkshire Hathaway Inc. was incorporated in the state of Delaware on June 16, 1998, under the name NBH Inc. Berkshire Hathaway Inc. has a market cap of $323.64 billion; its shares were traded at around $131.96 with a P/E ratio of 14.30 and P/S ratio of 1.57. Berkshire Hathaway Inc. had an annual average earnings growth of 9.9% over the past 10 years. GuruFocus rated Berkshire Hathaway Inc. the business predictability rank of 3-star.
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