Guru Bill Gates (Trades, Portfolio)Â sold his 6,134,939-share stake in BP PLC (BP, Financial) in the fourth quarter.
BP was originally incorporated in 1909 in England and is one of the world’s leading integrated oil and gas companies. The company provides its customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items such as diverse paints, clothes and packaging. BP operates in more than 70 countries across the globe and has 79,800 employees.
BP has a market cap of $102.22 billion, an enterprise value of $135.95 billion, a P/B ratio of 1.00 and a dividend yield of 7.90.
BP has three severe warning signs, according to GuruFocus. The Piotroski F-Score is low at 3, implying a poor business operation. BP’s revenue has been in decline for the past five years. It is also issuing new debt, which increases the variance of the company’s profits and revenues in the future. Over the previous three years BP has issued $5.3 billion worth of new debt, which is a severe warning sign.
Gates made the correct decision to sell out of BP because the company's financial statements have a high degree of risk and volatility. The world is also moving toward renewable green energy solutions, which are more cost efficient and help to protect the global environment.
Gates is the founder of Microsoft (MSFT, Financial) and is currently rated the richest man in the world, according to Forbes.com, with an estimated net worth of $77.3 billion. In the year 2000, Gates and his wife Melinda formed the Bill & Melinda Gates Foundation to help aid global health care to developing countries and reduce extreme poverty. The Bill & Melinda Gates Foundation Trust owns 18 stocks with a total value of $16.67 billion.
Cheers to your investment success.
