The Yacktman Fund (Trades, Portfolio) boosted its position in South Korean electronics company Samsung Electronics Co. Ltd. (XKRX:005935, Financial) by more than 50% with the purchase of 111,283 shares in the second quarter.
The fund paid an average price of â‚©1,086,610 ($955.02 in U.S. currency) per share in a deal that had a 1.63% impact on the fund’s portfolio.
The acquisition increased the fund’s holding to 332,834 shares, which is 0.23% of Samsung’s outstanding shares and 4.88% of the fund’s total assets. Yacktman Focused Fund (Trades, Portfolio) is Samsung’s leading shareholder among the gurus with 615,317 shares in its portfolio. Yacktman Focused Fund (Trades, Portfolio)’s holding is 0.43% of Samsung’s outstanding shares and 15.88% of Yacktman Focused Fund (Trades, Portfolio)’s total assets.
Samsung announced that it paid $449 million for 1.9% of Chinese electric carmaker BYD (BYDDF, Financial) last week. Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial) is a backer of BYD.
In another development last week, Samsung said it is suing Huawei Technologies for patent infringements. Samsung and Huawei, a private Chinese telecommunications equipment and services company, are two of the world’s largest smartphone makers.
Earlier this month, Samsung reported smartphones propelled the company to its highest operating profit in two years in the second quarter.
Samsung also announced plans last week to invest in Samsung Heavy Industries (XKRX:010140, Financial), its shipbuilding affiliate.
Samsung has a P/E of 10.8, a forward P/E of 2.7, a P/B of 1.3 and a P/S of 1.3. GuruFocus gives Samsung a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10 with ROE of 10.75% that is higher than 78% of the companies in the Global Consumer Electronics industry and ROA of 8.80% that is higher than 84% of the companies in that industry.
Samsung sold for â‚©1,211,000 ($1,064.34 in American dollars) per share Monday. The DCF Calculator gives Samsung a fair value of â‚©3,081,667.38 ($2,708.47 in U.S. money) with a 61% margin of safety.
Start a free seven-day trial of Premium Membership to GuruFocus.
