Diamond Hill Buys Berkshire, Microsoft, PepsiCo

The guru's top purchases in the 1st quarter

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May 05, 2017
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Diamond Hill Capital (Trades, Portfolio) is a registered investment adviser based in Columbus, Ohio. It manages a portfolio composed of 166 stocks with a total value of $17.860 billion. During the first quarter the guru bought shares in the following stocks.

The guru raised its shares in Berkshire Hathaway Inc. (BRK.B) by 103.30% with an impact of 0.51% on the portfolio.

The company is engaged in the insurance business. Its insurance businesses are conducted on a primary basis and reinsurance basis, freight rail transportation, utility and energy generation and distribution.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. While the return on equity (ROE) of 9.05% is underperforming the sector, return on assets (ROA) of 4.07% is outperforming 77% of the companies in the Global Insurance - Diversified industry. Financial strength has a rating of 7 out of 10 with a cash-debt ratio of 0.85.

The largest shareholder among the gurus is Bill Gates (Trades, Portfolio) with 2.81% of outstanding shares followed by Ken Fisher (Trades, Portfolio) with 0.23%, Ruane Cunniff (Trades, Portfolio) with 0.16%, Tom Russo (Trades, Portfolio) with 0.1%, David Rolfe (Trades, Portfolio) with 0.1%, Lou Simpson (Trades, Portfolio) with 0.08%, Chris Davis (Trades, Portfolio) with 0.07% and Tom Gayner (Trades, Portfolio) with 0.06%.

The guru increased its shares in PepsiCo Inc. (PEP) by 92.15% with an impact of 0.47% on the portfolio.

It is a food, snack and beverage company. It manufactures, markets, distributes and sells convenient and enjoyable beverages, foods and snacks, serving customers and consumers in more than 200 countries and territories.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 57.06% and ROA of 9.19% are outperforming 69% of the companies in the Global Beverages - Soft Drinks industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.41 is below the industry median of 0.72.

Donald Yacktman (Trades, Portfolio) is the largest shareholder among the gurus with 0.59% of outstanding shares followed by Fisher with 0.38%, Yacktman Fund (Trades, Portfolio) with 0.27%, Pioneer Investments (Trades, Portfolio) with 0.26%, Yacktman Focused Fund (Trades, Portfolio) with 0.19%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.17%, Jim Simons (Trades, Portfolio) with 0.16% and Diamond Hill Capital with 0.11%.

The guru raised its position in Honeywell International Inc. (HON) by 147.61% with an impact of 0.38% on the portfolio.

It is a technology and manufacturing company, serving customers with aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products and chemicals.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 25.47% and ROA of 9.25% are outperforming 84% of the companies in the Global Diversified Industrials industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.61 is below the industry median of 1.08.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 1.04% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 0.56%, Mairs and Power (Trades, Portfolio) with 0.29%, Mario Gabelli (Trades, Portfolio) with 0.21%, Pioneer Investments with 0.18% and Daniel Loeb (Trades, Portfolio) with 0.18%.

The guru increased its shares in Cimarex Energy Co. (XEC) by 14.98%. The trade had an impact of 0.33% on the portfolio.

It is an oil and gas exploration and production company with operations focused in two main areas: the Mid-Continent region and the Permian Basin.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10. While the ROE of -17.31% is underperforming the sector, ROA of -9.02% is outperforming 50% of the companies in the Global Oil & Gas E&P industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.44 is below the industry median of 0.72.

Steven Cohen (Trades, Portfolio) is another notable shareholder among the gurus with 0.85% of outstanding shares followed by First Pacific Advisors (Trades, Portfolio) with 0.38%, Pioneer Investments with 0.33%, Columbia Wanger (Trades, Portfolio) with 0.24%, FPA Capital Fund (Trades, Portfolio) with 0.24% and Charles de Vaulx (Trades, Portfolio) with 0.16%.

The guru increased its holding in Microsoft Corp. (MSFT) by 19.86%. The transaction had an impact of 0.32% on the portfolio.

The company is engaged in designing, manufacturing, selling devices and online advertising. Its products include operating systems for computing devices, servers, phones and other devices.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 25.04% and ROA of 8.58% are outperforming 75% of the companies in the Global Software – Infrastructure industry. Financial strength has a rating of 6 out of 10 with a cash-debt ratio of 1.50 that is below the industry median of 10.13.

The largest shareholder among the gurus is PRIMECAP Management with 0.69% of outstanding shares followed by Dodge & Cox with 0.55%, Jeff Ubben (Trades, Portfolio) with 0.5%, First Eagle Investment (Trades, Portfolio) with 0.31%, Andreas Halvorsen (Trades, Portfolio) with 0.28% and Fisher with 0.24%.

The guru acquired 969,326 shares in Validus Holdings Ltd. (VR) with an impact of 0.31% on the portfolio.

The company provides reinsurance coverage, insurance coverage and insurance linked securities management through its operating segments Validus Re, Talbot, Western World and AlphaCat.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 7.47% and ROA of 2.53% are underperforming 51% of the companies in the Global Insurance – Reinsurance industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.51 is below the industry median of 3.44.

Diamond Hill Capital is the largest shareholder among the gurus with 1.22% of outstanding shares followed by RS Investment Management (Trades, Portfolio) with 1.07%, Richard Pzena (Trades, Portfolio) with 0.88%, Simons with 0.34% and Paul Tudor Jones (Trades, Portfolio) with 0.02%.

The guru raised its position in MetLife Inc. (MET) by 16.13%. The transaction had an impact of 0.28% on the portfolio.

The company is a provider of insurance, annuities and employee benefit programs in the U.S., Japan, Latin America, Asia, Europe and the Middle East. It offers life insurance, annuities, property and casualty insurance and other financial services.

GuruFocus gives the stock a profitability and growth rating of 3 out of 10. The ROE of 0.95% and ROA of 0.09% are underperforming 89% of the companies in the Global Insurance – Life industry. Financial strength has a rating of 5 out of 10 with cash-debt ratio of 0.90 that is far below the industry median of 8.23.

The largest shareholder among the gurus is Dodge & Cox with 3.8% of outstanding shares followed by T Rowe Price Equity Income Fund with 0.63%, Pzena with 0.52%, NWQ Managers (Trades, Portfolio) with 0.13% and Richard Snow (Trades, Portfolio) with 0.11%.

The guru increased its holding in Citigroup Inc. (C) by 7.47% with an impact of 0.23% on the portfolio.

It is a financial services holding company. It provides financial products and services including consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of 6.17% and ROA of 0.86% are underperforming 69% of the companies in the Global Banks – Global industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.77 is below the industry median of 2.23.

Barrow, Hanley, Mewhinney & Strauss is the largest shareholder among the gurus with 0.71% of outstanding shares followed by HOTCHKIS & WILEY with 0.59%, First Pacific Advisors with 0.41% and Bill Nygren (Trades, Portfolio) with 0.35%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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