According to aggregated portfolio statistics, the four most-broadly-held guru stocks in the auto manufacturing sector are General Motors Co. GM, Fiat Chrysler Automobiles NV FCAU, Tesla Inc. TSLA and Ford Motor Co. F.
Most gurus have not released their second-quarter portfolios as the deadline is 45 days after quarter-end.
General Motors
Nineteen gurus own shares of General Motors with a combined weight of 37.92%. Berkshire Hathaway Inc. BRK.ABRK.B, Warren Buffett (Trades, Portfolio)’s conglomerate, owns 72,269,696 shares with an equity portfolio weight of 1.34%.
The Detroit-based company manufactures automobiles through brands like Cadillac, Chevrolet and Buick. GuruFocus ranks GM’s profitability 7 out of 10: Operating margins have increased approximately 14% per year on average despite underperforming 75% of global competitors. Additionally, the company has a solid Piotroski F-score of 6 and returns on equity that are outperforming 86.07% of global auto companies.
Fiat Chrysler
Eleven gurus own shares of Fiat Chrysler with a combined weight of 89.39%. Mohnish Pabrai (Trades, Portfolio) owns 13,105,047 shares, dedicating 73.48% of his public portfolio, which represents less than 30% of total discretionary assets, to the stake.
GuruFocus ranks Fiat Chrysler’s profitability 4 out of 10 on the heels of profit margins underperforming over 66% of global competitors. Additionally, the company’s 3.22% return on assets underperforms 64.95% of global auto manufacturers.
Tesla
Nine gurus own shares of Tesla with a combined weight of 3.54%. Ron Baron (Trades, Portfolio)’s 1,645,209 shares occupy 1.95% of the equity portfolio, while Spiros Segalas (Trades, Portfolio)’ 1,375,712 shares occupy 1.05% of the equity portfolio.
Shares of Tesla continued to decline Friday morning, trading at an intraday low of $222.25, which is down approximately 2.87% from Thursday’s close of $228.82 and down approximately 16.09% from Wednesday’s close of $264.88. The stock tumbled on the heels of reporting a second-quarter loss that exceeded the consensus estimate by approximately 60 cents per share.
GuruFocus ranks Tesla’s financial strength 4 out of 10 on several weak signs, which include debt ratios that underperform over 83% of global competitors and an Altman Z-score that suggests possible financial distress. Other warning signs include increasing long-term debt over the past three years and declining gross margins over the past five years.
Ford
Eight gurus own shares of Ford with a combined weight of 2.01%.
The Detroit-based auto company manufactures automobiles through brands like Ford and Lincoln. GuruFocus ranks the company’s financial strength 5 out of 10: Although it has a solid Piotroski F-score of 5, Ford’s Altman Z-score and debt ratios signal possible financial distress.
Disclosure: No positions.
Read more here:
- David Einhorn's Greenlight Adds 3 Holdings in 2nd Quarter
- Warren Buffett’s 4 Airline Holdings
- 5 Stocks to Consider as the UK Gains New Prime Minister
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
