• New Purchases: APA, PDS, IBM,
• Added Positions: LUMN,

The stock of Lumen Technologies (NYSE:LUMN, 30-year Financials) is believed to be modestly overvalued, according to GuruFocus Value calculation. GuruFocus Value is GuruFocus' estimate of the fair value at which the stock should be traded. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. On the other hand, if it is significantly below the GF Value Line,

Prem Watsa (Trades, Portfolio)'s Fairfax Financial Holdings sold shares of the following stocks during the fourth quarter, which ended on Dec. 31.

Fitbit

The firm exited its position in Fitbit Inc. (FIT). The trade had an impact of -0.84% on the portfolio.

The company, which manufactures health and fitness devices, has a market cap of $1.89 billion and an enterprise value of $1.55 billion.

GuruFocus gives the company a profitability and growth rating of 2 out of 10. The return on equity of -53.61% and return on assets of -21.15% are

Southeastern Asset Management recently disclosed its portfolio updates for the fourth quarter of 2020, which ended on Dec. 31.

Founded by Mason Hawkins (Trades, Portfolio) in 1975, the Memphis, Tennessee-based firm manages the Longleaf Partners Funds. The firm employs a fundamental, bottom-up appraisal process based on in-house research in order to select a concentrated portfolio of quality investments that have strong balance sheets, good management teams and attractive valuations.

Based on its investment criteria, the firm's biggest buys for the quarter were Douglas Emmett Inc. (DEI) and MGM Resorts International (MGM), while its most significant sells were

US Markets

U.S. stocks were down on Friday morning after yesterday's rally. The Dow fell 0.91% to 30,325, the S&P 500 index lost 0.80% to 3,757 and the Nasdaq Composite Index was down 0.64%, to 13,252.

Gainers

• Robert Half International Inc (RHI) +6%

• Iron Mountain Inc (IRM) +4.8%

• Lumen Technologies Inc (LUMN) +5.3%

• Danaher Corp (DHR) +3.3%

• NRG Energy Inc (NRG) +3.3%

Losers

• Lincoln National Corp (LNC) +6.4%

• Resmed Inc (RMD) -6.4%

• United Rentals Inc (URI) -4.5%

• Carnival Corp (CCL) -4.2%

• Juniper Networks Inc (JNPR) -3.6%

Global Markets

US Markets

U.S. stocks were down on Wednesday morning, with investors' eyes on the Federal Open Market Committee's (FOMC) January monetary policy meeting. The Dow fell 1.07% to 30,604, the S&P 500 index lost 1.27% to 3,800 and the Nasdaq Composite Index was down 0.92% to 13,500.

Gainers

• Lumen Technologies Inc (LUMN) +13%

• Iron Mountain Inc (IRM) +9.6%

• Clorox Co (CLX) +6.5%

• Campbell Soup Co (CPB) +6%

• General Dynamics Corp (GD) +4.5%

Losers

• L Brands Inc (LB) -6.7%

• Advance Auto Parts Inc (AAP) -6.4%

• Rollins Inc (ROL) -6.4%

• Gap Inc

Lumen (LUMN) (-19%, -2.71%; -1%, -0.12%), the fiber telecom company formerly named CenturyLink, was a top detractor for the year and the only (slight) detractor in the fourth quarter. During the last quarter, Enterprise fiber revenues grew 0.8% year-over-year, International and Global declined 2.6% and Small and Medium Business (SMB) shrunk 5.8% due to COVID repercussions. Yet margins slightly increased due to the strong cost controls of CEO Jeff Storey and CFO Neel Dev. Despite significant deleveraging over the last two years and multiple debt issuances this year at low to mid-single digit interest rates, the stock trades at

Southeastern Asset Management, the firm founded by Mason Hawkins (Trades, Portfolio), disclosed this week that it reduced its holding of Graham Holdings Co. (GHC) according to GuruFocus Real-Time Picks, a Premium feature.

The Memphis, Tennessee-based firm seeks long-term capital appreciation through investments in the stock of companies with good businesses, good people and good prices. Management at Southeastern believes the portfolio should contain top investment ideas; further, the firm generally holds at most 25 stocks per portfolio.

Transaction details and company background

Southeastern reduced its Graham Holdings position by 57,353

Investing in high growth business sectors comes at a cost. More often than not, stocks representing such industries trade at high valuation multiples, attaching a significant risk to those investment opportunities.

In some rare instances, however, market gyrations open up lucrative opportunities in growth companies, and investors who double down on growth stocks at cheap multiples often end up booking in handsome returns down the line. Lumen Technologies, Inc. (LUMN), previously known as CenturyLink, seems poised to grow exponentially in the coming years, but the market seems to be oblivious to that fact.

The outlook

The rollout of 5G technology

Southeastern Asset Management, the investment firm founded by Mason Hawkins (Trades, Portfolio) in 1975, disclosed it curbed its holdings in two companies last week.

To achieve long-term capital growth, the Memphis, Tennessee-based firm, which manages the Longleaf Partners Funds, invests in a concentrated number of undervalued companies that have strong balance sheets and good management teams.

According to GuruFocus Real-Time Picks, a Premium feature, the firm trimmed its Lazard Ltd. (LAZ) stake by 22.49% and reduced its position in Liberty Formula One Group (FWONA) by 52.36% on Dec. 10.

Lazard

With an impact of -1.67% on

Southeastern Asset Management, the investment firm founded by Mason Hawkins (Trades, Portfolio) in 1975, disclosed it increased its stake in Lumen Technologies Inc. (LUMN) by 3.66% last week.

To achieve long-term capital growth, the Memphis, Tennessee-based firm, which manages the Longleaf Partners Funds, invests in a concentrated number of undervalued companies that have strong balance sheets and good management teams.

According to GuruFocus Real-Time Picks, a Premium feature, the firm invested in 2.3 million shares of the Monroe, Louisiana-based telecommunications company on Dec. 3, impacting the equity portfolio by 0.62%. The stock traded for an average

On Sept. 14, CenturyLink announced it is rebranding as Lumen Technologies Inc. (LUMN).

The word "lumen" comes from Latin, meaning "light," which is a clear reference to the physical substrate of a fiber communication infrastructure.

The announcement contains (as with any rebranding) a lot of shiny words and concepts, as leading the 4H Industrial Revolution, Adaptive Networking, Edge Cloud agility, etc. These topics are of course important and will be even more important in the next decade, but they aren't new. The company has been working on those for several years.

What, then, is really new? It's the

CenturyLink (CTL) (-27%, -3.28%), the fiber telecom company, was the largest detractor, despite reporting over $1 of FCF per share in the fourth quarter of 2019. Two sell-side analysts downgraded CenturyLink to a “sell” in the last few weeks of the quarter, with the primary points of concern being the long-challenged consumer and voice business and an expected decline in earnings before interest, tax, depreciation and amortization (EBITDA), as customers within the small and medium business (SMB) segment shut down in the current environment. Our case has always assumed that the “bad” consumer and voice business, comprising roughly one-third

Longleaf Partners Fund declined -28.87% in the first quarter, while the S&P 500 Index fell -19.60%. As the largest shareholder group in the Fund, we are disappointed in both our absolute and relative results. While looking to the future does not lessen or excuse the near-term performance pain, we are more excited for the long-term prospects of our portfolio than we have been in over a decade. As global markets have been rocked by extreme uncertainty and fear in the last two months, we have seen a rapid rise in stock price volatility and a steep decline in investor sentiment.

U.S. stocks were in the red on Friday after new cases of the coronavirus were reported in eight countries, including Mexico and Nigeria. The Dow Jones Industrial Average fell 3.37% to 24,898, the S&P 500 Index lost 2.80% to 2,895 and the Nasdaq Composite Index declined 2.15% to 8,382.

Non-index stocks have posted gains and losses recently. Shares of Autodesk Inc. (ADSK) jumped almost 2% on Friday after the company announced fourth-quarter results. The company posted