Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Goldman Sachs Group, Inc. (GS), Starbucks Corporation (SBUX): Non-Wall Street Guru Betting On These Stocks

Page 1 of 2

Steve Leonard of Pacifica Capital Investments doesn’t come from Wall Street, LaSalle Street or even Canary Wharf, but from the commercial real estate market of California.  After spending 20 years selling commercial real estate, Leonard started the Pacifica fund in 1998 and has since then, consistently outperformed the S&P 500 by a weighted annualized return of 11.2% versus 3.6% for the S&P by investing in high-value, non-cyclical companies.  Let’s look at the top five stocks that Leonard picked for his equity portfolio.

At the top spot is Goldman Sachs Group, Inc. (NYSE:GS).  During the maelstrom on Wall Street in 2008 that claimed Bear Stearns, Lehman Brothers and Merrill Lynch, only Goldman Sachs Group, Inc. (NYSE:GS), JP Morgan Chase, and Morgan Stanley (NYSE:MS) (thanks to a $9 billion infusion from Mitsubishi Bank) emerged intact…almost.

Goldman Sachs Group Inc (NYSE:GS)

Goldman Sachs restructured itself as bank holding company, providing it with an asset base to help fund its investment and lending operations.  As a result, the more conservative Goldman Sachs Group, Inc. (NYSE:GS) has a balance sheet many Wall Street firms would envy; revenue is up 19% from 2011; net income jumped 68%, and the trailing price earnings ratio of 10.2x beats the rest of the sector at 25.5x.  Compare this to Morgan Stanley (NYSE:MS) with a trailing price/earning ratio of 1111x and 17% drop in 2012 revenue.

At number two is Berkshire Hathaway (NYSE:BRK.B) at 18.53% of the total Pacifica portfolio. Synonymous with Warren Buffett, BRK.B, is actually the holding company for a number of diverse businesses such as insurance, construction, media and finance.  Buffett is known for being debt-adverse, evident in the debt/equity ratio of his company of 0.3x.   Over the past 3 years, revenue has grown consistently — up 13% in 2012 from 2011 – and net income is up 44% from 2011.  Since the start of the year, BRK.B stock is up 13% to 105.56.

Third on the list of the top five is Starbucks Corp (NASDAQ:SBUX). Once know for only coffee, Starbucks Corp (NASDAQ:SBUX) has branched out to baked goods, tea and even fruit smoothies through recent acquisitions of La Boulange, Teavana and Evolution Fresh.  As a result, Starbucks Corp (NASDAQ:SBUX) is expected to maintain its market dominance in this sector against competitors such as Green Mountain Coffee (GMCR), Dunkin Donuts (DNKN) and Jamba Juice (JMBA), all of which are just brewing in Starbucks Corp (NASDAQ:SBUX)’s wake.

Who’s the best of the rest?

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!