Fisher Asset Management was founded in 1979 by Ken Fisher, the author of seven money management books and three of the books are New York Times bestsellers. Fisher has been writing the Portfolio Strategy column for Forbes for more than 26 years. His stock picks beat the S&P 500 overall on average, underperforming the S&P 500 in just three years within the last 14 years. His investments outperformed the index by 24 percentage points in 2009 and 5 percentage points in 2010. We believe that by imitating the best stock picks of Fisher, investors are more likely to beat the market in the long term.
Below we compiled a list of top 15 positions of Ken Fisher’s portfolio as of September 30, 2011.
Johnson & Johnson (JNJ): Johnson & Johnson is engaged in the research and development, manufacture and sale of products in the health care field. For the third quarter of 2011, Johnson & Johnson reported revenue of $16 billion, compared with $15.0 billion for the same quarter a year ago. Its net income was $3.2 billion, a bit lower than the $3.4 billion a year ago. Fisher had $686 million invested in JNJ and it returned 0.49% since the end of September. JNJ has a market cap of $176.70B and a P/E ratio of 15.72. Warren Buffett had $2.8 billion invested in JNJ.
Oracle Corp (ORCL): Oracle Corporation is an enterprise software company. The company reported third quarter revenue of $8.37 billion, 22% lower than second quarter revenue. Its net income in third quarter is $1.84 billion, 43% lower than that of second quarter. Orcale is expected to earn $2.34 in 2011 and $2.56 in 2012. Fisher had $588 million invested in the stock and it returned 14.61% since the end of September. ORCL has a market cap of $170B and a P/E ratio of 19.20. During the second quarter, Lee Ainslie’s Maverick Capital initiated a brand new $279 million of ORCL shares.
Siemens Ag (SI): Siemens AG is engaged in electronics and electrical engineering. Siemens will hold an analyst conference on November 10. The company reported revenue of $17.8 billion for the 3 months ending June 30, 2011, compared with $17.4 billion for the same period a year ago. Net income declined from $1.4 billion to $462 million. Fisher had $565 million invested in SI and the stock returned 12.92% since the end of third quarter. SI has a market cap of $89.86B and a P/E ratio of 12.56. David Dreman also had $3.5 million invested in SI.
Amazon.com Inc (AMZN): Amazon.com is a customer-centric company. It reported a 73% drop in its quarterly profit. Its third-quarter net income was $63 million, or 14 cents a share, versus $231 million, or 51 cents a share, a year earlier. But its revenue was $10.88 billion, up 44 percent from the third quarter of 2010. The drop in the profit is mainly due to its heavy spending on new tablet computer and other long-term projects. At the end of September, Fisher had $547 million invested in AMZN and the stock returned 0.36% since then. It has a market cap of $98.56B and a P/E ratio of 114.19. Andreas Halvorsen also invested more than $400 million in AMZN.
Nestle Sa (NSRGY): Nestle SA is a Swiss Company engaged in the nutrition, health and wellness sectors. The company announced its nine-month sales of CHF 60.9 billion on October 20. In the first nine months of 2011, the Nestlé Group’s organic growth was 7.3%, including 4.1% real internal growth and pricing of 3.2%. Fisher had $526 million invested in Nestle and the stock returned 2.79% since September 30. It has a market cap of $186.91B. Tom Russo had $600+ million invested in NSRGY as of June 30. Boykin Curry also held $200+ million of the stock.