Visa, Mastercard, and More: Billionaire Julian Robertson’s Favorite Services Stocks

Page 1 of 2

TIGER MANAGEMENTJulian Robertson became a billionaire through his success at Tiger Management, and also had an enormous effect on the financial world by identifying and grooming a pack of “Tiger Cubs” who are now successful hedge funds managers- and, in some cases, billionaires- themselves. While he no longer manages Tiger for outside investors, he reports many of his long equity positions in quarterly 13F filings (find Robertson’s favorite stocks). We’ve already looked at some of his top picks, and can also consider different sectors or industries to see which of those stocks Robertson likes. While it’s not a good idea to just copy any investor blindly, particularly as 13F filings can be out of date, we can consider these stocks to be free ideas that we can look at further. Here are the five services stocks that Robertson reported the largest positions on the 13F:

Robertson’s favorite services stock was Mastercard Inc (NYSE:MA), with close to 60,000 shares in his portfolio. The legendary investor had recommended credit card stocks about a year ago, arguing that the companies themselves did not bear credit risk and would see increased business from higher payment volumes. Mastercard’s stock price is up 28% in the last year, though net income is only 8%; this has resulted in a trailing earnings multiple of 28 and therefore a valuation dependent on strong growth. The forward P/E is 19, which is still a bit high for us given the company’s recent growth rates (and, of course, the gap between the trailing and forward multiples indicates high growth expectations for 2013).

Robertson owned about 410,000 shares of Liberty Global Inc. (NASDAQ:LBTYA), a cable, Internet, and phone company which operates primarily in Europe and Chile. It’s another pricy stock, valued at 34 times consensus earnings for 2013. In addition, sales were only up 4% in the third quarter compared to the same period in 2011. Billionaire- and Tiger Cub- Stephen Mandel’s Lone Pine Capital reported a position of 4.4 million shares in Liberty Global at the end of the quarter (check out more of Mandel’s stock picks). We don’t think that it’s a good stock to buy.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!