Wal-Mart Stores, Inc. (WMT), Johnson & Johnson (JNJ): Buffett & Soros Are Bullish Here

Page 1 of 2

Billionaire George Soros is best known for his success as a global macro investor, particularly in currency instruments, but his hedge fund Soros Fund Management is also heavily invested in equities (see a history of the fund’s stock picks). In mid August the fund filed its quarterly 13F with the SEC, disclosing many of its long equity positions as of the end of June. While many investors argue that the information in 13Fs isn’t recent enough to be of any use, we’ve actually found that the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per year (learn more about our small cap strategy) with our own portfolio following this strategy having beaten the market by 33 percentage points in the last 11 months.

Of course, we can also look at George Soros’s stock picks and treat them as free initial investment ideas. To refine them further we can also look for stocks which Warren Buffett’s holding company Berkshire Hathaway reported owning in its own filing (find Buffett’s favorite stocks), as Berkshire has been a successful investor over the long term. Read on for our quick take on five stocks which both Berkshire and Soros’s hedge fund reported owning in their most recent 13Fs.

Both of these investors owned Wal-Mart Stores, Inc. (NYSE:WMTat the end of the second quarter, with Berkshire Hathaway having more than $3.7 billion invested in the big-box discount retailer. After what had apparently been a terrible start to its fiscal year, Wal-Mart Stores, Inc. (NYSE:WMT) has at least experienced some degree of growth in its first couple quarters compared to a year ago. The trailing P/E of 14 shows that markets expect weak numbers from the company going forward. We would note that Wal-Mart Stores, Inc. (NYSE:WMT)’s beta is only 0.3, demonstrating a lack of dependence on overall economic conditions.

hedge funds vs. mutual fundsAnother top Buffett pick which was also present in Soros Fund Management’s portfolio is DIRECTV (NASDAQ:DTV). The satellite TV company is also trading in value territory, with trailing and forward P/Es of 12 and 10 respectively; clearly, it is another business where investors are highly skeptical of the future. Sales have been up nicely, but these funds have been consumed by higher costs resulting in small decreases in operating income last quarter compared to Q2 2012. The EV/EBITDA multiple of 6.5x is also fairly low, possibly due to concerns about competition from cable companies in the premium market.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

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!