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

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

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!