What Warren Buffett Likes About Chicago Bridge & Iron Company N.V. (CBI)

Page 1 of 2

Scores of investors scour Berkshire Hathaway Inc. (NYSE:BRK.A)’s holdings in attempts to mimic legendary CEO Warren Buffett’s picks. After all, Buffett is deemed the greatest investor of all time, and rightly so.

Berkshire Hathaway Inc. (NYSE:BRK.A) has averaged an annual growth in book value of 19.7% over the last 48 years. That compares to 9.4% for the S& P 500 Index, including dividends, over the same period.

Consider that a $10,000 investment in Berkshire Hathaway in 1965, the year Buffett took the helm, swelled to nearly $30 million by 2005. In comparison, $10,000 plowed into the broad-based S&P 500 would have grown to only about $500,000.

Moreover, the conglomerate produced a total return of 76% over the decade from 2000-2012, versus a negative 11.3% return for the broad based S&P. Even more impressive, Berkshire Hathaway Inc. (NYSE:BRK.A) has done it with minimal debt.

When Berkshire recently reported its Q1 portfolio holdings, it was revealed the Omaha based company holds 41 stocks with a total value of $85 billion. It upped its stake in Wells Fargo, Verisign , DaVita Health Care, Direct TV, Wal-Mart Stores and National Oilwell Vacaro. It reduced its position in snack food company Mondelez, and sold its position in General Dynamics and Archer Daniels Midland.

Chicago Bridge & Iron Company N.V. (NYSE:CBI)

Buffett’s only buy in Q1 was Chicago Bridge & Iron Company N.V. (NYSE:CBI)

In Q1, Buffett’s sole addition to his portfolio was Chicago Bridge & Iron Company N.V. (NYSE:CBI). Buffett bought 6,508,600 shares at an average price of $52.76.

The company, founded in 1889, provides conceptual design, technology, engineering, procurement, fabrication and construction, commissioning and associated maintenance services to customers in energy and natural resources industries.

Chicago Bridge & Iron Company N.V. (NYSE:CBI)’s first quarter 2013 results were impressive. Net income came in at $33.6 million or $0.32 a share. Revenue was $2.3 billion, with new contract awards of $1.9 billion, resulting in a backlog of $25.5 billion. Year-over-year, revenue soared 87%. Forward guidance was optimistic.

Present projects run the gamut of technologies for upstream and downstream oil and gas, nuclear, clean coal and gas, hydroelectric power, water and wastewater, metals and mining and federal projects.

Last year, Chicago Bridge & Iron Company N.V. (NYSE:CBI) bought rival Shaw Group in a $3 billion deal that created one of the world’s largest infrastructure companies. The merged company, called Chicago Bridge & Iron Company N.V. (NYSE:CBI) & Shaw, is involved in everything from building nuclear power plants in the U.S. and China to constructing gas-processing plants and oil storage tanks globally.

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 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!