5 Top Stock Ideas For Q4 From Dalton Investments

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#2 Micron Technology, Inc. (NASDAQ:MU)

Shares held (as of September 30): 2.25 million
Total Value (as of September 30): $33.68 million
Percent of Portfolio (as of September 30): 16.95%

Micron Technology, Inc. (NASDAQ:MU) is off by 50.76% year-to-date as investors worried about industry oversupply and lower pricing. Investors also worried about PC’s secular decline, as research firm IDC expects worldwide PC shipments to fall by 8.7% in 2015 and ‘not stabilize until 2017’. Still, given the sector is consolidating and the oversupply problem will improve as companies cut back production, Micron shares offer great long-term value, as evidenced by Tsinghua Unigroup’s offer for Micron which was dismissed as untenable due to national security concerns. David Einhorn‘s Greenlight Capital, which owned some Micron shares at the end of June, had this to say about the company:

“With only three remaining players, the industry is behaving more rationally. Manufacturers are redirecting capacity away from computer DRAM to other segments, and we believe that the excess computer DRAM inventory created earlier this year is now being absorbed. Our assessment is that MU shares have fallen too far. Peak quarterly earnings last year were $1.04 and we expect the cyclical trough to be around $0.40 in the August quarter.”

At 7.5-times forward earnings, shares look cheap.

Follow Micron Technology Inc (NASDAQ:MU)

#1 Berkshire Hathaway Inc. (NYSE:BRK.B)

Shares held (as of September 30): 331,161
Total Value (as of September 30): $43.18 million
Percent of Portfolio (as of September 30): 21.73%

Berkshire Hathaway Inc. (NYSE:BRK.B) shares might be down by 8.5% year-to-date, but Warren Buffett is still the greatest investor of all time. His various lovingly-curated businesses will still outperform the market in bad times and will do almost as well in good times. Each Berkshire division has a wide moat, earns attractive returns on equity, and is run by capable managers. Although the divisions don’t have as many synergies among them as they could, the divisions are the leaders in their respective fields. With a forward P/E of 16.77 and interest rates soon to rise, Berkshire Hathaway is a great long-term investment.

Follow Berkshire Hathaway Inc (NYSE:BRK.A)

Disclosure: None



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