Gabelli’s top pick was DirecTV (NYSE:DTV), with the 13F disclosing a position of 4.8 million shares. At a market capitalization of $31 billion, DirecTV currently trades at 13 times trailing earnings. Wall Street analysts expect moderate earnings growth this year and so the current-year P/E multiple is 10; continued growth estimates place the five-year PEG ratio at 0.7. While we wouldn’t take analyst estimates at face value these metrics are good enough to make the company worth a look in our view. Warren Buffett likes DirecTV; Berkshire Hathaway had over $1.5 billion invested in at as of the end of September (see Buffett’s stock picks).
The billionaire also liked American Express Company (NYSE:AXP), reporting ownership of 3.7 million shares. American Express is also a Buffett favorite, and billionaire Ken Fisher’s Fisher Asset Management is a major shareholder as well (find Fisher’s favorite stocks). The company’s earnings were down sharply last quarter compared to the fourth quarter of 2011 on lower margins. At a trailing P/E of 16 we don’t think that American Express is particularly attractive given its recent struggles, and despite the impressive roster of investors we would avoid it.
See three more stocks Gabelli liked:
