Google Inc (NASDAQ:GOOG): The most recent 13F shows a near doubling of Druckenmiller’s stake in Google Inc (NASDAQ:GOOG) to about 140,000 shares. Last quarter Google’s earnings were up 7% versus a year earlier despite the acquisition of Motorola Mobility Holdings, which was not particularly positive for the bottom line in the short term. As Google continues to integrate the company, and as search growth continues to be strong, many investors have found it appealing. Wall Street analyst estimates imply a forward P/E of 15. Billionaire Stephen Mandel’s Lone Pine Capital owned over 1 million shares of Google at the end of September.
Selling oil majors is certainly the right move if Druckenmiller thinks oil prices are on their way down, though we like their prices in the current market. We think AIG and airlines are good value plays, though we might prefer one of US Airways’ competitors; peers would benefit from industry consolidation without the risks of integrating American. In the case of Google, we think investors are better served by waiting for more results from the company.
The article Billionaire Stanley Druckenmiller’s Latest Stock Picks originally appeared on Fool.com and is written by Jake Mann.
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