Cisco Systems, Inc. (CSCO), Microsoft Corporation (MSFT): One Prominent Investor Is Backing

At number four is Grupo Televisa SAB (ADR) (NYSE:TV).  Of the 450 hedge funds followed by Insider Monkey, First Eagle is the second largest holder of stock in the Mexican broadcaster, with 28.4 million shares at a value of $755 million.  Given the diversity of Grupo Televisa SAB (ADR) (NYSE:TV) in various Spanish-speaking media assets, the company enjoys a competitive advantage over other potential challengers.  As a result, its trailing price-to-earnings ratio of 1.6x compares very favorably to the sector average of 22.4x.

Last but certainly not least is Microsoft Corporation (NASDAQ:MSFT). The technology giant recently announced that it would end support for the Windows XP operating system as users have been transitioning to the new touch-screen Windows 8.  Unfortunately, Windows 8 is only running on 3.2% of all PCs. As users begin moving away from the PC and towards smartphones and tablets, Microsoft Corporation (NASDAQ:MSFT) is beginning to look like a dinosaur in the lightning-fast world of mobile computing.  It doesn’t help that Vista was a major disappointment and Windows 7 came at a time when consumers were strapped for cash at the height of the recession.  Adding insult to injury for Microsoft Corporation (NASDAQ:MSFT), recent earnings show a 5% gain in revenue, but a 12% increase in COGS, which caused a drop in the bottom line of 26% from 2011.

First Eagle’s bottom-up, fundamental approach to investing explains why the fund is invested in some of the leaders in the entertainment and technology sector. From Cisco to Grupo Televisa, each stock is fairly well insulated from any sector-wide shifts that could hammer smaller, less established companies. For a complete look at Jean-Marie Eveillard and First Eagle’s favorite stocks, continue reading here, on Insider Monkey.

Disclosure: none