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Five Consumer Durables Stocks Billionaires Love

#3. Goodyear Tire & Rubber Co (NASDAQ:GT)

– Billionaires with long positions as of March 31: 8

– Aggregate value of billionaires’ holdings as of March 31: $440.75 Million

Goodyear Tire & Rubber Co (NASDAQ:GT) received some love from billionaire money managers during the January-to-March period, with the number of billionaires from our system with equity investments in the company jumping to eight from five quarter-over-quarter. Correspondingly, the dollar value of those investments increased by 3% sequentially to $440.75 million, partially owing to a 1% gain in the value of GT shares. The shares of the well-known manufacturer of tires have declined 17% so far in 2016, but the stock may recover in the months ahead should gasoline prices remain at relatively low levels. After all, lower gasoline prices should result in more driving and additional wear and tear on tires, which would translate into higher top-line figures for the company. Goodyear Tire & Rubber posted net sales of $3.69 billion for the first quarter of 2016, down from $4.02 billion reported a year ago. The decrease reflects currency exchange headwinds, the deconsolidation of its Venezuelan subsidiary, as well as a decline in price and product mix. Richard McGuire’s Marcato Capital Management cut its stake in Goodyear Tire & Rubber Co (NASDAQ:GT) by 32% during the March quarter to 4.87 million shares.

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– Billionaires with long positions as of March 31: 8

– Aggregate value of billionaires’ holdings as of March 31: $385.24 Million

There were eight billionaire money managers from our system with stakes in AMETEK Inc. (NYSE:AME) at the end of the March quarter, as compared with only one registered at the end of the previous quarter. The aggregate value of those stakes rose to $385.24 million from $138.58 million quarter-over-quarter even though Ametek shares lost nearly 7% of their value during the first quarter. Ametek, which produces various electromechanical devices and electric instruments, has seen its market capitalization drop by 11% since the beginning of 2016. In late April, analysts at BMO Capital Markets lowered the price target on Ametek to $58 from $60 and reiterated their ‘Outperform’ rating on the stock, saying that sales weakness in the company’s oil and gas, and metals businesses “forged a 2016 guidance reduction”. The shares of the electronic components manufacturer are changing hands at around 17.6-times expected earnings, slightly above the forward P/E multiple of 17.3 for the consumer discretionary sector. Malcolm Fairbairn’s Ascend Capital acquired a new stake of 450,000 shares of AMETEK Inc. (NYSE:AME) during the first quarter.

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#1. Mohawk Industries Inc. (NYSE:MHK)

– Billionaires with long positions as of March 31: 10

– Aggregate value of billionaires’ holdings as of March 31: $1.11 Billion

Mohawk Industries Inc. (NYSE:MHK) also received more attention from the pool of money managers with ten-figure fortunes during the first three months of 2016, as the number of billionaires with equity investments in the company climbed to ten from eight quarter-over-quarter. However, the overall value of those investments fell by 6% quarter-over-quarter to $1.11 billion despite a 1% gain in the value of Mohawk shares, so some billionaires were actually trimming their exposure to the company during the March quarter. The shares of the flooring manufacturing company for residential and commercial customers have gained a little less than 2% since the beginning of the year. Mohawk Industries’ top line for the three months that ended April 2 grew to $2.17 billion from $1.88 billion, mainly due to higher sales volume from acquisitions and higher legacy sales. Dan Loeb’s Third Point LLC was the owner of exactly 2.00 million shares of Mohawk Industries Inc. (NYSE:MHK) at the end of the March quarter.

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