Goldman Sachs Group, Inc. (GS), Starbucks Corporation (SBUX): Non-Wall Street Guru Betting On These Stocks

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At number four is R. G. Barry Corp. (NASDAQ:DFZ).  The maker of Dearfoams slippers has a price/earning ratio of 12x versus the industry average of 13.5x and has consistent revenue growth, coupled with a 93% increase in net income from 2011.  Recently, however, the maker of competitor slippers, Isotoner, has asked a federal judge in Ohio to order R. G. Barry Corp. (NASDAQ:DFZ) to cease selling the slippers that look suspiciously like Isotoners, especially to JC Penney which recently switched from Isotoner to Dearfoams.   Year over year, DFZ is up 15% to $13.45 and shows little sign of being undermined by this impending lawsuit.

Lastly, there is Wells Fargo & Co (NYSE:WFC).  With 457,139 shares, Pacifica is the third largest holder of Wells Fargo & Co (NYSE:WFC), followed by Theleme Partners and Berkshire Hathaway.  Of the four major banking stocks — Bank of America Corp (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM) and Citigroup (NYSE:C) — WFC is considered the most financially sound and will continue to benefit from the recovery in the housing market.  During the financial crisis in 2008, Wells Fargo acquired Wachovia and subsequently doubled in size.  But despite its size, WFC has maintained its profitability and cost-effective business model that has contributed to growth in the bottom line to $19bln in 2012, up 19% from 2011.

More than three-quarters of Pacifica’s positions are in the top five stocks discussed above which explains why Steve Leonard is known for making “concentrated bets”–a strategy we’ve seen in other funds such as Monarch Alternative Capital.  But since the top five are some of the most stable and least risky companies in their sector, the strategy could be beneficial for investors in the fund, or for those who want to mimic the fund’s strategy without the million dollar investment.  To see the rest of the positions in Pacifica Capital Investments, continue reading here on Insider Monkey.

Disclosure: none

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