Ken Fisher’s 5 New Purchases/Additions

In this article, we discuss Ken Fisher’s 5 new purchases/additions. If you want to read the investment philosophy of Ken Fisher and the detailed analysis of Fisher Asset Management, go directly to Ken Fisher’s 15 New Purchases/Additions.

5. Deere & Company (NYSE:DE)

Percentage Increase in Stake in Q4: 20%

Deere & Company (NYSE:DE) produces and distributes machinery for forestry, agriculture, construction, and turf management. Deere stock has increased 5.89% over the past year, outperforming the S&P 500’s performance of -6.62%. Based on 12 buy ratings, 6 hold ratings, and 0 sell ratings, Deere has a consensus rating of ‘Moderate Buy.’

Ken Fisher first invested in Deere & Company (NYSE:DE) in the fourth quarter of 2010. Since then, Fisher’s Deere stake has been on a roller coaster ride. In the fourth quarter, he bought roughly 138,386 shares of Deere & Company (NYSE:DE) stock, increasing his stake by about 20% to $360.56 million.

Out of the hedge funds being tracked by Insider Monkey, Bill & Melinda Gates Foundation Trust is a leading shareholder of Deere & Company (NYSE:DE) with 3.92 million shares.

Harding Loevner made the following comment about Deere & Company (NYSE:DE) in its Q3 2022 investor letter:

“Deere & Company (NYSE:DE), the world’s largest manufacturer of agricultural equipment, reported fiscal third-quarter growth in revenues and earnings of 22% and 16%, respectively. These results reaffirmed Deere’s pricing power, which enabled the company to overcome rising raw material costs and a host of supply chain challenges….” (Click here to read the full text)

4. Intuit Inc. (NASDAQ:INTU)

Percentage Increase in Stake in Q4: 24%

Intuit Inc. (NASDAQ:INTU) offers software and services for financial management and compliance to individuals, small businesses, independent contractors, and accounting professionals in the United States, Canada, and other countries. Intuit, which presently has more than 100 clients globally, had revenue growth of 11% to 32% during the previous seven years and just two minor YoY sales declines over the last 25 years.

In the fourth quarter, Ken Fisher boosted his stake in Intuit Inc. (NASDAQ:INTU) by 462,468 shares, increasing his total stake size by 24%. He first invested in Intuit Inc. in the fourth quarter of 2017. The stock has struggled in the past six months, dropping more than 14%. However, Ken Fisher still holds more than 2.41 million shares of Intuit Inc. (NASDAQ:INTU), worth more than $939.10 million. 

Intuit Inc. (NASDAQ:INTU) has a consensus rating of ‘Strong Buy’ which is based on 17 buy ratings, 0 hold ratings and 1 sell rating. Durable Capital Partners is the most significant shareholder of Intuit Inc. (NASDAQ:INTU), with 1.75 million shares worth $681.66 billion.

Fundsmith, an investment management company, mentioned Intuit Inc. (NASDAQ:INTU) in its 2022 yearly investor letter. Here is what the fund said:

“Take the example of Microsoft and Intuit Inc. (NASDAQ:INTU). Microsoft shares are currently being valued at a P/E ratio of 25.0 times the consensus EPS estimate for the fiscal year ending June 2023. Meanwhile, Intuit is being valued at 28.4 times the non-GAAP consensus estimate for the fiscal year ending July 2023. Many investors and analysts may accept that Intuit is trading at a higher multiple given expectations of greater growth potential. However, Intuit removes share-based compensation from their non-GAAP EPS whereas Microsoft does not. Given that Intuit’s GAAP EPS guidance for the year ending July 31 2023 is $6.92–$7.22, its non-GAAP guidance is $13.59–$13.89, and the consensus estimate for 2023 EPS is at $13.69, it seems clear that most sell-side analysts are accepting the company’s non-GAAP adjustments, which includes the removal of some $1.8bn of share-based compensation, in their estimates. If we include the impact of share-based compensation in Intuit’s 2023 EPS to make a more apples-to-apples comparison with Microsoft based upon GAAP EPS, Intuit’s 2023 EPS would be closer to $9, meaning that the shares would be trading at a multiple of about 43 times. I think investors and analysts may find a premium of 14% for Intuit over Microsoft (28.4 times versus 25.0 times) to be reasonable. I’m not so sure they are fully aware that Intuit shares are actually trading at a premium of 73% if share-based compensation is treated in the same manner between the two companies….” (Click here to read the full text)

3. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Percentage Increase in Stake in Q4: 34%

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor firm. On February 14, Benchmark analyst Cody Acree boosted his price target on AMD to $103 from $93 and maintained a ‘Buy’ rating on the stock after speaking with Ruth Cotter, AMD’s Senior VP of Marketing. Cotter provided significant details about AMD’s anticipated long-term market share increase in the client computing, data centre, and embedded processor sectors.

Ken Griffin’s Citadel Investment Group held the leading position in Advanced Micro Devices, Inc. (NASDAQ:AMD). Advanced Micro Devices, Inc. (NASDAQ:AMD) shares have offered investors more than 22.62% in returns year-to-date as of February 20.

In the fourth quarter, Fisher Asset Management bought 6.49 million shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) stock, increasing its remaining stake by about 34%. At the end of the quarter, the hedge fund held more than 25.89 million shares of the company, worth about $1.68 billion. Advanced Micro Devices, Inc. (NASDAQ:AMD) has featured on Fisher Asset Management’s portfolio since the fourth quarter of 2010.

Here is what Baron Funds said about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2022 investor letter:

“Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global fabless semiconductor company focusing on high-performance computing technology, software, and products. AMD designs leading high-performance central and graphics processing units (known as CPUs and GPUs) and integrates them with hardware and software to build differentiated solutions for customers.…” (Click here to read more)

2. Crown Castle Inc. (NYSE:CCI)

Percentage Increase in Stake in Q4: 54%

Crown Castle Inc. (NYSE:CCI), a communications infrastructure REIT, owns, manages, and rents over 40,000 cell towers and about 80,000 route miles of fibre in every major US market to enable small cells and fibre solutions.

Fisher Asset Management elevated its position in Crown Castle Inc. (NYSE:CCI) by 54% in Q4 2022, holding more than 4.62 million shares worth over $626.66 million. The stock accounts for 0.42% of the fund’s total 13F portfolio. Michael Larson’s Bill & Melinda Gates Foundation Trust is the company’s most significant stakeholder, with 1.42 million shares worth $192.62 billion.

On January 31, RBC Capital analyst Jonathan Atkin maintained an ‘Outperform’ rating and boosted his price objective on Crown Castle Inc. (NYSE:CCI) from $150 to $162. Tower site leasing revenue and small cell/fibre leasing income surpassing expectations contributed to the company’s “excellent” Q4 profits, the analyst informed investors in a research note.

In its fourth quarter 2022 investor letter, Cooper Investors mentioned Crown Castle Inc. (NYSE:CCI). Here is what the fund said:

“Given that we still really like towers as a defensive exposure to data growth we have recycled the capital from Vantage into Crown Castle Inc. (NYSE:CCI), a US-focused towers business with clear value latencies.…” (Click here to read the full text)

1. Block, Inc. (NYSE:SQ)

Percentage Increase in Stake in Q4: 149%

Block, Inc. (NYSE:SQ) was established in 2009 and offers businesses payment acquiring services and associated services. Additionally, the company unveiled the person-to-person payment network Cash App. Block, Inc. (NYSE:SQ) has businesses in the United Kingdom, Canada, Japan, and Australia; around 5% of its income comes from sources outside the United States. 

Block, Inc. (NYSE:SQ) shares have returned 10.11% to investors over the course of past month. Ahead of the company’s Q4 earnings, on January 23, Barclays analyst Ramsey El-Assal maintained an ‘Overweight’ rating on the shares and increased his price objective for Block, Inc. (NYSE:SQ) from $100 to $103. Block’s employment appears to have decreased significantly in Q4 according to the analyst’s research report to investors, perhaps indicating the company’s more aggressive approach to profitability.

Fisher Asset Management also strengthened its position in Block, Inc. (NYSE:SQ) by buying 6.79 million additional shares. This makes its stake in Block, Inc. (NYSE:SQ) total 11.36 million shares worth $713.86 million. ARK Investment Management is the company’s largest shareholder, with shares worth $565.77 billion.

Baron Funds, an asset management firm, mentioned Block, Inc. (NYSE:SQ) in its Q2 2022 investor letter. Here is what the fund said:

“Block, Inc. provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to mixed quarterly results with more modest growth in the Seller business offsetting strength in Cash App. While the integration of recently acquired Afterpay is progressing well and credit metrics remain healthy, the buy-now-pay-later business slowed due to greater competitive intensity. We continue to own the stock due to Block’s long runway for growth, sustainable competitive advantages, and unique corporate culture.”

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