In this article, we take a look at the top 10 stocks to buy according to Guy Spier’s Aquamarine Capital Management.
Aquamarine Capital Management has a portfolio value of over $203 million as of the third quarter of 2021. The major chunk of its portfolio comprises investments in the financial sector. Guy Spier, the founder, and manager of the Aquamarine fund, follows the philosophy of value-investing.
Some of the prominent companies that Aquamarine Capital Management is invested in as of the third quarter include Mastercard Incorporated (NYSE:MA), Alibaba Group Holding Limited (NYSE:BABA), and Bank of America Corporation (NYSE:BAC).
Our Methodology
In this article we picked top 10 stocks from Aquamarine Capital’s third quarter portfolio.
Daily newspaper economy stock market chart
10. Alibaba Group Holding Limited (NYSE:BABA)
Aquamarine Capital Management’s Stake Value: $7 million
Percentage of Aquamarine Capital Management’s 13F Portfolio: 3.44%
Number of Hedge Fund Holders: 115
Alibaba Group Holding Limited is one of China’s largest corporations. It’s primary domain is e-commerce in both wholesale and retail.
Aquamarine Capital Management holds 47,500 shares in the corporation as of the third quarter of 2021. The hedge fund’s investment in the company accounts for 3.44% of its portfolio in the third quarter, down from 5.05% in the second quarter of 2021. Also, as of Q3’21, Fisher Asset Management is the leading stakeholder in Alibaba Holding Group Limited with over 14 million shares.
9. Seritage Growth Properties (NYSE:SRG)
Aquamarine Capital Management’s Stake Value: $7.4 million
Percentage of Aquamarine Capital Management’s 13F Portfolio: 3.63%
Number of Hedge Fund Holders: 10
Seritage Growth Properties (NYSE:SRG) is a US-based real estate company that is involved in development, ownership and selling of property across the country. Aquamarine Capital Management holds 500,000 shares in the company that makes up 3.63% of its portfolio.
8. Moody’s Corporation (NYSE:MCO)
Aquamarine Capital Management’s Stake Value: $9.5 million
Percentage of Aquamarine Capital Management’s 13F Portfolio: 4.7%
Number of Hedge Fund Holders: 58
Moody’s Corporation (NYSE:MCO) is an analytics company that provides insights, research, and analytics on debt instruments and securities like government or commercial bonds and mortgages.
Aquamarine Capital Management holds 27000 shares in the company as of the third quarter of 2021, up from only 6000 shares it held in the first quarter of 2016.
7. Berkshire Hathaway Inc. (NYSE:BRK-A)
Aquamarine Capital Management’s Stake Value: $12.3 million
Percentage of Aquamarine Capital Management’s 13F Portfolio: 6.05%
Number of Hedge Fund Holders: 106
Berkshire Hathaway Inc. (NYSE:BRK-A) is a US-based conglomerate that owns several companies. Some of these include Duracell, Shaw Industries, Forest River and Dairy Queen, among many others. Aquamarine Capital Management holds 30 class A shares in the corporation.
On November 7, Keefe Bruyette analyst Meyer Shields said that Berkshire Hathaway Inc. Q3 results missed “virtually across the board,” partly offset by lower than anticipated taxes and higher than anticipated share rebuying.
6. Micron Technology, Inc. (NASDAQ:MU)
Aquamarine Capital Management’s Stake Value: $14 million
Percentage of Aquamarine Capital Management’s 13F Portfolio: 6.95%
Number of Hedge Fund Holders: 63
Micron Technology, Inc. (NASDAQ:MU) is an American technology company based in Idaho. The company manufactures and distributes computer parts like RAMs, Solid State Drives, and USB memory drives. Aquamarine Capital Management holds 200,000 shares in the company while the leading stakeholder in the company in the third quarter of 2021 was Arrowstreet Capital with over 10 million shares.
On December 13, Evercore ISI analyst C.J. Muse increased the price target on Micron Technology, Inc. to $120 up from $100, and kept an ‘Outperform’ rating on the shares, which he opines are “structurally under-valued”.
5. Ferrari N.V. (NYSE:RACE)
Aquamarine Capital Management’s Stake Value: $16.7 million
Percentage of Aquamarine Capital Management’s 13F Portfolio: 8.21%
Number of Hedge Fund Holders: 27
Ferrari N.V. (NYSE:RACE) is the holding company for Ferrari S.p.A, which designs manufactures, and distributes sports and supercars. It is one of the most famous companies in the sports cars industry.
Aquamarine capital management holds 80,000 shares in the company. On December 9, Kepler Cheuvreux analyst Thomas Besson downgraded Ferrari to a ‘Reduce’ rating with a price target of EUR 220, up from EUR 210.
While Besson remains convinced that the company’s shares are attractive in the long run, the analyst anticipates profit-taking in the coming months after a large-scale outperformance over the past six months.
4. Mastercard Incorporated (NYSE:MA)
Aquamarine Capital Management’s Stake Value: $22.8 million
Percentage of Aquamarine Capital Management’s 13F Portfolio: 11.2%
Number of Hedge Fund Holders: 146
Mastercard Incorporated is a financial company that operates Mastercard service, a digital payment processor used virtually all across the world. It allows for the processing of digital transactions between the customer’s bank and merchant’s bank and thus, enables a huge percentage of online transactions. Aquamarine Capital Management holds 65,750 shares in the company.
3. Bank of America Corporation (NYSE:BAC)
Aquamarine Capital Management’s Stake Value: $32.5 million
Percentage of Aquamarine Capital Management’s 13F Portfolio: 15.97%
Number of Hedge Fund Holders: 72
Bank of America Corporation is a famous American finance, investment, and banking company headquartered in North Carolina. The company provides banking services, wealth management. On December 9, UBS analyst Erika Najarian assumed coverage of Bank of America Corporation with a ‘Buy’ rating and a price target of $64.
The analyst declared Bank of America as her top pick among the U.S. banks with large market capitalization.
2. American Express Company (NYSE:AXP)
Aquamarine Capital Management’s Stake Value: $35 million
Percentage of Aquamarine Capital Management’s 13F Portfolio: 17.24%
Number of Hedge Fund Holders: 57
American Express Company (NYSE:AXP) is another company providing payment card services. Aquamarine Capital Management has 210,000 shares in the company as of the third quarter of 2021.
1. Berkshire Hathaway Inc. (NYSE:BRK-B)
Aquamarine Capital Management’s Stake Value: $38.3 million
Percentage of Aquamarine Capital Management’s 13F Portfolio: 18.81%
Number of Hedge Fund Holders: 106
Berkshire Hathaway Inc. (NYSE:BRK-B), as mentioned earlier, is a huge conglomerate controlling several companies. The company provides Class-A and Class-B shares. Aquamarine Capital Management is invested in both classes of shares with its most significant investment in Class-B shares at 140,600 shares in the third quarter of 2021.
You can also take a peek at 10 High Dividend Stocks for 2022 and Billionaire David Tepper is Loading Up on These 10 Stocks.
Follow Insider Monkey on Twitter
Suggested articles:
- Top 10 Stock Picks of Wen Han Li’s Andar Capital
- Top 10 Stock Picks of Wang Zhang’s Keywise Capital
- Top 10 Stock Picks of Leon Shaulov’s Maplelane Capital
This article is originally published at Insider Monkey.
