In this article, we discuss 5 tech stocks Warren Buffett is holding despite selloff. If you want to see more tech stocks held by the billionaire amid the broader market selloff, click Warren Buffett Is Holding These 10 Tech Stocks Despite Selloff.
5. Liberty Latin America Ltd. (NASDAQ:LILA)
Number of Hedge Fund Holders: 16
1-Month Decline in Share Price as of May 17: 12.28%
Liberty Latin America Ltd. (NASDAQ:LILA) offers fixed, mobile, and subsea telecommunications services, operating through C&W Caribbean and Networks, C&W Panama, Liberty Puerto Rico, VTR, and Costa Rica segments. Liberty Latin America Ltd. (NASDAQ:LILA) shares have declined 12.28% in the last month. On May 4, the company posted Q1 cash and cash equivalents of $923.4 million. The $1.21 billion revenue was up 4.3% year-over-year, but missed analysts’ estimates by $40 million.
Securities filings for Q1 2022 reveal that Warren Buffett’s Berkshire Hathaway owned 2.63 million shares of Liberty Latin America Ltd. (NASDAQ:LILA), worth $25.5 million. The billionaire did not change his stake in the company despite the broader tech selloff.
According to Insider Monkey’s Q4 data, 16 hedge funds were long Liberty Latin America Ltd. (NASDAQ:LILA), up from 14 funds in the preceding quarter. William Crowley, William Harker, and Stephen Blass’ Ashe Capital is a significant position holder in the company, with 12.3 million shares worth $118.8 million.
Here is what Steel City Capital has to say about Liberty Latin America Ltd. (NASDAQ:LILA) in its Q1 2022 investor letter:
“Liberty Latin America (Nasdaq: LILA): LILA is the Rodney Dangerfield of the John Malone empire – it don’t get no respect. The company is a leading telecommunications provider (broadband, television, wireless) operating in over 20 countries across Latin America and the Caribbean. Shares have had a tough go since spinning out from Liberty Global in 2018. At separation, the valuation was rich, but a lot of so-called value investors rushed in anyways because they thought any investment opportunity that checked the boxes of “spin-off” and “John Malone” had to be a money-maker. Wrong. Add to this some pretty ugly financial performance brought about by Hurricane Maria in Puerto Rico and a cumbersome (but not all the complicated) capital structure, and it’s easy to see why shares have performed so poorly. But as you’ve no doubt read in prior quarters’ letters, I’m a big believer in the notion that past performance is not indicative of future results. Today’s market cap is ~$2.1 billion (and shrinking via an ongoing buyback program) and I can very easily underwrite free cash flow north of $400 million in 2024. This reflects a P/FCF multiple of 5.25x / a free cash flow yield of nearly 20%. This is exceptionally cheap for a company with recurring cash flow streams and a very long opportunity to grow via penetration in the years to come.”
