Warren Buffett Stocks Trading At 52 Week Lows Part 2

alexg — Thu, 03 Jul 2008 23:15:08 +0000

This is the second part on what stocks I am looking at. Part 1 dealt with stocks in the DJIA trading at or near 52 week lows. Next, I will look at stocks Warren Buffett or Berkshire Hathaway has bought according to Gurufocus.com.

Although studies have shown that following Buffett into stocks has been a good idea, I highly do not recommend following ANY guru into a stock. For example, think about the number of people who blindly followed Mohnish Pabrai or Martin Whitman in the last year. Plus, digging into a company’s 10-K will help anyone looking into a company get a better picture about the company and where its heading. Personally, I have followed the Oracle into a couple of holdings only after checking out the companies story. Finally, when it comes to pharma’s, Warren Buffett has stated he recommends buying a basket of them.

Kraft (KFT)- This one seems to be the one he is buying the most

Wells Fargo (WFC) – High Quality Bank

US Bank (USB) – Another high quality bank with great management

WellPoint (WLP)- Along with UNH , huge cash flow producers

UnitedHealth Group (UNH) – ^

Ingersoll-Rand (IR)- Also appears on Magic Formula screen

CarMax (KMX)- Haven’t looked into story

Glaxosmithkline (GSK)- Buy as basket

WABCO Holdings (WBC)- Have no idea

Bank of America (BAC)-

Sanofi-Aventis (SNY)- basket

US Gypsum (USG)- Moat will expand as competetors struggle with downturn

Lowes (LOW)- Will recover with economy

Also, there are several companies that Gurufocus does not list. I am guessing this is due to Warren Buffett purchasing the securities before GF was established. From the top of my head….

Moody’s (MCO)

American Express (AXP)

Coca-Cola (KO)

Proctor and Gamble (PG)

Disclaimer: I own PG and USB, I sold out of my holding in UNH a week ago.

Bruce Berkowitz On Wealthtrack is Weeks Top Value Investing Story

alexg — Sat, 14 Jun 2008 17:09:04 +0000

Instead of posting the week’s top value investing news, this week I plan to switch it up a bit. I will be posting my favorite post of the week. This week, my favorite news had to be Bruce Berkowitz on Consuelo Mack’s Wealthtrack.
Berkowitz is trimming his holdings in energy and is loading up on health care companies like Well Care Health (WCG). This came as no surprise as I have stated crude has had a nice run up, while health care stocks have been beaten down to levels not seen in quite a while. The two big stocks in the health care group United Health (UNH) and Wellpoint (WLP), seem to be getting the most attention from Gurus.Below is a small list of Gurus who have recently added to WLP and UNH. Data taken from Gurufocus.com

* Warren Buffett added 400,000 shares to UNH or an increase of 6%
* Bruce Berkowitz has 6% of portfolio in WLP or 11.015 million shares
* Seth Klarman has 11.6% of portfolio in WLP or 4.45 million shares

In addition, Morningstar.com recently mentioned they have estimated UnitedHealth’s fair value to be a “conservative” $60, providing a 50% margin of safety at current levels. I am pretty confident the margin of safety is the same for Wellpoint as both stocks have been equally beaten down with several gurus establishing big positions.

Contrarian Value Investing » UNH

Warren Buffett Stocks Trading At 52 Week Lows Part 2

Bruce Berkowitz On Wealthtrack is Weeks Top Value Investing Story