Tuesday, June 2, 2015

Which stocks famous money managers hold?

Dataroma tracks famous value oriented money managers that they call "superinvestors". Among them are legendary investors like Warren Buffett.

I regularly take a look what they hold, what they have bought and what let go.

An interesting question with regards to these money managers is that given they park billions, how far they deviate from index investing?

Top 20 by ownership count was as follows:

I included two more stocks into the list since Google and Berkshire is there twice with different classes of shares.

Obviously they have to select big corporations because of the amount of money they need to put into a single position.

However, the companies are not in the order that you would expect in terms of market cap. The order will change a bit if you look at amount of aggregate money in these positions, but the conclusion does not. They are still not in the order of market cap.

There are three companies with market cap below 100 billion USD: Liberty Global Inc., AIG and American Express. Very many big names with much larger market cap are not in the list: Wal-Mart, Facebook, Pfizer, P&G, Verizon, Amazon, Chevron etc.

To me it seems that atleast these money managers as aggregate deviate what could be called "index investing".

Overall, the "superinvestors" seem to prefer technology and financial sectors. Also, they clearly prefer corporations based in USA rather than elsewhere in the world - even if those would be listed in the NYSE or NASDAQ.


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