Economy Warren Buffett buys Kroger, Biogen in the fourth quarter

Warren Buffett buys Kroger, Biogen in the fourth quarter

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<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Warren Buffett (trades. portfolioThe $ 486 billion conglomerate of Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B) announced its fourth-quarter 2019 equity portfolio and new positions in The Kroger Co. (NYSE: KR ), Biogen Inc. (NASDAQ: BIIB), the SPDR S & P 500 (SPY) and the Vanguard S & P 500 (VOO). “Data-reactid =” 11 “> Warren Buffett (Trades, Portfolio) The $ 486 billion conglomerate of Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B) announced its equity portfolio for the fourth on Friday Quarter 2019 and listed new positions in The Kroger Co. (NYSE: KR), Biogen Inc. (NASDAQ: BIIB), the SPDR S & P 500 (SPY) and the Vanguard S & P 500 (VOO).

With a record $ 128 billion in shares, the renowned guru and his two portfolio managers Ted Weschler and Todd Combs also have the conglomerate’s holdings in Occidental Petroleum Corp. (NYSE: OXY), Suncor Energy Inc. (NYSE: SU) increased), General Motors Co. (NYSE: GM) and RH (NYSE: RH).

Long-term investors also reduced their positions in Wells Fargo & Co. (NYSE: WFC), Goldman Sachs Group Inc. (NYSE: GS), The Travelers Companies Inc. (TRV), Apple Inc. (AAPL) and Phillips 66 (PSX ), Bank of America Corp. (BAC), American Airlines Group Inc. (AAL) and Bank of New York Mellon Corp. (BK).

The $ 242.05 billion equity portfolio consisted of 52 stocks at the end of the fourth quarter. Almost half of the portfolio, 43.32%, was invested in financial services stocks, while the technology sector accounted for 31% and the defensive consumer sector 14.26%.

75330cdbb7cba7f23b84b3d4a14edef7.png

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At the end of the quarter, Buffett’s five largest holdings, which made up more than half of the portfolio, were Apple, Bank of America, Coca-Cola Co. (KO), American Express Co. (AXP), and Wells Fargo.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Kroger“data-reactid =” 35 “>Kroger

Buffett invested in 18.9 million Kroger shares and dedicated 0.23% of the equity portfolio to the investment. The stock traded at an average price of $ 26.57 per share for the quarter.

The Cincinnati-based grocery chain has a market cap of $ 22.52 billion. The shares traded on Friday at 14.38 price-earnings ratio, 2.56 price-book ratio and 0.19 price-to-sales ratio at $ 28.23.

The Peter Lynch chart shows that the stock is trading slightly below its fair value, indicating that it is undervalued. Although the price-performance ratio and the price are close to a yearly high, the GuruFocus rating rank also implies an undervaluation.

7305d0a94b7fdc4370b3cc890f092f36.png7305d0a94b7fdc4370b3cc890f092f36.png

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GuruFocus rated Kroger’s financial strength as 5 out of 10 due to poor interest coverage and a low cash debt ratio of 0.03. However, the Altman Z-Score of 3.78 shows that the company has a good financial reputation.

The profitability of the company was rated 8 out of 10 despite the decreasing operating margin. Kroger is also backed by returns that outperform at least half of its competitors and a Piotroski F score of 6, which means business conditions are stable. The business predictability rank of five out of five stars is being observed due to a slowdown in revenue growth per share over the past 12 months. According to GuruFocus, companies with this rank typically have an average increase in their shares of 12.1% per year over a period of 10 years.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "With his purchase of 2.37% of the outstanding Kroger shares Buffett is now its largest guru shareholder. Jim Simons (tradesRenaissance Technologies, Pioneer Investments (trades, portfolio), Jeff Auxier (trades, portfolio), PRIMECAP Management (trades, portfolio), Lee Ainslie (trades, portfolio), Paul Tudor Jones (trades, portfolio), Joel Greenblatt (trades, portfolio) ), Ken Fisher (trades, portfolio) and Richard Snow (trades, portfolio) also have positions in the stock. “Data-reactid =” 61 “> With his purchase of 2.37% of the outstanding Kroger shares, Buffett Jim Simons (trades, portfolio), Renaissance Technologies, Pioneer Investments (trades, portfolio), Jeff Auxier (trades, portfolio) , PRIMECAP Management (trades, portfolio), Lee Ainslie (trades, portfolio), Paul Tudor Jones (trades, portfolio), Joel Greenblatt (trades, portfolio), Ken Fisher (trades, portfolio) and Richard Snow (trades, portfolio) also positions in the share.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Biogen“data-reactid =” 62 “>Biogen

The Omaha Oracle took 648,447 Biogen shares and allocated 0.08% of the stock portfolio to the holding. During the quarter, the stock traded at an average price of $ 279.04 per share.

The biotech company, headquartered in Cambridge, Massachusetts, has a market cap of $ 57.96 billion. The shares were trading around $ 333 on Friday at a price-earnings ratio of 10.56, a price-book ratio of 4.34 and a price-to-earnings ratio of $ 4.33.

According to the Peter Lynch chart, the stock is undervalued. The rating of 9 out of 10 also indicates an undervaluation.

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Biogen’s financial strength was rated 6 out of 10 by GuruFocus, which is due to comfortable interest coverage and a robust Piotroski F-Score of 4.93.

The company’s profitability was rated 10 out of 10 due to growing margins and strong returns that surpass the majority of industry peers. Biogen is also supported by a moderate Piotroski F score of 6. Due to the constant growth in profits and sales, Biogen has a five-star rank for the predictability of companies.

PRIMECAP is the largest guru shareholder in Biogen with an 8.73% stake. Other top guru investors are Simons’ company, the Vanguard Health Care Fund (trades, portfolio), Hotchkis & Wiley, Pionier, Greenblatt, Fisher, Steven Cohen (trades, portfolio), Jones, Snow, Richard Pzena (trades, portfolio) ), Jeremy Grantham (Trades, Portfolio) and Auxier.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "SPDR S & amp; P 500“data-reactid =” 93 “>SPDR S & P 500

The guru bought 39,400 shares in the exchange-traded fund, giving him 0.01% of the equity portfolio. The shares were traded at an average price of $ 308.48 each in the quarter.

The ETF, which tracks the performance of the S&P 500 stock index, has a market cap of $ 323.7 billion. The units traded on Friday with a price-earnings ratio of 20.58 and a price-book ratio of 3.25 at $ 337.60.

The 14-day relative strength index of 65.5 indicates that it is nearing the overbought level.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Vanguard S & amp; P 500“data-reactid =” 97 “>Avant-garde S&P 500

The renowned investor bought 43,000 ETF shares, which affected the equity portfolio by 0.01%. The units were traded at an average price of $ 283.37 each in the quarter.

The ETF, which tracks the investment performance of the S & P 500 Indes, has a market cap of $ 144.9 billion. The units traded on Friday with a price-earnings ratio of 19.82 and a price-book ratio of 3.19 at USD 310.28.

The 14-day relative strength index of 65.6 indicates that it is nearing the overbought level.

The full Buffett portfolio can be found here.

Disclosure: No positions.

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<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Not a premium member of GuruFocus? Sign up for one Free 7-day trial here,“data-reactid =” 109 “>Not a premium member of GuruFocus? Sign up for one Free 7-day trial here,

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This article was first published on guru Focus,
“data-reactid =” 110 “> This article first appeared on GuruFocus.

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