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Top Stocks Bought By Major Investment Gurus

 February 12, 2013 04:32 PM
 


I often take a look at the activities of well-known investment guru's. Sure, hedge fund managers and activists are active investors who want to change something on the business model in order to push the current stock price. Ackman or Einhorn are such persons. I don't follow them in detail but they are part of the screening results and due to their big influence, it makes sense to look at what they do. 

Investment gurus are asset or fund managers with big amounts of cash under management. They became popular by big returns and spectacular investment strategies. I talk about investors like George Soros and Warren Buffett. They all have one thing in common: The average return beats the market and if they invest, the market follows.

[Related -Microsoft Corporation (MSFT) Earnings Preview: What To Watch In Q2 Results?]

I always screen picks from Warren Buffett. He has a solid investment decision process and selects stocks I also like. Sometimes he gives me new ideas about long-term investments or about growth opportunities which I haven't considered for the time being.  

In order to find the hottest stocks at the investment premier league, I made a screen of the biggest stock buys from 49 super investors over the recent six month and ranked them in my 100 best guru buy list. They all combined bought 449 stocks within the past half year.

The top stocks are now Microsoft and AIG International. Microsoft was purchased by 9 stock market professionals and AIG by 8. Exactly 60 percent of the top ten buys have a relationship to the technology sector. Investors still love this field because of the high growth potential and strong cash flows. But technology stocks are no big dividend payer.

[Related -Intel Corporation (INTC) and 5 Other Stocks That Could Pop on Earnings This Week]

Here are the 3 most bought dividend stocks:

Microsoft (NASDAQ: MSFT) has a market capitalization of $230.77 billion. The company employs 94,000 people, generates revenue of $73.723 billion and has a net income of $16.978 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24.819 billion. The EBITDA margin is 33.67 percent (the operating margin is 29.92 percent and the net profit margin 23.03 percent).

Financial Analysis: The total debt represents 9.85 percent of the company's assets and the total debt in relation to the equity amounts to 18.00 percent. Due to the financial situation, a return on equity of 27.51 percent was realized. Twelve trailing months earnings per share reached a value of $1.82. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.11, the P/S ratio is 3.13 and the P/B ratio is finally 3.48. The dividend yield amounts to 3.34 percent and the beta ratio has a value of 0.94.

Schlumberger (NYSE: SLB) has a market capitalization of $105.03 billion. The company employs 118,000 people, generates revenue of $42.321 billion and has a net income of $5.468 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10.762 billion. The EBITDA margin is 25.43 percent (the operating margin is 16.99 percent and the net profit margin 12.92 percent).

Financial Analysis: The total debt represents 18.90 percent of the company's assets and the total debt in relation to the equity amounts to 33.47 percent. Due to the financial situation, a return on equity of 16.48 percent was realized. Twelve trailing months earnings per share reached a value of $4.06. Last fiscal year, the company paid $1.10 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.49, the P/S ratio is 2.48 and the P/B ratio is finally 3.02. The dividend yield amounts to 1.58 percent and the beta ratio has a value of 1.42.

Intel Corporation (NASDAQ: INTC) has a market capitalization of $104.50 billion. The company employs 104,700 people, generates revenue of $53.341 billion and has a net income of $11.005 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.160 billion. The EBITDA margin is 41.54 percent (the operating margin is 27.44 percent and the net profit margin 20.63 percent).

Financial Analysis: The total debt represents 15.94 percent of the company's assets and the total debt in relation to the equity amounts to 26.26 percent. Due to the financial situation, a return on equity of 22.66 percent was realized. Twelve trailing months earnings per share reached a value of $2.13. Last fiscal year, the company paid $0.87 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.85, the P/S ratio is 1.96 and the P/B ratio is finally 2.04. The dividend yield amounts to 4.29 percent and the beta ratio has a value of 1.01.

Take a closer look at the full table of stocks with biggest guru buys over the past six months. The average P/E ratio amounts to 18.56. Exactly 70 companies pay dividends of which three have a high yield. The average dividend yield amounts to 1.60 percent. P/S ratio is 2.81 and P/B ratio 6.68.

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