Summary
- Communication Charter
CHTR
MKL
HPQ
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Heading into the end of the third quarter, a few Warren Buffett (Trades, Portfolio) shares are trading near 52-week lows.
As the market continues to grapple with rising inflation and potential hikes in interest rates, many stocks in Berkshire Hathaway
BRK.B
Similarly, after posting a total return of 28.7% for 2021, the S&P 500 is down about 18% so far this year.
Year-to-date performance of the S&P 500 Index.
While Buffett, considered by many as one of the greatest investors ever, has mostly sat on his hands in the months following the coronavirus crash despite the plethora of valuable opportunities available, he has been a more active buyer in recent months, having established a slew of Stakes in Occidental Petroleum
OXY
Regarding price, the billionaire investor seeks a margin of safety between the company’s stock price and its real value. In addition, he advocates buying “awesome” companies at “fair” prices rather than fair companies at great prices. Buffett also tends to favor high-quality companies that he understands and have strong moats.
The 13F filing for the second quarter showed that his stock portfolio consisted of 47 shares as of the three months ended June 30, which were valued at $300.13 billion. Buffett’s holdings have posted a mixed performance so far in 2022, with 14 of the top 20 positions slipping.
An overview of the performance of Buffett's top 20 holdings since the start of the year.
As of Thursday, some of Buffett's shares that have crashed near their lowest prices in a year included Charter Communications Inc. (CHTR, Financial), Markel Corp. (MKL, Financial), HP, Celanese Corp (CE, Financial) and US Bancorp (USB, Financial).
Investors should be aware that 13F filings do not give a complete picture of a company's holdings because the reports only include its positions in US stocks and US depository receipts, but they can still provide valuable information. Furthermore, the reports only reflect deals and holdings as of the latest portfolio deposit date, which may or may not be held by the reporting company today or even when this article was published.
Communication Charter
Shares of Charter Communications (CHTR, Financial) have fallen 50% over the past year. The stock is currently up 1.92% from its yearly low of $377.92.
Charter Communications performance over the past year.
The Oracle of Omaha owns 3.83 million shares in the company, which represents 0.60% of its stock portfolio.
An overview of the history of Buffett Holdings for Charter Communications.
The Stanford, Connecticut-based telecommunications and media company has a market capitalization of $60.87 billion. Its shares were trading around $378.04 Thursday with a price-earnings ratio of 12.17, a price-to-book ratio of 6.15 and a price-to-sales ratio of 1.26.
GuruFocus rated Charter Communications' financial strength 3 out of 10. Due to the issuance of new long-term debt over the past several years, the interest coverage of the company is poor. The Altman Z-Score of 0.77 also warns that it may be at risk of bankruptcy. However, the return on invested capital overshadows the weighted average cost of capital, which means that value is created as the company grows.
The company's profitability fared better with a rating of 8 out of 10, driven by expanding operating margin, strong returns on equity, assets and capital that outperform more than half of its competitors and a high Piotroski F score of 7 out of 9, indicating healthy business conditions. Charter Communications also has a predictable rating of four out of five stars on the back of consistent earnings and revenue growth. According to GuruFocus Research, companies with this rank generate an average return of 9.8% annually over a 10-year period.
Among the educators investing in stocks, Dodge & Cox holds the largest stake with 4.21% of its outstanding shares. Frank Sands (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), Bill Nygren (Trades, Portfolio), Steven Romick (Trades, Portfolio) and PRIMECAP Management (Trades, Portfolio), among others, are also investing in Charter Communications .
Markel
Markel (MKL, Financial) shares are down about 2% over the past 12 months. The stock is currently up 2.82% from its yearly low of $1,162.
Markel's performance over the past year.
Buffett owns 467,611 shares of the company, reflecting 0.20% of his stock portfolio.
An overview of the history of Buffett's holding of Markle.
The insurance company, which is headquartered in Glen Allen, Virginia, has a market capitalization of $16.20 billion. Its shares were trading around $1,196.04 on Thursday with a price-earnings ratio of 680.69, a price-to-book ratio of 1.34 and a price-to-sales ratio of 1.50.
Markle's financial strength is rated 5 out of 10 by GuruFocus. As a result of the company issuing new long-term debt in recent years, its interest coverage is poor. It also struggles to create value because WACC outperforms ROIC.
The company's profitability scores a 7 out of 10 despite its underperforming margins and revenue versus the majority of its industry peers. Markel also has a moderate Piotroski F score of 5, which means conditions are typical for a stable company. Given the low rate of revenue growth per share over the past 12 months, a 2.5-star predictability rating is under review. GuruFocus found that companies with this rank return, on average, 7.3% annually.
With a holding of 3.46%, Buffett is Markel's largest shareholder. Billy Gifford (Trade, Portfolio), Chris Davis (Craft, Portfolio), Wallace Weitz (Craft, Portfolio), Jeremy Grantham (Craft, Portfolio), Stephen Cohen (Trade, Portfolio), Jim Simmons (Craft, Portfolio) “Era Technologies Renaissance and Arnold Van Den Berg (Craft, Portfolio), Tom Russo (Craft, Portfolio), Ray Dalio (Craft, Portfolio) and Murray Stahl (Craft, Portfolio) also have stock positions.
HP
Shares of HP (HPQ, Financial) are down about 3.4% over the past year. The stock is currently up 3.26% from its yearly low of $26.11.
HP's performance over the past year.
Al Muallem owns 104.5 million shares in the company, which represents 1.14% of his stock portfolio.
An overview of the history of Buffett's holdings for HP.
The California-based Palo Alto, which manufactures computers, printers, and related supplies, has a market capitalization of $27.11 billion. Its shares were trading around $26.95 on Thursday with a P/E ratio of 4.72 and a sales to price ratio of 0.44.
GuruFocus rated HP's financial strength 5 out of 10. Although the company has issued new long-term debt over the past several years, it is manageable due to adequate interest coverage. However, the Altman Z-Score of 2.44 warns that it is under some pressure. Value creation also occurs since ROIC has overtaken WACC.
The company's profitability has been better, with a rating of 8 out of 10. While operating margin is declining, HP's revenue is outperforming competitors. It also has a moderate Piotroski F score of 6 as well as a 1 star rating for prediction. GuruFocus data shows that companies with this rank return an average of 1.1% annually.
Buffett is HP's largest shareholder with a 10.10% stake. Other experts with notable collectibles include Dodge & Cox, Primecab and Grantham.
Celanese
Shares of Celanese (CE, Financial) have fallen nearly 30% over the past 12 months. The stock is currently trading 3.42% above its 52-week low of $104.74.
Celanese's performance over the past year.
The popular investor owns 9.15 million shares of the company, giving it 0.36% space in the stock portfolio.
An overview of Buffett's history in the Celanese decade.
The chemical company, headquartered in Irving, Texas, has a market capitalization of $11.73 billion. Its shares traded around $108.27 on Thursday with a price-earnings ratio of 6.05, a price-to-book ratio of 2.41 and a price-to-sales ratio of 1.24.
Celanese's financial strength is ranked 6 out of 10 by GuruFocus. Although new long-term debt has been issued in recent years, the interest coverage of the company is sufficient. Altman's high Z score of 3.66 also indicates that she is in good standing. Moreover, ROIC exceeds the cost of WACC, so value is created.
The company's profitability posted a rating of 8 out of 10, driven by expanding operating margin and returns that outperform the majority of its industry peers. Celanese is also supported by a high Piotroski F-Score, although a one-star predictability rating is under review.
Among the Celanese investor educators, Buffett holds the largest stake with 8.45% of its outstanding shares. Dodge & Cox, Simons Company, Dalio, Jeff Auxier (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio) and many other teachers have also been invested in the stock.
US Bancorp
US shares of Bancorp (USB, Financial) have fallen more than 20% over the past year. The shares are currently trading 4.13% above their yearly low of $43.74.
US Bancorp's performance over the past year.
Buffett owns 119.81 million shares, making it his ninth largest stake with a weight of 1.84%.
An overview of the history of Buffett's holdings of US Bancorp.
The Minneapolis-based holding company has a market capitalization of $67.62 billion. Its shares traded around $45.60 on Thursday with a price-earnings ratio of 10.46, a price-to-book ratio of 1.62 and a price-to-sales ratio of 2.92.
Bancorp's financial strength in the United States is ranked 4 out of 10 by GuruFocus, weighted by debt-related ratios that have underperformed compared to more than half of its industry.
The company's profitability has been better off with a rating of 6 out of 10. US Bancorp is backed by margins and returns above half of its competitors as well as a moderate Piotroski F score of 5. Although slowing in revenue growth per share has been recorded, the bank has a five-star rating. in predictability. GuruFocus says companies with this rank return an average of 12.1% annually.
With a stake of 8.06%, Buffett is the company's largest shareholder. Other notable investors include Davis, Grantham, First Eagle Investment (Trades, Portfolio), Barrow, Hanley, Mewhinney & Strauss, Mairs and Power (Trades, Portfolio), Yacktman Asset Management (Trading, Portfolio) and PRIMECAP.
Possible additional opportunities
Two other stocks in Buffett's portfolio that traded near 52-week lows on Thursday are Mondelez International.
MDLZ
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Disclosures
I/We do not have any trades in any of the mentioned stocks, and I have no plans to buy any new positions in the mentioned stocks within the next 72 hours.
