Guru Investors' Most-Bought Stocks of Second Quarter 2013

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Now that all the investing gurus that GuruFocus covers have reported their portfolio updates for the second quarter, trends in their buying and selling become visible. The first question is, which stocks did they buy the most? A GuruFocus feature can extract the answer: the S&P 500 screener. This screener has several settings that generate different categories of companies bought by a variety of categories of gurus. Setting it to "all investors" and leaving all other categories at their default, the screener produces the most-bought companies of the S&P 500. According to the screener, they are: Apple ( AAPL ), Oracle ( ORCL ), Costco ( CSCO ) and Microsoft ( MSFT ).

Apple ( AAPL )

In the second quarter, 20 gurus established new positions in or added to existing positions in Apple. The largest new position came from Jim Simons , who bought 714,487 shares. The largest increase came from Manning & Napier Advisors Inc., who increased their position by 218.32% to 76,782 shares. Apple's second quarter share price was $430.74, and has since increased almost 18%.

Further, David Einhorn owns the largest Apple position, with 2,397,706 shares or 0.26% of the company's shares outstanding. The position equals 16.2% of his assets managed.



For its third quarter results released July 23, Apple posted $35.3 billion in revenue, up slightly from $35 billion in revenue a year earlier. It also posted net profit of $6.9 billion, or $7.47 per diluted share, down slightly from $8.9 billion, or $9.32 per diluted share a year earlier. Gross margin declined to 36.9 percent from 42.8 percent.

Apple's revenue and earnings history:



The Peter Lynch chart would say the stock is undervalued:



Apple has a market cap of $456.94 billion; its shares were traded with a P/E ratio of 12.50 and P/S ratio of 2.80. The dividend yield of Apple stocks is 2.20%. Apple had an annual average earnings growth of 82.7% over the past 10 years. GuruFocus rated Apple Inc the business predictability rank of 4.5-star.

Oracle ( ORCL )

The number of gurus either introducing Oracle to their portfolios or adding to existing positions in the second quarter totaled 22. The largest new buy was made by Donald Yacktman, who bought 0.43% of shares outstanding. The largest increase was made by Lou Simpson, who increased his position 63.69% to 5,019,659 shares. The average price of Oracle in the second quarter was $33.18.

Jeremy Grantham claimed the largest position with 1.06% of outstanding shares. Lou Simpson has the largest percentage invested, with 10.2% of his total assets managed consisting of the stock.



In the company's fiscal 2013 fourth quarter reported June 20, 2013, Oracle reported unchanged GAAP revenues at $10.9 billion, and GAAP net income increased 10% to $3.8 billion.

Oracle revenue and earnings history:



The Peter Lynch chart would say it is about fairly valued:



Oracle Corporation has a market cap of $149.11 billion; its shares were traded at around $32.20 with a P/E ratio of 14.30 and P/S ratio of 4.20. The dividend yield of Oracle Corporation stocks is 0.80%. Oracle Corporation had an annual average earnings growth of 20% over the past 10 years. GuruFocus rated Oracle Corporation the business predictability rank of 5-star.

Cisco Systems ( CSCO )

Fourteen gurus purchased or added to positions in Cisco Systems in the second quarter. The largest new buy was made by Andreas Halvorsen, who purchased 2,857,400 shares. The largest increase was made by Chuck Royce, who augmented his holding by 36.73% to 338,000 shares. The average price in the second quarter was $22.50.

Jeremy Grantham holds the largest position, with 1.17% of shares outstanding. Tweedy Browne has the largest portion of their assets invested in the company, at 6.7%.



Cisco reported its fiscal year 2013 fourth quarter earnings on Aug. 14, showing a revenue increased of 6% year over year to $12.4 billion and earnings of $2.3 billion, or $0.42 per share, increased 18.4% and 16.7%, respectively, year over year. Revenue was a company record.

Cisco earnings and revenue history:



The Peter Lynch chart suggests the stock is undervalued:



Cisco Systems Inc. was incorporated in California in December 1984. Cisco Systems has a market cap of $130.62 billion; its shares were traded at around $24.44 with a P/E ratio of 13.50 and P/S ratio of 2.70. The dividend yield of Cisco Systems stocks is 2.50%. Cisco Systems had an annual average earnings growth of 8.7% over the past 10 years. GuruFocus rated Cisco Systems the business predictability rank of 3.5-star.

Microsoft ( MSFT )

Twelve gurus bought or added to positions in Microsoft in the second quarter. The largest new buy was made by Jeff Ubben, who purchased 0.4% of shares outstanding. The largest increased was made by John Hussman, who raised his position 66.67% and now owns 10,000 shares.

The largest Microsoft position is held by Dodge & Cox which owns 0.93% of shares outstanding. The manager with the largest portion of assets invested in the company is Jeff Ubben, at 10.8%.

Jeff Ubben's holding history:



In the quarter ended June 30, 2013, Microsoft reported revenue of $19.9 billion, up from $18.06 billion a year earlier. Net income was $4.97 billion, or $0.59 per share, up from a loss of $492 million, or $0.06 per share, a year earlier.

Microsoft earnings and revenue history:



The Peter Lynch chart would say the company is undervalued:



Microsoft Corporation has a market cap of $263.42 billion; its shares were traded at around $31.62 with a P/E ratio of 12.40 and P/S ratio of 3.50. The dividend yield of Microsoft Corporation stocks is 2.90%. Microsoft Corporation had an annual average earnings growth of 14.3% over the past 10 years. GuruFocus rated Microsoft Corporation the business predictability rank of 3.5-star.

To see more most-bought stocks, go to the S&P 500 Screener.

Interested in GuruFocus Premium Membership? Try it free for 7 days.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: AAPL , CSCO , MSFT , ORCL

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