As founder of Fisher Investments, an independent adviser with
over 25,000 private and 100 institutional clients,
employs a "variety of strategies" to manage assets, adding value
by "identifying information not widely known," or interpreting
readily available information more accurately than other market
players, according to his website.
Fisher also frequently deciphers the market in his Forbes column.
On Sept. 5,
that it was currently in the latter half of a bull run, with more
ahead. Hence, he advised investors to buy "the biggest of the
big," as companies with $78 billion market capitalization or
higher have traditionally performed best in similar scenarios.
"And if I'm wrong and a bear lurks soon, mega-cap stocks will
drop far less than more speculative smaller stocks," he said.
In his updated portfolio, Fisher reveals these were his biggest
purchases of the third quarter: Comcast Corp. (
), Petroleo Brasileiro SA (
), Toyota Motor Corp. (
) and Royal Bank of Canada (
Comcast Corp. (
Fisher purchased 11,737,561 million shares of Comcast for an
average of $33.50 per share. The stock has increased 57 percent
year to date. It has a market cap of $99.8 billion.
Comcast is a media, entertainment and communications company and
majority of NBCUniversal. Its business ranges from high-speed
Internet and cable television networks, to film and theme parks.
Comcast's five-year annual revenue growth rate is 17.4 percent,
EBITDA rate is 15.2 percent and free cash flow rate is 32.1
percent. It also has a P/E ratio of 20.5, P/B ratio of 2 and P/S
ratio of 1.7.
In 2011, Comcast's revenue increased 47 percent to $55.8 billion
from $37.9 billion in 2010, due to the Jan. 28, 2011, acquisition
of a 51 percent controlling interest in NBCUniversal, a media and
entertainment company. It contributed 34 percent of its
consolidated revenue and 19 percent of Comcast's operating income
before depreciation and amortization in 2011.
In its results for its second quarter ended June 30, 2012, NBC
reported 6.1 percent year-over-year revenue growth, 35.1 percent
earnings per share growth, and 2.2 percent free cash flow growth.
It also paid $438 million in dividends and spent $750 million
repurchasing 25.8 million of its shares. It repurchased a total
of 51.7 million common shares for $1.5 billion year to date and
has $5 billion remaining under its share repurchase
Petroleo Brasileiro SA (
Fisher purchased 17,914,836 shares of Petroleo Brasileiro at an
average price of $21 in the third quarter. The stock has declined
7 percent year to date. The company has a $150 billion market
Petroleo Brasileiros, or Petrobras, is the Southern Hemisphere's
largest company by market cap and Latin America's largest by
revenue. It is a multinational energy corporation headquartered
in Rio de Janeiro, Brazil, and majority owned by the Brazilian
Petrobras has a P/E ratio of 13, P/B ratio of 0.5 and P/S ratio
Petrobras' revenue increased annually for the past three years,
from $91.2 billion in 2009 to $145.9 billion in 2011, after a
slight drop in 2009. Its net income increased from $14.7 billion
to $19.3 billion. Free cash flow has been negative for the past
In the first half of 2012, Petrobras' revenues increased 2
percent compared to the same period last year, on higher export
prices, domestic oil products indexed to international prices,
and exchange variation effects; an 8 percent increase in domestic
demand, mainly for gasoline; and increases in domestic gasoline
and diesel prices.
Net income fell by 37 percent due to depreciation of the Real
against the U.S. dollar, high expenses from dry wells and
decreased oil exported due to reduced output after it stopped
wells to improve operational efficiency and safety, and a
difference in domestic and international oil prices.
Operating expenses were higher due to higher personnel expenses
from a Collective Bargaining Agreement by 2011 and increased
workforce and third-party technical services and higher
exploration costs. They were partially offset by lower selling
In June, Brazil raised the price of diesel almost 4 percent and
gasoline almost 8 percent, followed by another 6 percent increase
in diesel in July, to enable the company to return to
Toyota Motor Corp. (
Fisher purchased 4,740,858 shares of Toyota Motor Corp. at an
average price of $79. The stock is up 19 percent year to date,
while the auto and truck manufacturers segment is down almost 5
percent. TM has a market cap of $124.3 billion.
Japan-based TM is an auto company operating in three segments:
automobile, finance and other (which is involved in housing and
communications). At the end of the first quarter, it had 507
subsidiaries and 2012 associated companies.
TM has a P/E ratio of 16.1, P/B ratio of 0.9 and P/S ratio of
TM pe,ps,pb Interactive Chart
In TM's first fiscal quarter ended June 30, 2012, its net
revenues increased 59.9 percent from the same period the previous
year, and net income increased from 1.1 billion yen to 290.3
billion yen. The company reported significantly increased vehicle
sales on recovered demand from the previous year, in which supply
was hampered by the Great East Japan Earthquake. Vehicle sales
increased in all regions, including Japan, North America, Europe,
Asia and Central and South America, Oceania and Africa.
The company maintained its operating income forecast of 1
trillion yen, as it expects negative FOREX impact due to a weak
euro and market deterioration risk.
Royal Bank of Canada (
Fisher purchased 6,074,439 shares of Royal Bank of Canada for an
average of $54 per share. The stock has gained 13 percent year to
date. RY has a market cap of $84.9 billion.
Royal Bank of Canada is one of the largest banks in Canada by
assets and market cap, and one of the largest in the world by
market cap. It has more than 15 million clients in personal
business, public sector and institutional, and has offices in
Canada, the U.S. and 51 other companies.
It has a P/E ratio of 12.2, P/B ratio of 2.1 and P/S ratio of
RY pe,ps,pb Interactive Chart
RY has a five-year annual growth decline of 1.8 percent, EBITDA
growth rate of 2.8 and book value growth rate of 15.3. Its
revenue has been increasing annually for the past three years,
from $34.7 billion in 2009 to $36.3 billion in 2011. Net income
has increased for the past four years, from $3.7 billion in 2009
to $6.5 billion in 2011. In 2011, it reported negative $3.3
billion in free cash flow, a decline from $9.9 billion the
The bank announced on Oct. 12, 2012, that it would repurchase up
to 30 million of its common shares, representing about 2.1
percent of total shares outstanding. RY has a Tier I capital
ratio of 13 percent and Total capital ratio of 15 percent.
Ken Fisher bought 61 other new stocks, the next largest of which
are Novartis (
), Vodafone Group (
) and China Mobile (
). See all of them in his portfolio. Also check out the
undervalued stocks, top growth companies and high yield stocks of
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