Canadian value investor
Prem Watsa
of Fairfax Financial Holdings reported his third quarter
portfolio updates per the earnings season, which consisted of 10
total transactions: three new buys, two shareholding additions,
three reductions and two complete sells of all his shares of
companies.
As of the end of the third quarter, Watsa had a total of 42
stocks in his portfolio, a value of $1.85 billion, and a
quarter-over-quarter turnover rate of 11%.
Currently, his
top five holdings
are:
1. Johnson & Johnson (
JNJ
) representing 22.2% of his portfolio, which is 0.22% of shares
outstanding.
2. Research in Motion Ltd. (
RIMM
) representing 21.1% of his portfolio, which is 9.89% of shares
outstanding.
3. Level 3 Communications Inc. (
LVLT
) representing 16.1% of his portfolio, which is 5.96% of shares
outstanding.
4. Resolute Forest Products Inc. (
RFP
) representing 13.3% of his portfolio, which is 19.11% of shares
outstanding.
5. U.S. Bancorp (
USB
) representing 5.8% of his portfolio, which is 0.16% of shares
outstanding.
Technology, financials and health care are the leading sectors
represented in his portfolio. His complete
sector weightings
are as follows:
|
Technology
|
25.90% |
|
Financials
|
24% |
|
Health Care
|
22.60% |
|
Telecom
|
21.60% |
|
Consumer Services
|
3.20% |
|
Oil & Gas
|
2% |
|
Consumer Goods
|
0.40% |
|
Industrials
|
0.40% |
Among all of his third quarter updates, the transactions that
created the most impact to his portfolio were:
1. His 93.14%
increase
of his current stake of the company, Research In Motion Ltd. (
RIMM
), which impacted his portfolio by 10.18%
2. His 99.37%
reduction
of his current stake of the company, USG Corp. (
USG
), which impacted his portfolio by 6.76%.
3. His 30.03%
reduction
of his current state of the company, US Bancorp (
USB
), which impacted his portfolio by 2.25%.
Prem Watsa
completely sold out of his shares of investment firm, Taiwan Fund
Inc. (
TWN
) and toy company, Jakks Pacific Inc. (
JAKK
), after lasting only one quarter in his portfolio (both were
acquired in the second quarter of this year).
Below are Prem Watsa's newest stock buys for the third quarter.
Nexen Inc. (
NXY
)
Prem Watsa's new holding of Canada-based global energy company,
Nexen Inc. (
NXY
), amounted to 57,500 shares.
With a market cap of $12.66 billion, Nexen is in the business of
developing energy resources worldwide. About 70% of its
production comes from offshore facilities, according to its
website, specifically in the UK North Sea, Gulf of Mexico and the
Atlantic Ocean (near West Africa). Its onshore drilling occurs in
Canada, Yemen and Columbia.
In the course of 10 years, Nexen's revenue growth rose at a rate
of 12.5 percent, positively; however, in the past 12 months, its
revenue has seen a slight decline at a negative trend rate of 5.4
percent.
Nexen 's trading price is close o a one-year high, along with its
P/B and P/S ratios. At $24.52 per share, it is trading close to
its recorded maximum price of $24.69.
Nexen is ranked two stars in Business Predictability, 6 out of 10
in Financial Strength and 7 out of10 in Profitability and Growth.
View Nexen's 10-Year Financials to see its financial standings.
Fushi Copperweld Inc. (
FSIN
)
Prem Watsa's new holding of bimetallic producer, Fushi Copperweld
Inc. (
FSIN
) amounted to 87,000 shares.
With a market cap of $355.3 million, Fushi Copperweld was
developed in 2007, after the merger of China-based Fushi
international and Copperweld Bimetallics LLC. Its global
headquarters is in Beijing, while its American headquarters is in
Nashville. The company prides itself for producing high quality,
completely solid copper-clad steel, setting it apart from
competitors who only coat products with copper.
FSIN data by GuruFocus.com
Fushi Copperweld's Financial Strength is at a 9 out of 10. Its
10-Year Financials show a rising rate of free cash flow, and a
steady elimination of long-term debt. Its Profitability and
Growth Rank is at a 6 out of 10, showing a positive revenue trend
line a solid interest coverage.
New Oriental Education & Technology Group Inc. (
EDU
)
Prem Watsa's new holding of the China-based educational services
provider, New Oriental Education & Technology Group Inc. (
EDU
) amounted to 22,200 shares.
With a market cap of $2.7 billion, New Oriental is a
largely-recognized brand in China for private education. Founded
in 1993, New Oriental has built a network of 55 schools, 726
learning centers, 5000 third-party book stores, in about 50
cities as well as online, according to its website.
New Oriental is currently trading at $18.50 per share,
categorized under two Good Signs; its only Severe Warning sign
denotes an asset growth faster than revenue growth.
EDU data by GuruFocus.com
View the rest of New Oriental's 10-Year Financials to see its
current financial standings.
To read more about Prem Watsa, view our GuruFocus article and
interview archives. Also view the rest of his third quarter
portfolio updates here, as well as his undervalued stocks, top
growth companies and high yield stocks.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
.